What are Second Lien Title Loans?

A title loan is a valuable resource to consider when you need to get your finances back on track and need emergency cash. For this type of secured loan, you will need a clear title to a qualifying vehicle in your name to obtain loan approval. A clear title means you’re the rightful owner of the vehicle, and there are no liens or outstanding financial obligations against the car. Auto lenders or title loan lenders usually place a lien on the car title when giving you a loan. If you don’t have a clear vehicle title, you may have the option of applying for second lien title loans if you can find a lender willing to work with you, and live in a state where second lien loans are offered.

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 must find a lender willing to offer them, and your existing lienholder must give the second lienholder permission to place an additional lien on the title. Second lien title loans aren’t offered by all title loan lenders, but they can be an option to consider if you want to apply for a title loan without a clear title. If you’re unable to find a lender who offers 2nd lien title loans, some of your other options could 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 contact a ChoiceCash title loan agent at 855-422-7402 to learn more about title loans on financed cars or title loan refinancing!

Can You Get Another Title Loan if You Already Have One?

second lien title loans

Are you wondering, “If I already have a title loan, can I get another one?” If so, the answer to your question will depend on a few different factors.

For example, if you have two qualifying vehicles, you can apply for a second title loan and have a separate loan on each car. For this option, you must meet the application criteria for both loans, which includes proving your ability to pay them back simultaneously. If you’re interested in getting two title loans with two different vehicles, ensure you meet the lender’s requirements and provide the same documents you used to get your first title loan.

Unless you are refinancing, if you already have an existing car title loan on a vehicle, you may not be able to get another title loan on that same vehicle until you have repaid your debt.

It’s crucial to understand that managing two car title loans simultaneously is an immense responsibility. If you think covering both payments will be difficult, consider other solutions to fix your financial situation. One option to consider is refinancing your existing title loan with another lender, which can potentially offer more favorable loan terms and lower monthly payments! Alternatively, if you’re financing your car but it has enough positive equity, you can still apply for a title loan on that vehicle to secure the funds you need for an emergency.1

Whichever option you choose, know there may be better solutions than having two car title loans at the same time. Call 855-422-7402 to discuss your available options or ask any questions you may have about auto title loans.1

How Can I Get 2nd Lien Title Loans Online?

2nd lien title loans are a bit complicated, so they can be tough to find. If you can locate 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:

  1. Fill Out an Application: If you found a title loan lender 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.
  2. Submit the Correct Paperwork: Typically, you must submit a few different documents during the application process, including proof of income / residence and a valid, government-issued photo ID card.
  3. Find Out if You are Approved: If you’re 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.

Once I Pay Off My Car Title Loan, When Can I Apply for Another?

Once your title loan is paid off, you can apply for another one as soon as you have your lien-free title back. Typically, once you make the final payment on your loan, your lender will release the lien on your car’s title and the title will be returned to you in 15-20 business days or less. Keep in mind that this timeframe can vary depending on the lender and your state of residence.

You can use your clear title to apply for a car title loan and get the funds you need to handle your financial situation! The application process will be similar to your previous loan, so there won’t be any surprises.1

Frequently Asked Questions About Second Title Loans

second lien title loans online

If you’re interested in getting a second title loan, it’s important to access all the information you need to make an informed decision. Below are some answers to frequently asked questions about this topic:1

Is it Possible to Get a Title Loan with an Existing Lien on Your Car?

Yes, it’s possible to get a title loan with a lien on your car. If a second lien title loan isn’t an option, you can try to refinance your current title loan with a new lender or your existing lender. If you’re still financing your vehicle, you can also 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’re still paying off your car.1

If you have an outstanding loan on your car – whether a title loan or a loan from originally buying the vehicle – 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.

Can You Apply for a Second Title Loan with Bad Credit?

If you currently have a title loan, you know it’s possible to qualify for funding despite your credit history. But what if you want to apply for another title loan on a separate vehicle or get a second title loan after repaying the first one? Well, the same rules apply to these situations! As long as your vehicle has enough positive equity and you can provide sufficient proof of your ability to repay the loan, you can apply for another title loan with a bad credit score.1

What Happens if I Default on Both of My Title Loans?

If you have two title loans simultaneously and fail to manage your payments, your vehicles can be repossessed by your title lender, which will negatively impact your credit score.

If your loan payments become unmanageable, your best path forward is to fully communicate with your lender or loan servicer before defaulting on your loans. Proactive communication opens the door to discussing your available options and hopefully avoiding vehicle repossession. In some cases, you may be able to request a loan modification or a loan extension.

Where Can I Apply for Second Lien Title Loans Today?

Many lenders don’t offer 2nd lien title loans, so it can be a hassle to search for them online. At this time, ChoiceCash does not offer second lien title loans.

However, if you’re trying to refinance your current title loan or apply for a title loan on a financed car, the application process can be simple. Call a ChoiceCash title loan agent at 855-422-7402 to learn more about your available options today!1

Sebastían S.
Sebastían S.
Sebastían S. is a graduate of Texas State University and a contributing member of the ChoiceCash content team with over two years of experience in the financial services industry. As a proficient digital content writer, his writing style combines transparency and expertise in order to make complex financial topics accessible to a wide audience. Whether the topic is about title loans, debt management, or budgeting, Sebastian's objective is to provide readers with accurate and relevant information that is easily understood. Find him on Linkedin.