Compare your loan options in Wisconsin

Payday loans are permitted in Wisconsin, but the state regulates how much lenders can fund and what fees they can charge.

What are the payday loan laws in Wisconsin?

Payday loans are legal in Wisconsin. Wisconsin Statutes 138.14 controls payday lending.

Under Wisconsin law, you can’t borrow more than $1,500 or 35% of your gross monthly income, whichever is less. All loan terms are limited to 90 days, but you are able to refinance (roll over) your loan one time. After this, you’ll be required to pay back the total amount of both loans.

You can have any amount of payday loans at once provided the total is less than $1,500 or 35% of your monthly income. However, it’s important to note that the more payday loans you have out at once, the more you may have to pay in interest.

How much will a payday loan cost me?

There is no limit to the maximum finance rate, meaning Wisconsin lenders can charge however much they’d like in the form of fees and interest.

If you default on your loan, a lender can charge you 2.75% per month in interest until you fully repay your loan. Lenders can’t charge any fees if you pay your loan early, default or make a late payment.

A lender can only attempt to cash a check or withdraw money from your bank account once. If you don’t have enough money in your account, a lender can charge a $15 non-sufficient funds (NSF) fee.

Before you sign a contract, read the terms carefully. Your loan contract will list the total cost so you’ll know exactly how much you’ll have to pay for what you borrow.

How do I apply?

Although all lenders have different applications, you’ll need to meet some basic eligibility requirements before you apply. You should have a regular source of income, be a US citizen or permanent resident and be at least 18 years old.

Most lenders will ask for

• Your name
• Your date of birth
• Your email and phone number
• Your address
• Your Social Security number
• Your employment status and income
• Your bank account numbers

This is to confirm your identity and make sure you have the ability to repay a loan.

Alternatives to payday loans in Wisconsin

If you’re having trouble paying for everyday bills, Wisconsin has programs to help when you’re facing financial hardship. For instance, the Wisconsin Home Heating Assistance Program or the Home Weatherization program can help you when your energy bills are too high.

Look for other assistance programs that will help you handle expensive everyday expenses so you can pay down your debts.

Cheaper credit options and local resources to consider

Bottom line

When you’re in need of cash, a payday loan could be a way to afford an unexpected bill or a gap in your budget. These are short-term options designed to get your through to your next payday, not long-term financial solutions. As long as you know the whole cost of the loan and can afford it, a payday loan can be a solution to a money problem.

What else should I know about payday loans in Wisconsin?

• Can I get a repayment plan if I can’t repay my payday loan by its due date?

  Yes. Once every 12 months, you can get a repayment plan where you’ll be able to pay the outstanding balance of your loan in four equal installments.

• Where can I go to file a complaint about a payday lender?

  You should contact the Wisconsin Department of Financial Institutions if you have a problem with a lender or the terms of your loan.

• Can a lender pursue criminal action against me?

  No, but Wisconsin lenders may be able to sue you for debts owed. This won’t result in jail time, just court-mandated fees.

• How long do I have to wait between loans?

  Wisconsin law requires that you wait at least 24 hours between payday loans.