Title Loans in Wisconsin: A Guide to the Application Process
Are you looking for emergency funding that is quick and safe? Want to borrow but do not have precisely perfect credit? Then apply for title loans in Wisconsin.
Put your vehicle up for collateral for some emergency cash.
They have the protections and ease of application to save you from your latest financial emergency.
What Is a Car Title Loan?
They have secured loans wherein you put your car as collateral in exchange for a fast cash loan.
The loan proceeds are gathered for use to answer a borrower's current emergency. From medical expenses, household purposes and repairs, etc.
All incidents need money quickly and can apply to many borrowers. Unlike other types of loans, they are much simpler to apply for.
FUN FACT: These title loans can also be called auto title loans, pink slips, title pawns, etc.
How to Apply for a Car Title Loan in Wisconsin
The title loans process can be boiled down to the following steps:
- Online Application: Submission of a Loan Inquiry Online or via the phone with a lender
- Identity Records: Documents that represent your identity as a Wisconsin resident and for verification
- Loan Approval: Await the loan approval process and get your cash on the next business day or even on THE SAME DAY. The lenders will send the money to your direct deposit.
All done through the 3-step process above. You can apply online anywhere in Wisconsin as a resident.
All one needs to do is head to any lenders' websites or call their phone numbers.
IMPORTANT NOTE: The money lent to you is up to your discretion on how it should be spent.
You can contact any of their available lender agents in Wisconsin from Monday to Saturday for explanations and financial help.
Required Documents and Other Necessities
Before one can even apply for a title loan in Wisconsin, one must have these basic documents ready:
- Clear vehicle title along with registration and insurance. MUST BE IN YOUR NAME
- Photos of the Car for evaluation
- Proof of Wisconsin residency via proof of address or Government-issued ID
- The Ability to Repay the Loan via payment stubs, bank statements, etc.
- Be at least 18 years old or older to apply
All these essential documents are to be gathered to get your cash quickly. However, some can still be under pending review before final approval is issued.
Wisconsin residents benefit from a quickened title loan process for their loan approval process. As quickly as the same day, they applied.
Aside from the conventional forms of repayability like a 9-5 job, there are other forms of qualifying income such as a disability income, retirement income, or self-employment.
Why Is Perfect Credit Not Necessary in Wisconsin?
Even during a harsh temporary financial reality, Wisconsin residents can count on title loans despite their lack of credit.
Title loans in Wisconsin welcome all financial backgrounds catered by their loan services.
Instead of a regular credit check, they instead look at the following:
- The Collateral's Value or a Vehicle's Equity
- Your Repayability via INCOME or ability to pay. Any form of income is accepted
A lender is more concerned with your car's equity than yours.
Think of your car's condition as the conditional approval for your subsequent influx of money.
Specific Advantages of Title Loans in Wisconsin
Each state has its set policies on how they handle its title loans.
Wisconsin has its specific benefits from its title loan services, from benefits due to residency to legal protections of the borrower, as listed here:
- Viable and Competitive Interest Rates: Competitive Rates on an industrial scale can lead to more savings on your title loans.
- Gradual Decreasing Payments: Punctual payments are rewarded with exclusive benefits such as a gradual decrease in your interest rates. You can get as low as 50 percent from your original rate.
- Acceptance of Bad Credit: With only your ownership or vehicle title on the line. Your previous credit history is mainly ignored, save for your proof of income.
- Lenient and Flexible Terms: Ease in paying your loan early or extending your deadline via refinancing or rollovers.
- Keep Your Car: They value your ability to drive and would not wish to hamper your ability to make payments. You keep it as long as you keep your payments punctual.
Indeed, the streamlined and easy-to-apply online services across Wisconsin allow for quick money-outs.
The funding time would be done by the next business day or the SAME DAY from the safety of your home.
Aside from gradually decreasing payments, borrowers in Wisconsin can also refinance with the newly earned lowered interest rates for more cash.
You can also calculate the equity of your car via call with your assigned loan agent/ potential future lender or online via an inquiry form.
The Dangers and Risks with a Car Title Loan
Even for a title loan in Wisconsin, there are still risks to consider when one has access to a loan.
The debt trap cycle significantly exacerbates the financial situation of those with very inconsistent incomes or without access to more fast money.
You pay more interest and fees than the money you borrow. Also, these title loans do not add to your credit limit or score.
Aggressive Rates and Expensive
Although the interest rates are low for title loans in Wisconsin, they are still aggressive in the long run.
With an Annual Percentage Rate (APR) of 300 percent, you add 25 percent of your loan amount that you need to repay eventually
EXAMPLE: Repay 1250 dollars for a borrowed 1000 dollars.
Debt Trap Potential
The problem with loans is merely paying off the interest and none of the principal.
The meager payments and increasing debt lead to a cycle of paying the interests to a principal that never lets you go.
EXAMPLE: You spent 500 dollars interest to borrow a principal of 1000 dollars in a 2-month term extension. However, the next rollover and interest paid will soon outweigh the money borrowed.
Despite all your careful planning, it is still possible for you to lose your means of transportation very quickly.
The investments can fail, and the economy is fickle; always remember this when you put your car on the line.
IMPORTANT NOTE: Borrowers in Wisconsin and other US states tend to pay more interest and associated fees than they can borrow, according to a 2015 report from Pew Charitable Trusts.
Legal Protections in Wisconsin
Federal laws don't regulate title loans but rather the unique jurisdiction of a state.
It's the responsibility of the Consumer Bureau for Financial Protection to have Wisconsin lenders only count those who demonstrate ability to repay as count as qualified borrowers.
Every rule and protocol regarding loans is by them.
Their regulations include:
- Interest Rate Cap: For a title loan in Wisconsin. The interest rate can't exceed 25 percent for a title loan in Wisconsin.
- Repossession Laws: Lenders have a right to sell the car as compensation for the missed loan in the event of a default.
- Consumer Protections: Makes sure that offered auto title loans have a repayment period and Wisconsin lenders keep detailed records of their transactions.
- Title Loan Lender Regulation: Any violation of law for a loan in Wisconsin leads to a fine of 1000 dollars.
SIDE NOTE: In some states outside of Wisconsin, title loan lenders cannot keep the surplus from selling the repossessed collateral.
Frequently Asked Questions
Even after successfully applying for a title loan, there are still questions such as "How much cash can I get?" or "What are my cash options in Wisconsin?"
Let's go over some things you may want to clarify.
How Can I Pay for a Title Loan in Wisconsin?
You can pay in person via registered general stores across Wisconsin. Please either contact or see the lenders' website for specific venues.
The following forms include:
- Single Payments: The lump sum is given within a standard term of 30 days.
- Installments: The more flexible option of payment that is paid within 3 to 6 months but with an increase in APR.
How Much Cash Can I Receive From My Loan?
Car title loans are secured loans whose value rests on their collateral or your vehicle's equity and repayability.
The value of auto title loans in Wisconsin amounts to around 25 to 75 percent of a vehicle's equity.
The MAXIMUM loan amount in Wisconsin amounts to 25000 dollars. In comparison, the MINIMUM loan amount would amount to around 100 dollars.
Factors to Consider
An auto title loan's available cash is based on the following factors:
- Type of Vehicle: They accept cars, trucks, and motorcycles. The ones offered in Wisconsin are usually the most common brands.
- Current Market Value: The vehicle year, model, style, interior/exterior modifications, and even mileage are factored into the vehicle's value.
- Car's Condition: The vehicle must be working and driver-safe. Any damages are factored in.
There are online title loan calculators, and the photos you provide help provide an estimation by the lenders.
Also, they have licensed inspection areas by the Wisconsin government for face-to-face evaluation.
Why Must the Vehicle Be Under My Name?
For title loans in Wisconsin, a vehicle title means ownership over the car.
After all, if it's not yours, then there is nothing to bargain with.
Transferring a vehicle title to another is just a simple visit to the Wisconsin Department of Motor Vehicles (DMV).
You'll need the following:
- Car Registration
- Forms of Payment for the Title Transfer (cash or credit)
- State or government-issued Photo ID
IMPORTANT NOTE: The Wisconsin Lending Laws require a clear vehicle title.
How to Extend My Loan Term in Wisconsin?
When you miss the due date of your title loan, you can request an exterior or rollover from your lender.
However, this is intended primarily as an act of good faith to Wisconsin customers. So don't rely too much on this leeway.
The average title loan term in Wisconsin is around 30 days. The maximum title loan term is around 180 days according to Wis. Stat. § 138.16.
Alternatives to Title Loans
If title loans aren't your cup of tea, there are other alternatives you can try out to keep your finances afloat.
- Personal Loans: A good option for those without lien or qualifying vehicle title, the most secured loans to get some cash fast. However, it needs better credit history and sometimes credit union membership.
- Payment Loans: The other recommended loan for those with a bad credit history. They also provide quick money but are not a substation to that of title loans.
- Co-signing: Sharing a loan application with another borrower, preferably someone with better credit. The risks are diluted and split amongst you, but so is the money.
- Tax Refund: You can use tax refunds to pay back title loans.
- Borrow from Friends and Family: Although embarrassing and humiliating, they are no more secure forms of funds than people you can rely on and trust. However, this "good will" must be paid back out of moral obligation.
What if I Have a Complaint Regarding My Auto Title Loan in Wisconsin?
Not all lenders treat their customers moderately or, at the very least, are incompetent. The worst-case scenario is fraud.
Like all institutions, there must be an avenue and channel to voice your complaints as a borrower.
So in case of such concerns, you may contact the Wisconsin Department of Financial Institutions via the online site or their phone number.
Unexpected expenses are a hindrance and burden many have to carry in life.
So having quick and easy to apply for online title loans in Wisconsin can be a much-needed lifeline.
All it takes is your car ownership and a drive to make back that loaned money.
So apply now to get your title loans.