3 Questions to Ask Before Getting a Title Loan
July 27, 2020 | Emma Frost
Have you ever sat on your phone after an emergency, scrolling through your fast loan options while feeling stressed and confused? If this sounds familiar, don't worry. You're not alone. According to CNBC, roughly 55% of Americans have nothing stored away to handle emergencies and, when many people find themselves at one point or another struggling to afford a surprise expense, it's easy to feel bombarded. This is especially true with the cost of living always on the rise and the other bills that we accumulate in our day-to-day lives. In your research, you've probably stumbled across an option referred to as title loans and now you may be wondering what a title loan is.
What is a Title Loan?
Title loans are a short-term loan option that is designed to allow you access to a larger sum of money without the stress and hassle of applying for traditional bank loans or credit cards. They're one of the fastest ways to get loans, with many receiving funds on the same day. Now you know what a title loan is, here are three questions you should ask yourself when considering this fast loan option.
1. How Much Money Do I Need?
Whatever financial conundrum you’re trying to get away from, it’s important to know how much money you need access to. The best way to accomplish this is to conduct your own research regarding what your intended title loan purpose might cost you. Here's some information to get you started:
- Home Repairs: If your home has sustained damage at the hands of a natural disaster or accident, you could start by researching the cost of the repair materials and the labor. Trying to anticipate every contingency is a great way to get an idea for how much you'll need.
- Medical Bills: Did you know that the most common reason for someone filing for bankruptcy in the United States is due to the high cost of medical bills? The average cost for healthcare in 2017 worked out to be $3,200 per person. Luckily, bills are often easy to plan for because the amount is fixed and, even if you're slapped with surprise bills after the fact, title loans can offer you quick money.
- Prevention: Do you need to prepare your home for an upcoming storm? Price out some new windows and look up some of the best ways to bolster your property to come up with an amount that will suit your needs.
In the state of Illinois, you can qualify for up to $4,000 with title loans, which can go a long way in the categories of repairs, bills, or prevention.
2. What Loan Options Do I Have?
When considering potential options during a crisis, there are different loan choices out there that are meant to help you when you need it the most. Some of these options include:
- Personal Loans: Personal loans are a very versatile loan type; however, they are dependent upon credit score. You can't qualify for these loans with low or poor credit, and many lenders will deny even average credit scores. Personal loans can take a while to be approved for, however, which can ruin the purpose of searching for a fast loan option.
- Low-Interest Credit Cards: Low-interest credit cards often come with a 0% APR introductory period, but beware! These intro periods aren't permanent and any money that you fail to repay at the end of the period can and will begin to accrue interest. It's also easy to start charging the credit card - once you start, it's hard to stop!
- You Can Borrow Money from Family and Friends: While potentially embarrassing, if your inner circle has the money to spare, you can avoid high-interest rates and rely on a repayment plan that is specific to you and your needs.
- Title Loans: Title loans are an option when all other options fail as you can apply, be approved, and receive funds on the same day. The best part of these loans? They aren’t dependent on your credit score. Using your car title as collateral, you can be approved for your loan in just minutes of applying and having your car inspected.
3. What Will I Need to Supply to Qualify?
Applying and qualifying for a loan in the state of Illinois is easier than ever, thanks to the innovative Illinois Title Loans, Inc. process, which allows you to begin your application online from the comfort of your own home. Once submitted, a representative will contact you to set up a meeting at your closest store location, at a time that is most convenient for you and your schedule. During this meeting, you'll be asked to provide the following things:
- Your vehicle for inspection
- The lien-free title to your vehicle
- A driver's license or state-issued I.D.
During the inspection, the condition of your car will be examined and this will determine how much money you will receive for your loan, with the maximum being $4,000. You'll also be able to drive your car for the duration of the title loan. You’ll retain your keys and the ability to drive your car normally, ensuring minimal disruption to your life and your schedule.
Before you make any financial decision in your life, it's important to understand how the process works and what it can do for you. Regardless of whether or not you need money for preventative measures or to handle a large cost, title loans are a fast loan option that allows you access to cash quickly. We understand that when you are in a bind you need money immediately, which is why we've streamlined the process to make it as quick as possible and easy for you to receive the help you need. Let Illinois Title Loans, Inc. work hard so you don't have to. Apply today!