Wisconsin Title Loan Laws

In the world of fast money, there’s a constant demand for short-term loans. Most of these loans are for small amounts, to tide over sudden cash crises. However, some borrowers turn to these loans in a different capacity: to fund large-scale purchases like cars or houses. This is called a title loan and it is not considered an extension of your savings account; it is more like borrowing from your savings account than from a bank. The ease with which you can borrow money from a friend will vary depending on where you live in the country and what type of lender you have available to you. However, if you need a quick loan that doesn’t come with the usual risks associated with debt, there are some places where you can go for one. In this article, we take a look at details about Wisconsin auto title loan laws so that you know what kind of lending institutions are available to lend money without requiring collateral.

Wisconsin Title Loan Laws

The Wisconsin legislature passed a law in 2009 deeming any business offering title loans as a money lender. This means that, unlike in other states, you can’t get a title loan without first getting approved by a bank. The law provides a few stipulations that should be noted if you want to get a title loan in Wisconsin. For one, you must be at least 18 years old and you must be able to repay the loan amount within 45 days. In order to get a title loan in Wisconsin, you don’t need to put down any collateral either. The loan amount you can get ranges from $500 to $2,500.

How to get a Title Loan in Wisconsin

There are a few ways by which you can establish a rapport with a Wisconsin lender and get a title loan. The first is to approach a creditor and offer to repay the loan amount. If you have a friend who is in need of a quick loan, you can ask him to approach the creditor and offer to pay back. However, be careful in this regard; if your friend doesn’t have the money to repay the amount, the creditor might approach him and cause him more trouble. The second way is to go to a title loan broker. A broker can help you locate a lender and guide you through the process of getting a title loan. Brokers are found online and in yellow pages.

Pros of Title Loans

Flexible Terms – Given that you don’t have to put down any collateral to take a title loan, you can take one that has terms that suit your convenience.

Flexible Repayment Schedule – Like most loans, you can choose the repayment schedule of a Wisconsin title loan.

No Credit Checks – Unlike in most other industries, Wisconsin title loans have no credit check.

No Bank Reputation Damage – Unlike in most other industries, a Wisconsin title loan doesn’t have any negative bank reputation. You can get a title loan without any repercussions on your credit score.

Cons of Title Loans

Higher Interest Rate – Given that you don’t need to put any collateral, a Wisconsin lender will charge you a higher interest rate for a title loan than for a similar loan from a traditional lender.

No Collateral – If you take a Wisconsin title loan, there is no collateral that can be seized and used to repay the loan. If you can’t repay the amount, you will have to enter into an installment plan.

Paying Interest Only Once – Unlike in some other states where a lender must report your payment of interest to the state comptroller, Wisconsin doesn’t have such a requirement.

Higher Risk of Getting Sued – Given that you are borrowing money without putting any collateral, you are at a higher risk of being sued if you can’t repay the loan amount. And, if you are sued, the lender might take your car, landline phone, or any other asset as collateral.


There is no denying that a Wisconsin title loan is a convenient way to get money fast. However, it has some drawbacks as well. Given that you don’t need to put down any collateral and you can take a loan of any amount, you are at a greater risk of not repaying the loan amount. And, if you can’t repay the amount, you will have to enter into an installment plan. But, if you are in a situation where you need money right away and don’t want to take any risks associated with traditional loans, you can consider a Wisconsin title loan.