Have you been turned down for a bank loan because of a poor credit score? Perhaps defaults or bankruptcy have prevented you from securing the funds you need to get your finances back under control. If you’re tired of applying for loans or credit cards only to end up rejected again and again, a secured loan might be the right option for you. Before you get started, you need to know what to expect with these types of loans so you can make a truly informed decision. Here are a few things to think about if you’re considering an Illinois title loan.
A title loan is a type of secured loan that allows you to access the equity of a vehicle you own to get emergency cash. With a title loan you continue driving your vehicle while making your payments. The lender will hold your vehicle title to secure the loan and return it once the balance is paid off.
All you need is a vehicle you own, valid photo I.D. and the title to your vehicle. The title must be lien-free, which means no other individual or entity has any claim to it. Many lenders have websites with easy online forms to help you get in touch with a friendly representative, who can give you the information you need to make your decision in no time at all.
When you apply for a title loan, be sure you understand the terms you are agreeing to in full before signing a contract and taking on the commitment that comes with it. Any reputable title loan provider will gladly go over all the terms of the loan before you sign on the dotted line. If you feel pressured in any way, simply walk away. Another thing to look for in a provider is a friendly and knowledgeable staff that treats you with respect. If a lender wants your business, they need to earn it.
When unexpected expenses arise, it can be hard to know where to turn for the fast cash you need. Overdrafts and late fees are expensive, and missed payments can cause hits to your credit score that cost more than just money – opportunities, like the chance to get a new car, home, or even starting your own business. That could get more than just your finances off track. The person who best understands your financial situation is you, and only you know if the benefits of a title loan outweigh the costs.