What a title loan costs — before Wisconsin’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Wisconsin
- Rate cap
- No cap on interest before the loan's maturity date. After maturity, interest is limited to 2.75% per month. A title loan is capped at $25,000, a term of no more than 6 months, and principal liability no greater than 50% of the vehicle's retail value.
- Key law
- Wis. Stat. Sec. 138.16 (Title loans).
- Enforcement
- Licensed and regulated by the Wisconsin Department of Financial Institutions (DFI). Wisconsin is widely cited as one of the least-restrictive states because it imposes no ceiling on the finance charge before maturity.
Wis. Stat. Sec. 138.16 sets no cap on title-loan interest before maturity (only 2.75%/month after), and limits loans to 50% of the vehicle's retail value.
What it means for a Wisconsin borrower
Auto title loans are legal in Wisconsin and there is no limit on the interest charged during the loan term, so APRs are very high. The loan cannot exceed half your car's value or a 6-month term, and after the due date the rate is capped at 2.75% per month. Wisconsin's rules are among the most lender-friendly in the country.
Before you borrow in Wisconsin
- Check whether the lender is licensed in Wisconsin — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Wisconsin attorney general and the CFPB.
- Ask whether the balance is even collectable under Wisconsin law before you pay a collector.
Cheaper first — try these before a title loan in Wisconsin
Title Loans and tribal lenders in Wisconsin
Many online lenders that market title loans to Wisconsin residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Wisconsin residents and how state law applies to them, see the Wisconsin tribal-lending page.
Tribal loans in Wisconsin →Frequently asked questions
Are title loans legal in Wisconsin?
In Wisconsin, single-payment auto title loans are legal and enforceable, commonly around 300% APR, with the car as collateral. The speed is real; so is the repossession risk. Check the total cost and never pledge the car you rely on to get to work.
What is the maximum title loan rate in Wisconsin?
No cap on interest before the loan's maturity date. After maturity, interest is limited to 2.75% per month. A title loan is capped at $25,000, a term of no more than 6 months, and principal liability no greater than 50% of the vehicle's retail value.
What can I do about a title loan I already have in Wisconsin?
Wisconsin allows this lending, so the loan is generally enforceable — but you can still revoke ACH authorization in writing, avoid taking a second loan to cover the first, and file a complaint with the Wisconsin attorney general or the CFPB if the lender breaks the rules.