Payday Loan 
Title Loan 
Personal Loan 
Business Loan What You Need to Know About Title Loans in Vermont, Illinois
Title loans have become increasingly popular in Illinois, and it’s easy to see why. With their quick approval process and minimal requirements, they’re an attractive option for borrowers who need cash quickly. But what are title loans, and how do they work in Vermont and Illinois? In this article, we’ll provide a comprehensive overview of title loans in both states, along with some interesting facts and statistics.
What Are Title Loans?
Title loans are short-term loans that use your car’s title as collateral. In other words, you borrow money against the value of your car, and if you don’t repay the loan according to the terms of the agreement, the lender can take possession of your vehicle. Title loans are typically easier to obtain than traditional bank loans because they don’t require extensive credit checks or a lengthy application process. Instead, all you need is a car title in your name, proof of income, and a valid ID.
Are Title Loans Legal In Vermont and Illinois?
Title loans are legal in Illinois, but they are prohibited in Vermont. In Illinois, the maximum loan amount is $4,000 or 50% of the borrower’s monthly income, whichever is less. The loan term can range from 15 to 45 days, and if the borrower can’t repay the loan, they can roll it over up to six times. However, each roll-over comes with additional fees and interest, which can add up quickly.
On the other hand, title loans are illegal in Vermont. The state has strict laws prohibiting title lending, which has led to a shortage of lenders operating in the area. If you live in Vermont and need a title loan, you may have to look for alternative options or travel to nearby states where they’re legal.
How Do Title Loans Work in Illinois?
To qualify for a title loan in Illinois, you must be at least 18 years old and own a car with a clear title in your name. You’ll need to provide proof of income, such as a pay stub or bank statement, to show that you can repay the loan. If you meet the lender’s requirements, you’ll sign a loan agreement that outlines the terms and conditions of the loan, including the interest rate, fees, and repayment schedule.
Keep in mind that title loans in Illinois can be expensive. Lenders often charge interest rates that are much higher than traditional loans, and the fees can add up quickly. According to a report by Pew Charitable Trusts, the average title loan borrower in Illinois pays $1,200 in fees alone for a $2,500 loan, and the average interest rate is 200%.
Interesting Facts and Statistics About Title Loans in Vermont and Illinois
– In 2019, Illinois had 535 title loan storefronts, making it one of the largest title lending markets in the country.
– Title loans account for approximately 73% of the total business of loans in the state of Illinois.
– The average title loan in Illinois is $1,042.
– According to a report by the Center for Responsible Lending, the title lending industry extracts $537 million a year in fees from Illinois consumers.
– Vermont is the only state in New England that prohibits title lending.
– Title lending is a $5.2 billion industry nationwide, with more than 1.7 million car title loans made each year.
Apply Now
If you need cash quickly and are considering a title loan, TheGuaranteedLoans can help connect you with potential lenders. We are a connector service, not a direct lender, and our goal is to help you find the best loan option for your needs. Fill out our online application today to get started.