Title Loans Oak Forest, IL
Finding the best title loans Oak Forest requires research on the part of the potential borrower. It’s not as simple as just picking any lender of car title loans in Illinois. If you’re going to give up the title to your car for a loan, you need to make certain you choose a legitimate lender.
Introduction to Title Loans in Oak Forest, IL
Title loans are beneficial for those who either don’t qualify for conventional bank loans or do not have the time to wait for approval. There are several factors that play into a potential borrower’s decision to choose to forego the more time-consuming bank or credit union loan in favor of title loans in Orland Park or Oak Forest.
What is a car title loan? This is a special type of loan that allows the individual to use the clear title of a vehicle as collateral for quick cash. There is minimal information required for Midwest title loans. Although it may vary depending on the lender, the basic qualifications and guidelines include:
- Make, model, and mileage of collateral vehicle
- Name, phone number and zip code of borrower
- Proof of income (sources of income are not limited to employment)
- No credit check required
Applying for Car Title Loans Oak Forest
Filling out an online application through Midwest Title Lender is a simple process. The first step is to fill out the application and provide vehicle and contact information. Once you complete the online application you can use a calculator for the title loan, after which a title loan representative will contact you at your earliest convenience.
As you can see, obtaining a car title loan in Illinois is a simple process. The amount of money you can borrow against your car title is contingent upon the value of your car and the limitations imposed by Midwest Title Lender. Borrowers cannot usually borrow the entire amount of their car’s equity but rather a maximum percentage, usually between 60-70 percent.
Title Loan Regulations in Oak Forest, Illinois
In most cases title loans are short-term fully-secured loans that require the borrower to turn over the original car title as collateral. This means if the borrower defaults, the loan company can repossess the car and apply the proceeds of the sale against the balance of the loan. The lenders usually market these loans to those who have bad credit and cannot obtain traditional bank loans.
The state of Illinois requires lenders to use the simple interest method which prevents them from charging interest on outstanding interest. It is also necessary for the lender to amortize the loan payments in order to maintain fairly equal payments.
This prevents the practice many other states have requiring either a balloon payment and extremely large final payments. Illinois does not allow balloon payments, so it is necessary for the lender to divide the payments into equal amounts.
Another area of Illinois title loan law forbids monthly payments to equal more than 50 percent of the borrower’s gross monthly income, so the term or amount of the loan would have to be adjusted accordingly. For this reason title loan lenders in Illinois must obtain proof of a borrower’s income before approving a loan. Illinois does not have a cap on interest rates, but it does have a $4,000 cap on the principal amount of title loans.
Benefits of Car Title Loans
There are several benefits to borrowers of title loans Oak Forest that include:
- Minimal personal information
- No employment necessary though a regular source of income is required
- Competitive interest rates