A car title loan can be the right financial resource to help borrowers get back on their feet after an unexpected expense. Many borrowers will use a title loan to cover expenses like surgery costs, car repairs, or even rent for the month. If the first title loan was not enough to get where you need to be financially, you may be looking to apply for a new title loan.
If your first title loan experience is over, you might be asking yourself: Once I pay off my car title loan, when can I apply for another? The experts at ChoiceCash Title Loans have the answers waiting for you!
Can I Apply for Another Title Loan if I Already Have One?
This is a common question asked by borrowers that need extra cash while they are paying off their car title loan. If you are looking to apply for a second title loan while you are in the process of paying off your first, it is possible. However, there are a few requirements. To apply for a second title loan while you are paying off your first, you must have a second qualifying vehicle in your name. Only one title loan is permitted per vehicle, as the title of the vehicle is collateral for a title loan. One title cannot be used as collateral for more than one loan!
If you are a borrower of a ChoiceCash Title Loan, you may have the opportunity to refinance your funding while you are paying off your first title loan.1 This may be a better option over getting a second title loan. As long as you are keeping your first title loan account in good standing, you may get the opportunity to apply for more funds while you are in the repayment process of the first title loan with ChoiceCash Title Loans.
If I Pay Off My Car Title Loan, When Can I Apply for Another?
Once your first title loan is paid off there is a lot to celebrate, and a few events will happen afterwards.
First, your lender will remove the lien on your car’s title and send it back to you, lien-free. The lien was your lender’s legal right to your vehicle while it was collateral for the loan. The removal of the lien indicates that the vehicle is now solely yours to sell or keep as proof of ownership.
Typically, your title will be returned to you in 15 business days or less, depending on the lender. Once your title is in your hands, lien-free, you can apply for another car title loan easily! As long as your vehicle is still eligible for a car title loan, you could qualify for the emergency cash you need in just a few minutes with ChoiceCash Title Loans.1
Can I Apply for Another Car Title Loan if My Credit is Poor?
The first question on your mind may be, “once I pay off my car title loan, when can I apply for another?” After you have your title back and you are ready to apply for the loan, the next question may be about your credit history. If your credit is not up to par, you may not qualify for many different traditional loan options. Traditional loan options like bank loans or unsecured personal loans will use your credit history to determine if you are too much of a risk to lend to.
Luckily, perfect credit is not needed to apply for another car title loan. While your credit history may be considered during the title loan approval process, it will not be the focus.
There are two major factors that will be looked at with much more scrutiny than your credit:
- The Value of Your Car as Collateral
- Your Income and Ability to Repay the Loan
With a title loan, your collateral is the most important part of the loan, and it will take away some of that risk during the approval process.
Your eligibility for a loan and your loan amount will depend on your car’s value and your income. The higher the equity in your car and the higher your income, the higher your loan amount potentially can be.1
During the approval process, a loan agent will take a look at your loan inquiry and documents. From there, they are able to decide what your title loan amount will be and what you can afford to repay based on the value of your vehicle.
While your poor credit history may stop you from qualifying for an unsecured loan, a title loan can be different. Title loans are secured through using your vehicle’s title as collateral. This makes the approval process much more flexible and convenient for you, even if you are not confident with your credit history!1 Title loans were created to be an alternative loan option for borrowers from all different kinds of financial backgrounds and credit histories.1
Should I Refinance My Car Title Loan Instead of Applying for Another?
Instead of applying for a second title loan, one of your options could be to consider refinancing your current loan. Refinancing a car title loan can be advantageous for many different reasons.
Some of the most common reasons why a borrower will refinance their loan are:
- Better Loan Terms: If your current loan terms and interest rates are not what you expected, refinancing your current title loan is an opportunity to change these loan terms and receive better ones for your budget.
- More Affordable Payments: When your loan terms change, the affordability of your monthly payment can change as well. Competitive interest rates can mean lower monthly payments that are better for your budget.
- Save Money in the Long Run: By refinancing your current title loan, you could receive better interest rates, which leads to more affordable monthly payments.
- More Time to Repay: Better loan terms can include more time to repay your loan! When you refinance with ChoiceCash Title Loans, you could have more time to repay your loan and competitive interest rates that suite your budget.1
What Documents Do I Need to Provide to Apply for Another Car Title Loan?
If applying for another car title loan or refinancing your current loan is the best option, a couple documents will come in handy during the approval process. These documents can help a loan agent determine whether or not you are qualified for a second car title loan or title loan refinancing.
Since these documents verify your information, they speed the approval process along and keep it streamlined for your convenience. You can expect to need:
- Proof of Income: Your income will determine what your loan amount will be and what you can afford for a monthly loan payment. A traditional 9-5 job is not needed to apply for a car title loan, but you will need to provide some proof that you can afford a loan payment each month. Typically, most future borrowers will use their bank statements, pay stubs, or even pension income statements as proof.
- Proof of Address: Your address is another piece to the puzzle that is required during the approval process. Most future borrowers will use utility bills or recent credit card statements to prove their address, but other documents like rental agreements will do.
- Photo ID: This is the easiest document to provide for most borrowers, as it is usually found in a wallet. A government or state-issued photo ID is needed when you apply for a title loan. A driver’s license, passport, or even a military ID can be used.
- Car Title: The most important document that is needed during the approval process is the vehicle’s title. To qualify for a car title loan, the vehicle title must be in your name.
- Recent Photos of the Car: With loan options like ChoiceCash Title Loans, you can skip an in-person inspection simply by submitting a few photos of your vehicle. Take a couple pictures of the back, front, and sides as well as the odometer. A loan agent can take a look at these photos and assess the current value of your vehicle.
After I Pay Off My Car Title Loan, Where Can I Apply for Another?
Once your vehicle title is in your hand, applying for a car title loan can be hassle-free! With ChoiceCash Title Loans, qualified borrowers can access the online approval process and get their cash in just one business day.1