A car title loan in Illinois can be a good option if you need extra cash, but your creditworthiness is too low to get your money from the bank. In the case of such an obligation, the collateral is the car to which the creditor is also entitled at the time of repayment of the obligation. This means that if you stop paying your loan installments on time, the creditor will have the right to sell the car to get back the money you are owed.
A bank loan is available to people with good creditworthiness and credit history. If the information about your creditworthiness is not positive, or your income is not sufficient, you may receive a negative decision on your loan application. An alternative to a traditional bank loan is a loan against, for example, a car. Securing the loan with a vehicle means that the customer can receive a higher amount, and the funds will be transferred to his account at an express pace. See what you need to know about a title loan before you decide on this type of financial commitment.
What is a car title loan in Illinois?
The very name of the liability indicates what type of loan we are dealing with. A title loan in Illinois will be a good solution for people who need a larger sum of money, but unfortunately their creditworthiness is not sufficient. It is also a solution that may be useful for people who do not want or do not have time to obtain an income certificate from their employer, or are struggling with bailiff enforcement. As you know, every lender wants to be sure that the money he has borrowed will be returned to him within the time limit set on the contract. If the risk of lending money to a specific person is too high (e.g. due to low creditworthiness), the lender may suggest granting a loan against collateral.
When the borrower ceases to pay the installments, the lender may take ownership of the pledged item, i.e. in this case the car. This type of financial product is available primarily in private loan companies. The car title loan in Illinois is not available in a traditional bank and is intended in particular for people with very low creditworthiness or bad credit history. This state of affairs makes it impossible to take a loan from a bank, so the only solution may be a secured loan.
A car title loan agreement is similar to a traditional loan agreement. The only difference is that two additional documents are attached to it – a car transfer agreement and a power of attorney authorizing the loan company to enter itself as the owner of the vehicle. Of course, after the loan is repaid, the lender undertakes to transfer full ownership of the vehicle to the customer.
Who can get a car title loan in Illinois?
To receive a title loan in Illinois, you must meet several conditions that loan companies put in front of their clients. The basic requirements that can be found in most loan companies include:
– legal age;
– possession of a valid ID card;
– having full legal capacity;
– being the sole owner of the vehicle to be pledged.
In addition to these basic requirements, loan companies may also set additional requirements for clients. One of them may be that the car has a valid technical inspection, as well as third party liability insurance. Additionally, the loan cannot be secured with an old car. Most loan companies clearly state the maximum age of a vehicle that can be used as a collateral. In most cases, the maximum vehicle age is 12 years. This is because a car that is too old may be unprofitable for the creditor when he has to sell it in order to recover the money that the debtor did not return.
What documents do you need to prepare to get a car title loan in Illinois?
If you want the entire process of applying for a car loan in Illinois to be efficient and fast, you should prepare the relevant documents in advance. These include: ID card, vehicle card (if issued), vehicle registration certificate with a valid technical inspection and a document confirming payment of the civil liability insurance policy. The provided documents will be required by most loan companies and depending on the requirements, this list may be extended with a few additional ones. However, the details of the documents required to take out a specific loan should be found on the lender’s website or you can find out about them at a stationary facility.
How much can a title loan be and where to look for it in Illinois?
A car title loan in Illinois can amount to as much as 40-70% of the value of the vehicle that is used as security. This means that you can count on very high sums if you have a young car with good parameters. However, where to find a favorable loan offer to get the highest amount on good terms? First of all, you should start your internet research. You can easily find product comparison websites offered by private loan companies. Without leaving your home and without much effort, you will get acquainted with several or even a dozen different loan offers. Thanks to this, you will not have to visit stationary loan companies in Illinois and compare offers from many different places on your own.
A good solution is also to use the help of a credit advisor. Such a person will compare offers from several different places for you and present you with a solution ideally suited to your financial capabilities and needs. You will not have to worry that the offer you will take advantage of will be unprofitable, because the adviser’s task is to provide the best advice to the person who applies to him.
A car title loan in Illinois with the possibility of use
A car is for many people the primary means of transport that allows them to get to work and travel between home and store, city, etc. So it’s no wonder that most people would still like to use their car, even if it becomes a loan security. Fortunately, loan companies understand the needs of their customers and have introduced a car loan with the possibility of using it. Thanks to this, you will be able to receive the necessary money and drive your car at the same time.
Is it worth taking a title loan in Illinois?
A car title loan is a good solution as long as you keep paying back the loan installments. Otherwise, your car may be taken over by a loan company to compensate for losses incurred as a result of the borrower’s failure to return money. So, if you do not want to lose the item that secures the loan, you need to carefully consider your financial possibilities. A secured loan has many advantages. One of them includes, for example, the possibility of obtaining a high amount of money, even despite not the best creditworthiness and credit history.
A secured loan in Illinois is available to people who have problems getting a loan from a bank and can be a way to solve their financial needs. If this type of product is well suited to the borrower’s capabilities, he should have no problems with repaying the debt and regaining full right to his car. In addition, if you want to continue using the pledged vehicle, you have this option if you decide to offer a loan against the car with the possibility of using it.
It is difficult to unequivocally answer the question of whether it is worth taking a specific financial product. It all depends on the individual situation of the person. For some, a secured loan will be beneficial and for some it will be a bit less, and you should consider all the pros and cons. In case of doubt, you can always consult a specialist.
Illinois Car Title Loan Alternatives Offered by Allinonejewelryandloans.com
Allinonejewelryandloans.com operates in the following cities of Illinois:
- Downers Grove
- Peoria City
- Oak Park
- Elk Grove
- Du Page
- Champaign City
- St. Charles
- Bloomington City
- Arlington Heights
- New Lenox
- Orland Park
- Des Plaines
- Tinley Park
- Oak Lawn
- New Trier
- Rock Island
- Granite City
- Mount Prospect
- East St. Louis
- Hoffman Estates
- Lake Villa