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Title Loans Springfield, IL

Title Loans Springfield has been solving real financial problems for customers over decades. Although the capital of Illinois is both a beautiful place in which to live and work and an incredibly low-cost area, at least as major Midwestern cities go, even residents of a place as idyllic as Springfield sometimes run into cash crunches, as everyone does from time to time.

When a cash shortfall or unexpected consequence hits, there’s no better place to turn than Title Loans Springfield to find a solution to your short-term money problems.

Title Loans Springfield delivers real solutions for short-term cash shortfalls

An Illinois title loan is a type of secured loan that uses the borrower’s car as collateral. A secured loan is any type of loan that has a physical piece of property – whether a home, car, boat or anything else of value – to ensure that, should the loan terms not be followed or the loan not repaid according to schedule, that the bank is able to collect the amount of the principal, interest, fees and penalties. Everyone is familiar with various types of secured debt, such as mortgages and car loans. However, this familiarity can sometimes hide the true nature of the risks involved.

Generally speaking, your local bank will not engage in blatantly predatory practices in lending people money to purchase their residence. However, this does not mean that using your home as collateral on any loan is safe. Reverse mortgage companies and home equity loan underwriters often have enormous incentive to attempt to take possession of homes that are used as collateral. This creates tremendous risk for the borrower, as the possibility of losing their home is a real possibility with these loans.

On the other hand, title loan companies offer products where the underlying asset is typically unfavorable for the lender to take possession. For example, salvage car title loans may be able to provide the borrower with significant principal. But the lender may stand little chance of recouping his total losses should the loan not be repaid. Why would a lender use a low-value asset as collateral on a significant loan? Because title loan companies have discovered that the mere threat of taking possession of people’s primary transportation is almost always enough to ensure that the loans will be repaid.

This makes title loans one of the more interesting forms of secured debt. In the case of a total default on the loan, both the lender and borrower almost always lose. This is a naturally good arrangement because it means that the borrower’s interests are perfectly aligned with those of the lender, making title loans one of the least predatory forms of lending in the United States.

On the contrary, other forms of secured debt, such as jewelry or high-end electronics backed loans at a pawn shop or the real-estate-backed loans of a reverse mortgage, give the lenders a tempting and highly perverse incentive to cause the loan to default so that they may profit from the sale of the underlying collateral assets.

But home-equity-backed loans do have one major advantage over other, more quickly available forms of secured debt: They typically offer high principal amounts with low total costs. This is another area where title loans shine. A typical title loan will have an APR of just 10 to 20 percent, with a few associated fees. On the other hand, a payday lender may charge as much as 500 percent per year on maximum loan amounts as low as $100. This makes title loans a real solution to life’s short-term cash crunches.

Title Loans Springfield can provide you with the quick cash you need at a rate that you can easily afford. What’s more, our loans all but guarantee that you won’t lose your car or suffer exorbitant late fees. Take a couple minutes and fill out the simple form on our site. You’ll be amazed at what a title loan can do for you!

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