Emergency situations often call for emergency funds. But what if you don’t have any emergency funds saved up? Or what if you just paid off a debt or a hospital bill with your emergency funds? What if you simply weren’t expecting the unexpected? What can a person do in a desperate situation like this? Many run to the bank for a loan that is nearly impossible to get. With stacks of paperwork that feel like a university entrance exam along with extensive background checks, this option is not for the average person. Others run to their families who just might be equally short on cash. This person hangs his/her head having reached the end of the rope. It’s not fair. And, really, it’s not. However, there’s hope at the end of this rope. This hope is called a title loan. This title, or collateral loan, is made for precisely this type of situation –the unexpected, the emergency, and the unfair. Read further to learn about how you can get a car title loan in Chicago, Illinois.
Title Loans Chicago Requirements
The first requirement is a car. The car is collateral. If you have ever pawned something, this process is quite similar. Bring in something of value, in this case your car, and receive money –in most instances, the same day. Be prepared to show proof of ownership, either in the form of the car’s title or, if it’s almost paid off, payment receipts.
The vehicle, once turned over, will belong to the lender. However, don’t be dismayed –you might still be able to drive away with your car and cash in pocket. Ask the lender about this option. Many borrowers will need their vehicle for work and family purposes. Lenders are aware of this.
The second requirement is a filled out free application. It’s not an extensive application, as a matter of fact it’s less complicated than most job applications. With a great attitude, the application can be finished in a few minutes.
The third requirement is an up-to-date picture identification that proves you are over 18 years of age.
How Much You Can Borrow With Title Loans Chicago
The car determines everything. So if you have a rather new model without much wear and tear, you are eligible for more money than someone with a used car. It’s a logical process. It’s not without mentioning that cars depreciate over time, but the car specialists will do their best to give you a fair estimate. Not only are the car specialists experienced, but they use the Kelley Blue Book as a reference to decide the value of your car. While some lenders will give up to 85% of the car’s value, others may not; you should expect anywhere between a few hundred to a few thousand. This is based on average lending practices.
Some lenders will offer up to 85% of your actual equity of the vehicle. Lenders are protected as the debt is safeguarded by auto equity. The lender is not at risk of losing capital because the car will cover the debt if payments are not made.
Title Loans Chicago Payment Plans & Interest Rates
There is no shortage of payment plan options. Be sure that you explain any hardships you are having or give sufficient details regarding your financial situation. Don’t be afraid to ask questions regarding the loan interest, extended payment plans, default payments, etc. If you don’t ask, you won’t know.
Unlike other short term loans, a title loan doesn’t make you return the cash immediately. What does this mean? Tons of flexibility and the ability to extend the payment period. Fixed installment payment plans offer an extended time period to pay down your loan in full. This makes the loan more convenient, and allows borrowers to maintain control of their personal finances.
Additionally, you should evaluate the monthly payments in concurrence with your regular bill phase. Don’t put yourself in over your head? Take a moment to consider the cost of the loan itself, but do not underestimate the importance of real life expenses.
Because title loans, aka collateral loans, are short term, they have high interest rates. Try to pay back the loan in the shortest time possible. While some companies might charge high interest rates or add-on fees, others will offer very competitive rates paired with flexible programs and others will not. Most car title loans are written up as a fully remunerated loans so after making the last loan payment, your loan will be fully paid and your balance will drop to zero.
Again, these are high interest loans, so it’s recommended that people use these loans wisely. These loans are perfect for consumers who need short-term cash and do not have the credit to borrow from a bank.
And because a title loan doesn’t demand check credits, this will be the price you pay for the convenience in which you receive funds. Be thankful that such loans exist.
To repeat, the title loan, in most cases, does not check your credit history. This means those will no credit, bad credit, or even bankruptcy on file are encouraged to apply. Title loans are based on the value of the vehicle and not on your credit standing. Feel a sense of relief knowing that you will not be judged or punished for any past credit errors.
Title Loan Lenders in Chicago, Illinois
Before you sign any documents, be sure you feel comfortable with the payment plan that the lender has provided to you. If you don’t fee 100% confident, don’t sign. There are plenty of lenders in Chicago, therefore it’s advised that you take your time. Find one that understands you and what you need. There should not be any pressure surrounding your payment plan. The lender should be working for you and not against you.
The lender should be patient. The lender should recognize you are in an emergency situation that is out of your control. The lender should try to find you the best payment plan for your lifestyle. Don’t settle for anything less.
As the borrower, ask questions. You don’t want to make the mistake of signing or agreeing to something that will later become a burden.