Key Takeaways about title loans in Peoria, Illinois
What are title loans?
Title loans are a type of high-interest, short-term loans that are sometimes taken out if immediate cash is needed. The borrower offers their vehicle's title as collateral in order to secure the loan. If the borrower is not able to repay the loan within the agreed-upon time frame, the lender can claim the vehicle and sell it to recover their funds. Because of their high interest rates and potential for making a borrower's financial situation worse, title loans are often viewed as predatory lending practices.
Are title loans legal in Springfield, IL?
Yes, title loans are legal in the state of Illinois and are capped at 36% annual percentage rate (APR). It's important to keep in mind title loans are not even legal in some states.
The Downsides of Title Loans in Springfield
While title loans can provide immediate financial relief, they carry substantial risks. The primary risk is the potential loss of the vehicle if the loan cannot be repaid. Additionally, title loans often have high interest rates, sometimes reaching up to 291% APR, which can make the debt difficult to manage.
What about payday loans?
Payday loans are a form of short-term, high-interest credit typically due on the borrower's upcoming payday. They are commonly for minimal amounts, for example ranging from $100 to $1,000, and are intended to supply immediate cash for urgent costs.
Like title loans, these types of loans can have high rates, short repayment periods and can lead to a cycle of debt, so it's important to understand this loan option well.
Links of interest
- CFPB Orders TitleMax to Pay a $10 Million Penalty for Unlawful Title Loans and Overcharging Military Families
- Troops will get part of a $5M settlement in alleged title loan scam
- CFPB on title loans
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Alternatives to title loans in Peoria, Illinois
Considering the potential pitfalls associated with title loans, it's worth exploring alternatives:
- Payday Alternative Loans (PALs): Some credit unions offer PALs, short-term loans with far lower interest rates than title loans. Membership of the credit union is generally a prerequisite to apply.
- Personal Loans: Despite having a low credit score, some lenders offer personal loans to such individuals. The interest rates may be higher than conventional loans but are generally lower than those of title loans.
- Credit Counseling: Numerous non-profit credit counseling agencies can provide guidance and resources to help individuals manage their debt and improve their financial health.
- Peer-to-Peer Lending: This is an alternative where borrowers can seek loans from individual investors or peers online. The interest rates are generally lower, and the loan terms can be more flexible.
- Secure credit card: consider applying for a secure credit card if you're unable to get an unsecured credit card. These types of cards can help you access funds as well as potentially build credit with responsible usage.
What's Yendo?
The Yendo Card
Yendo is the first credit card that's backed by the value of your car. The card can provide access to credit for those who might not be able to qualify for other credit cards. It's a real credit card, powered by Mastercard, that provides credit limits from $450 - $10,000, depending on your value of your car amongst other factors, that can provide people with access to ongoing funds. So, rather than having to re-apply for loans, for example, you can access funds up to your credit limit on an ongoing basis and, with responsible usage like on-time payments, build your credit too.
Features & benefits
- Credit limit - access up to $10k in credit
- App - the Yendo app let's you manage your account, wherever you are
- Virtual card - access a portion of your credit limit prior to getting your physical card in the mail with the Yendo virtual card. You can continue to use your virtual card even after your physical card arrives as well
- Cash advances - ability to do cash advances on your card
- Credit building - with responsible usage, you can not only have access to ongoing credit, but also build your credit for potential future financial options
Reviews
Check our review page for more detailed reviews from our users.
FAQs
Yes, Yendo helps you build your credit. We report to Experian, Transunion and Equifax credit bureaus.
Yendo Credit Cards have credit limits ranging from $450 up to $10,000. Your credit line depends on the make, model, mileage, and condition of your vehicle in addition to your ability to repay.
You have 25 days after the end of your monthly statement to make a payment. You can make payments at anytime, and you will need to make a minimum payment of 5% of your statement balance or $50 (the greater of). We're here to help, so if you do need assistance making your minimum monthly payment, please give us a call.
We don’t check credit for pre-approval and you can get approved if you meet our approval criteria. Our mission is to offer affordable credit access to everyone, regardless of their credit score.
Yendo customers can have access to their virtual credit card within 30 minutes of completing the approval process. The virtual card can be used online or with Apple, Google, or Samsung pay. A physical card will be mailed to you and typically arrives in 5-7 days.
We will always work with you to try to establish a plan that works with your situation. However, as a lienholder, we can exercise our right to recover an outstanding balance, but this is our last option. Keep in mind that with Yendo, your minimum monthly payment can be more affordable compared to other alternatives like title loans.
You can get your title back at any time by paying off your balance and giving us a call to close your account. Once we verify that your balance is $0, Yendo will close your account and remove its lien from your title. We will then release the title to you. Or you can keep your account open with a $0 balance and pay no interest, so you can have continued access to your credit card when or if you wish to use it.
While your official due date is 25 days after receipt of your previous monthly statement, you can pay off all or a portion of your balance in advance at any time. The best part? If you pay your statement balance on or before the due date every month, you’ll pay zero interest on purchases. In the event you don’t pay off your full balance, our minimum payment is 3% of your statement balance or $50, whichever is greater. Please note that penalties, such as late fees, may increase your minimum payment requirement.
If your balance exceeds your credit limit, your account is overlimit. You will need to make a payment that brings your balance below your credit limit and make at least a minimum payment to unblock your card.
