Title Loans Villa Park, IL
Like the other states, there is a need for car title loans in Illinois. The reasons people need the money varies, but the reasons individuals choose title loans remain the same. Midwest Title Lender works diligently to fulfill this need.
Introduction to Title Loans Villa Park
Title loans are quite often the only choice for those people who do not qualify for traditional bank loans.This is usually because of credit or the borrower has a steady source of income but is not employed. Banks usually want to see steady employment, so those who are on social security, welfare, disability or welfare may not qualify.
A title loan is a type of loan that allows the vehicle’s owner to use the clear title to obtain a loan. The equity in car titles serves as collateral for title loans Villa Park. Midwest Title Lender works with those residents who have a need to cash in on their car’s equity.
Applying for Title Loans in Villa Park, IL
It’s a simple process to apply online for title loans in Elmhurst or anywhere in Illinois. Midwest Title Lender requires very basic information that includes:
- Make, model and mileage of the collateral vehicle
- Clear title to the collateral vehicle
- Name, zip code and telephone number
- Proof of a regular source of income
Once the potential borrower completes the application he will receive a car title loan estimate after which he can arrange to speak with a loan specialist at his earliest convenience.
The amount of money the borrower can obtain depends on the value of the car. While most title loans are of a short-term nature, they can sometimes be extended for longer periods of time. The amount of the loan and term is contingent upon lender policies.
Legal Regulations on Car Title Loans In Illinois
Borrowers in Illinois must have the physical car title in their possession before taking out a title loan. The lender must also provide a pamphlet from the Department of Financial and Professional Regulation-Division Financial Institutions along with a contact phone number to obtain information about debt management.
Proof of income is required.
Lenders must use the simple interest method. Car title loans must have equal payments, and the payment schedule must be spelled out in the loan agreement.
The maximum amount of a title loan in Illinois is $4,000, and the payments are not allowed to exceed 50 percent of the borrower’s gross monthly income.
Once the loan is paid in full the lender has 24 hours to release the lien, provide proof of the release and return the title. If the borrower makes the last payment by check the lender is permitted to wait five days to ensure the check clears.
Only one title loan is allowed at a time, and the borrower must wait 15 days when he pays off one loan to take out another.
After 20 percent of the loan is paid, the borrower can request a refinance, but the new loan cannot exceed the previous outstanding balance.
If the borrower is in default on payments, the lender must contact him to offer the opportunity for a voluntary surrender. Lenders are not allowed to repossess a vehicle and lease it back to the borrower.
Benefits of Car Title Loans
The most common reasons a consumer may choose to apply for a title loan are:
- No credit check
- Employment not needed though a regular source of income is required
- Minimal personal information required
- Competitive rates and terms
- Fast loan closing
These loans tend to be designed for those with bad credit who do not qualify for traditional bank loans.