We all find ourselves in financial problems at one point in life. The way we deal with such problems vary. Some of us ask friends and relatives for assistance while others run to banks for payday loans. But what happens if you don’t have people who can help you, or you are unable to get a payday loan in a bank? This is where a title loan comes in.
A lot of people in Waukegan and other parts of Illinois do not know how title loans work. A title loan is simply a form of debt financing where the borrower uses one or two of his assets as collateral. The most common type of title loan is car title loan. In a car title loan, the borrower provides the title of his vehicle in exchange for a loan. The lender keeps the title of the vehicle as collateral until the borrower repays the amount loaned out in full. In case the borrower fails to repay the loan, the lender reserves the rights to repossess the vehicle and sell it to recover the loan. Most Illinois car title loans have a 30-day repayment period. The loans usually do not exceed 25 percent of the total value of the vehicle provided as collateral.
There are two ways you can apply for title loans in Waukegan. You can visit the lender’s offices, or you can apply online. Online title loan application is more convenient and simple than being physically present at the lender’s offices. When applying online, you will be asked to provide a few details about your vehicle as well as your personal information. The details of the vehicle should include the year of manufacture, make, model and approximate mileage. Your personal details should include your full names, phone number, home address and zip code. Once you fill out and submit the application form, you will be provided with a title loan estimate. The lender will also send one of their representatives to your residence to inspect the vehicle.
Title loans in Waukegan are governed by the Illinois Department of Financial and Professional Regulation (IDFPR). The department has regulations designed to offer legal protection against dishonest lenders who want to exploit unsuspecting borrowers. According to these regulations, the amount borrowed in a title loan should not exceed $4,000. The interest charged should not exceed 50 percent of the principal amount. There are no balloon payments, meaning borrowers must repay the loan in equal installments. All title loans should be approved using a state-based database. The lender must furnish the borrower with a booklet describing the availability of debt management services and consumer rights and responsibilities. No lender should repossess a vehicle and lease it back to the borrower.
It is easier to apply and get a title loan than the traditional loans. You simply make an application online, and the loan will be ready within a few hours. One can qualify for a title loan regardless whether he has a bad or good credit report. Title loan lenders do not consider one’s ability to repay the loan since they have a car title to turn to in case there is a problem with the repayment. Title loans have short repayment periods. This makes them the best option for people who do not want to enter into a long-term debt. Also, borrowers can adjust the repayment terms depending on their financial situation and the nature of the emergency.
Never panic whenever you have a financial emergency. Apply for a loan using the title of your car, and your financial problems will be solved within hours.