The Beginner’s Glossary Of Car Title Loan Terms And Definitions

If you’re new to title loans, you’ll come across terms you may not recognize. This beginner’s glossary from Wisconsin Auto Title Loans, Inc. breaks them down so you can understand how title loans work and apply with confidence.

Learn what title loans are and other terms that you may come across during your research or during the title loan approval process. After you understand these terms, you can proceed and get approved without confusion.

Car Title Loan Glossary: 7 Terms You Need To Know Before Applying

You should do your research before borrowing a loan, and a title loan is no different. There are terms you will encounter during the approval process that you must understand to avoid confusion. These title loan definitions for beginners can help if you are applying for the first time.

Here are seven terms you need to know before applying for a title loan:

1. Title Loan

A title loan is a secured loan that lets you use your car’s title as collateral to borrow up to $15,000 for financial emergencies. The value of your loan will depend on your car’s value. We will inspect your car to determine its value based on its age, make, model, condition, mileage, and maintenance history.

Here’s how title loans work: you bring your lien-free vehicle title to one of our stores, and we will place a lien on it. This allows you to borrow money to pay your urgent costs. You can then repay the loan over a few weeks or months. Once it’s fully repaid, we will remove the lien.

2. Collateral

The next term you should understand for a car title loan is collateral. If you're new to secured loans, collateral simply means you're using a personal item to secure the loan. When a loan doesn’t require collateral, it is called an unsecured loan. For our loan, we use the vehicle’s lien-free title as collateral.

We call this a title loan because we are just interested in the title. This means that if you are approved for the loan, you won’t have to give up your vehicle and leave it with us. We are not holding onto your car while you repay the loan. Instead, we will place a lien on your title and hold onto it until you repay. Once you’ve repaid, we will remove the lien and safely return your title to you.

3. Lien-Free Title

You’ll need several items to get a title loan, including your car title. When we say car title, we don’t just mean any car title will do. The car title you are using must be completely lien-free, which means that there are no outstanding judgments or debts against your car’s title. If you aren’t finished paying off your vehicle and there is an outstanding lien on your title, then you won’t be able to get a title loan with us.

Clear up your debts and make sure your car title is lien-free at the DMV before you try to get a title loan with us. You’ll also need to make sure your car title is in your name. We can’t accept the title if your name doesn’t appear anywhere on it, as proof that you are the owner of the vehicle. If it doesn’t have your name, you’ll also need to have it changed at the DMV before you come see us for the loan.

Here are the rest of the required items for a title loan in Wisconsin:

• A driver’s license or state-issued ID that displays your full name, photo, and date of birth
• A lien-free vehicle title in your name
• Your vehicle for a quick inspection

4. Online Inquiry Form

This is the form on our website that you can use to apply for a title loan. It will take just a few moments for you to fill out the loan. Once you submit it, we will receive your basic information, which we can use as a base for your application. Soon after submitting, we will call you to explain the rest of the process.

This is the information you will need to provide on our online inquiry form:

• Full name
• Zip code
• Email address
• Phone number
• Vehicle year, make, and model

5. Soft Credit Check

For loans at traditional banks, they will conduct hard credit inquiries to see what your credit score is and determine if you meet their high credit requirements. However, the credit bureaus are notified of this credit inquiry, and your score can go down as a result.

You will not have to worry about that with a title loan, as the loan is secured with collateral. You can get approved for a title loan with bad credit, but we may still conduct a soft credit check to see what your score is. This is a credit check that the credit bureaus will not be notified of, so your score won’t suffer as a result.

6. Interest Rate

The interest rate is how much the cost of repayment will increase over time. Our title loans do collect interest, which can gradually increase how much you have to repay. For that reason, we suggest you repay title loans as quickly as you can.

The longer it takes you to repay your car title loan, the more expensive it will be. We don’t have a set schedule for when we expect repayment, so you can repay it right away if you can. However, it will have to be repaid in a few months either way, so make sure you can repay the loan amount you borrow.

7. Default

Failing to repay your loan means you can default on your loan. This will only happen if you fail to make multiple payments in a row. If the creditor (us, in this case) feels you cannot afford repayment after multiple missed payments, they can report it as default to the major credit bureaus.

This can have a major effect on your credit score, and you can lose your car. We may repossess your car to make up for the value lost by your failure to repay the loan on time. Before borrowing, make sure you can afford repayment to avoid losing your vehicle.

How To Get A Title Loan In Wisconsin

Now that you understand more title loan terms, you can begin the process. As long as you have the required items we mentioned above, you have a good chance of getting approved. You will only need to complete a few steps to get approved, all of which can be done the same day you apply. After beginning the process online, you can finish at one of our Wisconsin store locations in under 30 minutes.

Here is the approval process for auto title loans in Wisconsin:

• Fill out our online inquiry form with your basic details
• Speak to a loan specialist over the phone about title loan terms
• Bring your required items to the nearest Wisconsin branch for verification
• Have your vehicle inspected for its value
• Sign the loan agreement to complete the process
• Receive your title loan cash later the same day or by the next business day

Get Approved For A Title Loan In Wisconsin – Receive Up to $15,000 Today!

Need fast financial relief for an emergency expense? The friendly representatives at Wisconsin Auto Title Loans, Inc. can help with our simple-approval title loans. We will walk you through the whole process and explain anything you don’t understand. Get approved for a title loan today, no matter your credit score. Fill out our online title loan form and visit us in person for approval in under 30 minutes!

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.