Wisconsinites are tightening their belts all across America’s Dairyland as interest rates and inflation continue to rise. Whether you live in Madison, Racine, La Crosse, or the heart of Milwaukee, the story’s the same, especially if your credit score means lenders aren’t exactly jumping at the chance to let you borrow money.
There is hope, though. A title loan could be exactly what you need to get through that tough financial spot.
What is a title loan?
Not sure what a title loan is? It’s a type of secured loan, unlike credit cards and personal loans. It’s closer to an auto loan or a mortgage since the value of the car or home is the basis for the loan itself.
However, unlike mortgages and car loans, there is no credit check required for a title loan. It’s based strictly on the value of the car and your ability to repay the money borrowed. Furthermore, the interest rates tend to be high and you risk losing your car if you're unable to repay.
Wisconsin title loan requirements
Like all types of loans, title loans have a few requirements. They’re pretty minimal, you'll need:
- A Wisconsin driver’s license or state-issued ID
- A lien-free vehicle title
- Proof of income
- Proof of residency in Wisconsin
- A running vehicle
In addition to those simple requirements, you will also need to be 18 years old or older and you cannot be an active-duty member of the US military.
The title loan process
How do you get funding through a title loan? Unlike other products, these loans are straightforward. You’ll need to follow six basic steps:
The first step is to complete the online application. You’ll need to provide some basic information about yourself, your job, and your vehicle.
After you apply, the lender will verify the information you submitted. This usually takes very little time.
Title loan lenders base part of their decision and the amount to offer on the condition of the vehicle. Some lenders allow you to send pictures as proof, but others require an in-person, same-day inspection.
After inspecting the car, the lender will make an offer. You’ll read over the agreement and, if you want to move forward, sign it, and send it back.
Once you’ve submitted the signed agreement, the lender will deposit your funds into your bank account.
You’ll follow the lender’s schedule (outlined in the agreement) and repay the loan over time. Once your loan is paid in full, you will get your title back from the lender.
How title loans are regulated in Wisconsin
Title loans in Wisconsin are currently regulated under Wisconsin Statutes § 138.16 et seq.
Title loans are legal in Wisconsin. However, the state sets specific limits here. For instance, the maximum loan term is 180 days. The maximum loan amount is $25,000 and the minimum is $100. Lenders are also limited to changing no more than 25% per month in interest.
Cost considerations and title loan alternatives
The cost of a title loan in Wisconsin is dependent on your loan amount and your APR. Here are a few examples to help illustrate the true cost of a title loan.
- Example 1: You borrow $1,000 at an APR of 300% and pay it back in 30 days.
If you took out a $1,000 loan and paid it back in 30 days, you would pay a total of $1,250 back to your lender in 1 payment. In this example, you’re paying $250 in finance charges to borrow $1,000.
- Example 2: You borrow $1,000 at an APR of 300% and pay it back in 6 months.
If you borrowed $1,000 and paid it back in 6 months, you would pay a total of $2,032.92 back to your lender in 6 payments of $338.82. In this example, you’re paying $1,032.92 in finance charges to borrow $1,000.
Personal installment loans: A better and more affordable way to borrow money with bad credit
All title loans come with higher-than-usual interest rates. And because your car is the security for the loan, not being able to make your payments might mean losing the vehicle. Thankfully, there are alternatives to title loans, even for people with bad credit.
For instance, personal installment loans for bad credit borrowers allows you to access between $200 and $3,000 and then repay that amount in installments. While your credit score is checked, these types of loans are specifically offered to people in your situation.
Frequently asked questions
Here are some of the most commonly asked questions that we get regarding Wisconsin title loans.
Can I qualify for a title loan with bad credit?
Yes! You can qualify for a title loan with bad, low, or no credit. Your credit score plays no role in the lending decision. Instead, it’s based on the value of your vehicle and your ability to repay the loan.
Can I get a title loan completely online with no credit check and no inspection?
Yes! You can apply for a title loan completely online without having to check your credit. However, inspections are required. Your vehicle’s condition affects the amount the lender will loan you or whether they will offer a loan in the first place.
Will I receive the funds from my title loan instantly?
That depends on when you complete the process (including the inspection). Most people who complete the process by 2 pm EST receive their money the same day.
Do you offer car title loans near me?
Yes! We offer title loans nearby through direct title loan lenders in many cities in Wisconsin, including:
- Beaver Dam
- De Pere
- Eau Claire
- Fond du Lac
- Green Bay
- La Crosse
- New Berlin
- Oak Creek
- South Milwaukee
- Stevens Point
- Sun Prairie
- West Allis
- West Bend
- Wisconsin Rapids