What are Second Lien Title Loans, and How Do They Work?

At some point in your life, you may face an unexpected financial emergency and need extra money to get your finances back on track. A car title loan can be an option to consider if you need emergency cash! Title loans are secured by the title to a qualifying car or truck, and an eligible borrower can access up to 50% of their vehicle’s value by pledging their car’s title as collateral for the loan.1

Typically, when you apply for a title loan, you will need a clear title to a qualifying vehicle in your name. A clear title means that you are the rightful owner of the vehicle, and there are no liens or outstanding financial obligations against the vehicle. A lien on a car title is usually placed by an auto lender or a title loan lender. If you do not have a clear vehicle title, however, you may be able to apply for second lien title loans.

Essentially, with a second lien title loan, a second lien is added to your car’s title. In order to obtain a second lien title loan, you will need to find a lender that offers them, and your existing lienholder will need to give the second lienholder permission to place an additional lien on the title. Second lien title loans are not offered by all title loan lenders, but they could be an option to consider if you want to apply for a title loan without a clear title. If you are unable to find a lender who offers second lien title loans, some of your other options could potentially include applying for a title loan on a financed car or trying to refinance your current title loan!

Keep reading to learn more about applying for second lien title loans online. You can also visit the ChoiceCash website or call 855-422-7402 to learn more about title loans on financed cars or title loan refinancing!

How Can I Get Second Lien Title Loans Online?

2nd lien title loans are a little bit complicated, and they can be tough to find. If you can find a title lender who offers second lien title loans, you will need to submit an application online or in person. In some cases, you may be required to provide proof of the original lien during your loan application, so make sure to keep that document on hand.

Generally, the application process for second lien title loans online will look something like this:

  • Fill out an application: If you have found a title loan lender who is willing to work with you, the first step is to fill out a title loan application on their website and provide some basic background information. 
  • Submit the correct paperwork: Generally, you will need to submit a few different documents during the application process, including proof of income / residence and a valid, government-issued photo identification card.
  • Find out if you are approved: If you are eligible for a title loan and the second lienholder is given permission to place an additional lien on your car’s title, the last step of the application process is to sign your loan agreement.
second lien title loans

What Do I Need to Get Second Lien Title Loans Near Me?

You must meet a few initial requirements and submit some paperwork in order to obtain loan approval. The initial requirements for a title loan are:1

  1. Be 18 Years of Age or Older
  2. Be Able to Prove Your Ability to Repay the Loan
  3. Have a Title to a Qualifying Car in Your Name

Take a closer look at the some of documents you will need to apply for a title loan:1

  1. Valid, Government-Issued Photo ID: You can submit a valid driver’s license, passport, or another government / state-issued photo ID card during your title loan application.
  2. A Car Title: Typically, to apply for a car title loan, you will need a qualifying vehicle title in your name. If you are applying for a second lien title loan, however, your first lienholder will need to give the second lienholder permission to add a second lien to your car title. If the existing lienholder does not give the second lienholder permission to place an additional lien, you will not be able to obtain a second lien title loan. 
  3. Photos of the Car: Usually, if you are applying for an online title loan, you will need to provide a few recent photos of your vehicle to verify its value and overall condition. You can expect to need pictures of the front, back, and sides of the vehicle, as well as the VIN (Vehicle Identification Number) and odometer. In some cases, you may be required to bring your vehicle to a storefront location for a physical car inspection. 
  4. Proof of Income: You are required to provide proof of your ability to repay the title loan. Some applicants will submit recent pay stubs or bank statements to prove their income during their applications. In some cases, alternative sources of income can be accepted.
  5. Proof of Address: You can submit a recent utility bill, lease agreement, credit card statement, or mortgage statement to prove your current address.

Is it Possible to Get a Title Loan With a Lien on My Car?

Yes, it is possible to get a title loan with a lien on your car. If a second lien title loan is not the right fit for you, there are alternative options to consider. You can try to refinance your current title loan with a new lender or your existing lender.

If you are currently financing your vehicle, however, you could potentially apply for a title loan! As long as you meet the initial requirements and provide the correct documents, you can apply for a ChoiceCash title loan serviced by LoanMart – even if you are still paying off your car.1

However, if you have an outstanding loan on your car – whether a title loan or a loan from originally buying the car – the title lender may ask for your written consent to obtain a payoff quote and make the final payment on that loan with a portion of your title loan proceeds.

second lien title loans online

Where Can I Apply for 2nd Lien Title Loans Today?

Instead of using your phone or computer to type “second lien title loans near me” into the search bar on your web browser, you can try to explore other options! Many lenders do not offer 2nd lien title loans, so it can be a hassle to search for them online.

However, if you are trying to refinance your current title loan or apply for a title loan on a financed car, the application process can be simple.1 Go online or call a ChoiceCash title loan agent at 855-422-7402 to learn more!

Nooreen B.
Nooreen B.
Nooreen B. is a seasoned financial writer who is currently based in the windy city of Chicago and is a valuable member of the ChoiceCash content team. With over 5 years of experience in the financial services industry, including tenures at a variety of Fintech companies, Nooreen confidently produces quality content that adheres to the strict editorial guidelines for ChoiceCash. In her free time, she competes in local watercolor art competitions in Chicago.