California Cash Car Title Loans

When taking out a car title loan, it's important to understand how the loan is structured and what the borrower is expected to pay and when. A car is a significant asset to put on the line, and failure to make the required payments according to the loan agreement can result in car title repossession.

The interest rate charged by the lender and the length of the loan term are the most important parts of the agreement. The interest rate is the amount a lender charges borrowers for lending them cash. It is expressed as a percentage of the borrowed amount. Some lenders only communicate their interest rate in monthly terms, but an annual interest rate can be calculated by multiplying by 12. The term of the agreement is how long the borrow has to pay back the total cash owed. This can vary from 30 days to more than 24 months depending on the agreement.

End of Term for Car Title Loans

What happens at the end of the term of a title loan is another important part of the agreement. Some agreements are structured so that the bulk of the monthly payments go towards interest only and a balloon payment, which can equal the total borrowed amount, is due at the end of the term. If the borrower is unable to pay the balloon payment, the loan may be rolled over into another agreement.

Wilshire Consumer Credit offers higher-limit car title loan with flexible terms and competitive interest rates in California and four other states. In California, the minimum borrowed amount is $2,510 for this lender.