Title Loans Tinley Park, Illinois from Loan Cheetah

Online title loans are a great way to cover short-term expenses for Illinois borrowers, especially when those expenses are unexpected and add serious stress to the monthly budget. Unlike long-term loans from major banks, title loans provide some unique benefits in terms of their repayment period, approval rate, and other requirements. This makes them ideal for a large number of customers who may not qualify for, or wish to apply for, a long-term installment loan to fix a short-term financial issue.

Defining Title Loans for New Borrowers

For new borrowers, perhaps the only thing known about title loans is that they're able to be repaid in short order. It may not be completely obvious how title loans work, however. In addition to being repaid in as little as 30 days, title loans also offer a far higher rate of approval due to being secured loans.

Customers attach the loan to their vehicle, which reduces the risk to the lender and increases their chance at approval. This is a great fit for customers who prefer not to undergo a credit check as well as those who might not be approved by a traditional bank's lending procedures. Loan balances and repayment periods are tied to the value of the vehicle, ensuring that borrowers can afford to repay the loan and move on from a brief financial hardship.

Title Loans in Tinley Park: How to Apply

Applying for title loans is actually quite a bit easier than applying for other types of lending products. To get started, the online application will ask for some basic contact details. Required information includes the borrower's mailing address, full name, phone number, and zip code.

Next, vehicle information will have to be provided. To assess the vehicle's value and offer the proper loan amount, borrowers will need to provide the application with their car's make, model, year, and current mileage. Upon submitting this information, an instant title loan quote will be generated for the borrower's reference.

The final stage of the approval process involves interacting with a loan representative. The loan representative will review the submitted application, call to confirm a few details, and then indicate whether loan was approved. Most loans are available in the borrower's bank account one business day after approval.

State Regulations of Title Loans in Tinley Park

Illinois regulations have sought to make title loans in Chicago more accessible and affordable for buyers who are in a financial pinch. The state requires the use of a simple interest calculation with each payment instead of a compounding interest calculation. This saves borrowers from paying an excessive amount of interest each month.

In addition to capping monthly interest rates at 25 percent, state regulations also allow borrowers to extend the repayment period of their loan if they cannot afford to satisfy the outstanding balance immediately. This procedure, known as a title loan extension, is available to all borrowers who have paid off at least 20 percent of the loan balance.

A Recap of Title Loan Benefits

Title loans in Tinley Park are a popular option for borrowers who find themselves suffering from a momentary financial hardship. Because these loans are repaid in just a few weeks, and offer almost immediate extra money to borrowers with the most need, they can help take care of unexpected expenses and emergency situations.

Better yet, title loans in Illinois require no long-term installments or extensive financial planning. That makes title loans accessible to the vast majority of Illinois residents. With easy extension options and state regulation of interest rates, even the cost of short-term loans won't overwhelm borrowers who are getting back on their feet.