Most people who use a title loan want to do so responsibly and avoid getting into debt. After all, who wants to take out another loan when you don’t have the money to repay it? But with how expensive it can be to own a car, let a friend or family member use your vehicle, or get to work every day, sometimes having access to quick cash is necessary. Getting a Title Loan in Wisconsin is similar to getting an additional line of credit. You will need sufficient savings as well as good credit in order to qualify for one. On top of that, you will also need the funds available from selling something of value — such as your car, anything valuable you have such as jewelry or art work, and/or any other personal property you own — so you can afford the amount needed for the loan itself and its repayment over time. Below we’ll explain what you need in order to apply for a Wisconsin Title Loan and what lenders look for when making their approval decisions.
What Is a Title Loan?
A title loan is unsecured debt obtained from a financial institution that you use to borrow money. You take out a document of ownership called a “mortgage” which allows the lender to seize (or “chase”) your assets in the event you don’t repay the loan. They will take the first item of value you have that is sufficient to pay for the amount of the loan.
This means someone with a car might get a $5,000 loan with the lender able to take the car if you default. The lender will allow you to repay the loan over time, usually at a higher interest rate than a payday loan or cash advance.
How to Apply for a Title Loan in Wisconsin
In order to get a Wisconsin auto title loan, you must apply directly to a lender. There is no central place to find these lenders, so your best bet is to contact an auto dealer or financial institution in your area that offers title loans. You can also search online for lenders in your area but beware of scams!
The application process will vary depending on the lender you choose and the type of loan you want. You will be asked to provide information such as your income, how much you currently have in savings, and the value of the items you are selling in order to fund the loan.
Things You’ll Need to Apply for a Title Loan in Wisconsin
-Loan amount: This is the amount you’ll need to borrow in order to pay for your loan and repay it over time. This amount will always be stated as a dollar amount, so you can easily keep track of your debt.
-Loan period: This is the length of time for which you’ll need to repay the loan. In Wisconsin, most loans are for 48 months with a 36-month period added on for the last two years of the loan.
-Terms: This is the percentage of the loan amount you’ll need to pay upfront and the amount you’ll pay over the life of the loan.
How Much Can You Get from a Title Loan?
Lenders set the interest rate on a Title Loan. This is usually a higher rate than a credit card, which makes the cost of money worth paying. Most lenders in Wisconsin charge between 12% and 18% interest per year on a $5,000 loan.
Repayment and Fees on a Title Laoan in Wisconsin
-Repayment: This is the amount you will be paying over the life of the loan and will be either $500 or $1,500 depending on the loan period. This is the amount you will pay on a monthly basis or over the course of 36 months.
-Proration fee: This is the amount you’ll be charged if you take out a $5,000 loan and the lender takes your car. This fee is only charged once per loan amount, so you won’t be charged again if you take out a second loan. The amount charged will vary by lender based on their own policies.
-Lien fee: This is the amount you’ll be charged if you take out a loan with a lien on your property. This fee can only be charged once per loan amount and is usually only charged by a few lenders.
Wrapping Up: Is a Title Loan Right for You?
Wisconsin auto title loans are a great option for short-term financing. If you need a few hundred dollars for a car repair or some weekend away from the kids, a title loan can provide you with the funds to get it done. Contact us today to get started.
