how to use titie loans

The Truth: 5 Reasons People Consider Getting a Title Loan

There’s no denying that title loans are one of the most popular types of loans utilized by Americans today. In these hard economic times, their speed and convenience are simply unparalleled.

How are Americans using title loans specifically, though? What’s truly causing them to use them? That’s what we’re here to answer today. If you already know about title loans are ready to jump into the commitment of them, please visit our Homepage where we break down the basics of the situation. 

Healthcare Emergencies

Studies show that the vast majority of bankruptcies in America stem from one cause: healthcare. Skyrocketing healthcare costs are an utter plague right, and even a short stay in an emergency room can set you back thousands. Even worse, many employers offer only limited sick time off, meaning any recovery period more than a weekend puts you at risk of losing money if not your job outright.

Another problem is that if you don’t quickly pay off your bill, many hospitals will sell your debt to specialized debt collection agencies which can be infamously aggressive in pursuing you, some even in the past going so far as to harass debtors at their work or branching out to harass their family members.

All of the above is what makes title loans in Illinois and other states such a useful tool for most Americans in battling the uphill battle of staying afloat even with medical costs.

Car Accidents

While other countries, and certain large cities in the U.S., have access to comprehensive public transportation, the truth is that for the vast majority of us our car is our lifeline to the world. It’s our access to the stores we shop for food, the bars and cubs we see our friends at, and (most importantly) the job where we make our livelihood.

All of this means that when we lose our cars we lose access to so much more that it can comfortably be described as a catastrophe. How does that relate to title loans in Illinois? Well, while you can’t get a title loan on a car right after it’s been in an accident, a lot of American households have two vehicles, which is useful because a title loan can be taken out on the second vehicle to pay for repairs on the first if you find yourself short of cash.

Job Loss

title loan for unemployed

There’s nothing more financially crippling than being fired or laid off. Without new money coming in, you’re on a ticking time clock until your bank account hits zero. Luckily, title loans are an excellent way of slowing down that clock. Considering how much you paid for your car, isn’t it only fair that it helps you in your hour of need?

Having access to money during periods of unemployment can also provide you with the resources to get a new job. New clothes, a professional resume, networking events: none are cheap, but all are ways of raising your chances of finding a new job and reopening the gates of income.

Preventative Care

It may sound counterintuitive, but one of the best ways to save money is to spend money. Specifically, to spend small amounts of money strategically to prevent greater problems down the road and nip them in the bud. A good example of this is dental care: yearly dental cleanings are relatively inexpensive, but still, something most of us skip, unfortunately, and especially when money is tight they can seem like a luxury. But they’re actually instrumental in preventing cavities and root canals down the road which can cost thousands of dollars.

To judge whether it makes sense to take out title loans in Illinois for preventative measures, estimate how much the problem will cost you in the long term in the worst-case scenario, and then estimate the interest rate on a loan. The resulting numbers should be your guide.


The final use for title loans in Illinois is simple: to invest in your future. Instead of just dealing with emergencies as they happen or preventing them, investing allows you to fully take control of your future. Investments can take the shape of putting money into real estate, or even just paying for classes or professional enrichment like seminars. The latter two may not hold the prestige of becoming a captain of industry or real estate, but potentially be worth more in the long run as they can drastically increase your earning potential.

How do you decide what to invest in though? And whether it’s worth it or not? Just as with preventative care, the best way to judge is to simply estimate how much interest your investment will accrue (or how it will raise your earning potential), and then balance it against how much the interest on your loan will be. For more information on the title loan process or if you have any burning questions you need answering, check out our Title Loans FAQ page where we breakdown some common misconceptions and questions.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.