A car title loan in Wausau, WI is a secured loan with a car as collateral. You keep your car over the repayment period of the loan, though, as the lender only has your car title. Approval for a title loan and the value of the loan depend on your car, so your credit doesn’t play a part. In Wisconsin, lenders are allowed to issue title loans for up to 50 percent of a car’s value, up to a maximum of $25,000. The state doesn’t put a cap on title loan interest rates, and it limits title loan terms to six months. However, the standard time frame when it comes to title loan terms is 30 days.
If you aren’t able to pay back your title loan on the due date, there is the option of extending it, which is also known as rolling over the loan. You must pay at least the interest on the loan to do this, and then you carry the unpaid loan principal into a new term with another interest charge. This buys you some more time to pay back your loan if money is tight. Failing to make your title loan payment means that you’ve defaulted on it, which gives the lender the right to repossess your car and then sell it to make back whatever you owed on the Wausau title loan.
Lenders will often work with you if you’re having payment troubles, so it’s smart to contact your lender immediately if that’s the case. You may be able to find another option, such as rolling over your loan, so the lender doesn’t come repossess your car. The good news for borrowers is that even if the amount of a car sale doesn’t cover what was owed on the title loan, the lender can’t bill the borrower for the remaining deficiency balance. If the amount of the sale was greater than the amount owed, then the lender must send the borrower the amount.