Should You Apply For A Title Loan?
Although a Title Loan is a good financing option for a difficult life situation, it still comes with certain risks. That is why you should weigh the pros and cons before applying.
What Is A Title Loan and How It Works
Title Loan is a simple secured type of financing that requires an asset as collateral. Most often, it is the car that is the collateral for the loan. Thus, the borrower needs to give the title of the car to the lender at the time of repayment of the debt. He will be able to get it back when the loan amount with interest is fully repaid. It is also important to note that the borrower must fully own the title of the vehicle in order to be eligible to apply for financing. Most often, title lenders offer from 25% to 50% of the value of the car as a loan.
Wisconsic title loan works as follows: the borrower chooses a lender and applies either online or in the lender’s shop. If he wants to get completely online financing, then he will not need to go to the lender’s shop in order to undergo a physical vehicle inspection. Instead, the lender will request high quality recent photos of the vehicle. After the specialists evaluate the car, they will offer the borrower the loan amount that he can get. If he is satisfied with the terms of the loan, he can sign a contract and receive money directly to his bank account. Next, he will need to repay the loans on time in accordance with the terms of the contract.
Requirements To Get A Title Loan In Wisconsin
Surely you know that in order to receive financing, you must meet certain eligibility criteria of the selected lender. They may vary depending on the state and its laws, but the main ones remain the same. Learn the main ones and make sure you are eligible to apply:
• Be a US citizen or official resident who is at least 18 years old
• Have a regular monthly source of income
• Have an active bank account
• Provide ID
• Provide an active bank account
• Provide a social security number
You must also provide documents for the vehicle, such as original vehicle title with solo ownership, current registration, government issued identification matching the name on the title, insurance proof and proof of residency matching the name on the title.
Important! You should note that most title companies in Wisconsin will accept your vehicle only if it’s not past a certain number of years.
Wisconsin Title Loan Main Information
If you want to apply for and receive a Wisconsin title loans near me no credit check, you should be aware that this state has some restrictions regarding Title Companies.
First of all, it is important to pay attention to the fact that this type of financing was not always legal. The government has understood that Title Loans have extremely high interest rates, making it difficult for the people of the state to repay them. Because of this, they have more and more debts that are almost impossible to cope with.
Title Loans are now legal in Wisconsin. However, lending companies still need to comply with a few simple rules. Below you can explore the main ones.
Wisconsin Title Loans Fees And Restrictions
So, first of all, it is worth noting the amount that a company can charge for a title loan in Wisconsin. Here it is up to 50% of the cost of the car, or $25,000.
The repayment terms of the Title Loan also has its limitations. In Wisconsin, the maximum term is 6 months. Thus, when the title loan limit is reached, the borrower must repay the balance of the loan.
If the borrower cannot repay the remainder of the loan, he can receive an extension of the loan in Wisconsin, but he will have to pay higher interest.
How Much Does a Title Loan Cost in Wisconsin?
Of course, most Wisconsin residents want to know the answer to the question of how much a Title Loan costs. However, it is very difficult to answer unequivocally, since the state of Wisconsin has no limits on the amount of interest that a lender can charge. Thus, if you want to apply and get title loans near me no credit check, you should be prepared for the fact that this or that credit company may charge quite a large percentage.
You may be aware that it is because of high interest rates that some states have abandoned Title Loans altogether. Most often, interest rates on a Title Loan are around 25%, however some companies may charge 30% interest or even higher.
What If You Can’t Repay Your Title Loan In Wisconsin?
As you know, the Title Loan is secured, so you will face some risks if you decide to apply for funding. If you fail to pay off your loan on time, the lender or loan company will be able to repossess your car.
Thus, after the lender takes your car, he can sell it in order to consolidate the debt on the loan. However, the state of Wisconsin has some advantages because under its repossession laws, the loan company will have to give you 20 days before repossessing your car. This way you can get some time to find money and make payments before your vehicle is repossessed.
So, before you apply for a Wisconsin Title Loan, make sure you can actually pay off your debt with interest on time. Otherwise, you will be dealing with additional interest rates, commissions and fees, and possibly losing your car.