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Illinois Car Title Loan |
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Auto Loans » Illinois Car Title Loan |
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Car Title Loans are loans secured against the title to the Car. If not repaid in time it amounts to the lender taking the vehicle and selling it to get the loan amount back. Car Title Loans are small emergency loans like payday loans generally targeted towards individuals who need cash in a hurry and don’t have access to other types of Car financing like Banks, Charge Cards or family members to offer them much-needed cash. |
Car Title Loans carry an abnormally high rate of Annual Interest close to 300% and are extended for a short period of time of about two to three months.
Car Title Loans offer reasonable monthly Installments to be paid for a period of time but then require the remaining amount of the balance to be paid all at once- a balloon payment at the end of the loan which is often out of reach for the borrower.
As Car Title Loans are secured against the title to the Car, they carry a rider that the Car may be repossessed by the lender if the amount borrowed is not repaid back in time. Once the Car is repossessed, additional fees begin to accrue on the loan amount; the Car is released only when all the fees on the amount of loan is cleared.
The best way to avoid losing your Car to the title lender is to repay the amount of loan taken in time. Otherwise, you may end up borrowing even more money from another source to repay the existing amount of Loan!
Title Loan companies must be licensed in order to provide Title Loans in Illinois. You can get a complete list of Consumer Installment Licensees available here.
So before availing of a Car Title Loan be sure of your financial condition of paying very high interest rates and the possibility of a balloon payment at the end of the Loan period. Otherwise you may end up losing the most treasured asset of today’s life-the Car!
Click on the following links for more information on Car Title Loans in Illinois:-
idfpr.com
illinoislegalaid.org
Make sure that Car Title Loans should be the Last Resort as you run the risk of losing your Car!
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