Title Loans Normal, Illinois
If you are in need of a loan and are not having much luck with credit unions, banks, and other standard options, then it may be time to consider title loans. To take out title loans Normal, Illinois residents need only to have a lien-free vehicle title in their name and a regular source of income to payback their loans. As long as they have these basic things, then they can typically qualify.
It is important to understand that, contrary to popular belief, title loans are not the same thing as payday loans. While they are short-term loans, title loans are collateral-based loans, meaning that they are secured by some type of collateral, which, in this case, is your vehicle title.
There are a great many benefits to taking out title loans, including the fact that you’ll usually get your money very quickly, often as soon as the same day that you apply for it, because a title loan quote is calculated instantly upon the application. However, before you enter into a title loan agreement, you should educate yourself on Illinois title loan laws . That way, you can protect yourself and your rights as you go through the title loan process, and you can also avoid any unpleasant surprises along the way.
When it comes to title loans Normal and Bloomington, Illinois residents are often concerned about how much they will have to pay in interest. While it is true that title loans Illinois lenders do sometimes charger higher interest rates than other types of lenders, it is also true that all lenders vary in the amount of interest they charge. Thus, it is smart to check out different lenders in your area and to compare interest rates from one lender to the next in order to find the best deal.
Also, keep in mind that title loan lenders are dealing with high risk borrowers in most cases, such as borrowers who have bad credit histories or no credit. As such, it is normal for interest rates to be a little higher than you’d find with banks or other lenders. You are basically paying more due to the risk to the lender and to the convenience of getting your money so quickly. For most borrowers, the slight increase in interest rates is definitely worth it.
Another really nice thing about title loans in Illinois is that, if you fall behind on your loan payments, you can always request an extension from your lender. Most lenders are very willing to extend your loan and give you more time to pay if needed.
The key is to stay in good contact with your lender. If you know that you will not be able to make a payment when it is due or that you will not be able to make it in full, let your lender know. When there is good communication, you can always work something out, but if you do not take these steps, your lender may think that you have defaulted on your loan and take steps to repossess your vehicle and/or hand your account over to collections.
If you are worried about making your payments on time or forgetting to make payments, then request that your lender set up to automatically draft your payments from your bank account. You can work out a repayment schedule with your lender so that you know when payments will be drafted and in what amount. It is also convenient to have your loan funds direct deposited into your bank account.
If you can follow these simple tips and know the laws and your rights, you should have a great experience with title loans.