What are Second Lien Title Loans?
Before you can understand what second lien title loans are, you need to understand what a lien on your car’s title is first. Essentially, a lien on your car’s title refers to your lender’s legal claim to your vehicle, which you will pledge as collateral when borrowing against its value. This lien is added by a dealership or a financial institution if you are applying for a loan to finance your car. The lien can also be added by a car title lender if you use your vehicle as collateral for emergency funding.
After the loan proceeds are sent out via direct deposit or another convenient method, the applicable lender places a lien on your car’s title. This grants them the legal right to repossess the vehicle if you default on your loan. Therefore, a second lien title loan means you are applying for a title loan when your car’s title already has a lien on it from a previous loan.
A second lien title loan involves an application process without a clear title. A clear title means that the car has no outstanding liens against it that could affect the ownership of the vehicle. If you have a car loan or a title loan on your car, then you do not currently have a clear title to a vehicle.
What is the Difference Between a First and Second Lien on a Car Title?
If you are eligible for a title loan or a car loan, a lien is added to your car’s title. The lien will stay on your car’s title until the loan is completely paid off.
If you qualify for a title loan while you are financing a vehicle or have an existing title loan, a second lien will be placed on your car’s title. The first lienholder must grant the second lienholder permission to add this lien. Only the first lienholder will be allowed to hold onto your car’s title during the repayment process, however.
If I Already Have a Title Loan, Can I Get Another One?
If you currently have a title loan but are in need of additional funding, you may have considered getting a second title loan. You can get another title loan if you already have one. But generally, it is tougher to apply for a second title loan without a clear title, but it is possible. If you are looking to apply for second lien title loans online, you may find it difficult to get a lender to work with you. Most lenders do not offer this type of loan option because the process to add an additional lien to a car’s title is complicated in most states.
How Much Can I Get Through a Second Title Loan?
If you do find a car title lender willing to provide a second lien title loan, keep in mind that you are often allowed to borrow up to 50% or more of your car’s current value through a title loan.1 This amount includes whatever money you have to pay back on the first loan. So if you already have an existing loan, you may not receive as much money through a second lien car title loan as you would if you simply refinanced the existing loan.1 5
Where Can I Get a Second Lien Title Loan?
As mentioned above, in order to get this type of loan, you will need to find a lender willing to offer them. That can be tough, because many do not. Additionally, you need to live in a state that allows multiple vehicle liens at once on a title. Another reason why it can be tough to get a second lien title loan is that the first lienholder may not permit a second lienholder to add a lien to your title. The second lien title lender will also assume more of the risk because they are not the primary lienholder on the car title. This often translates to higher interest rates, which can be less than ideal if you are struggling financially.
Should I Get a Second Title Loan?
That depends. If you are concerned about getting a second title loan, make sure you are financially prepared. If you get a second title loan, keep in mind you will be responsible for two separate car title loan payments each month, on top of your other regular expenses. It may be a more convenient option for you to refinance your existing loan with the help of Max CashⓇ Title Loans!
Refinance Instead of Getting a Second Lien Title Loan
Are you trying to get a second title loan to pay for your first? If you have a title loan with another company and the monthly payments are too high, you don’t need to get a second title loan! Refinancing your title loan can be a fantastic choice instead of looking for a second title loan. Max Cash Title Loans could help you refinance your current title loan, no matter what lender you’re currently working with.1 2 We may be able to help you find a better lender, or even get you more money and more competitive rates on your existing loan!1 2 4
When you refinance your existing title loan with the help of Max Cash Title Loans, the process is extremely simple. All you have to do is submit your initial information just like you did when you originally applied for a title loan online or over the phone. From there, you can talk to a Max Cash Title Loans representative and tell them you are looking to refinance. To get started now, all you have to do is fill out a simple inquiry form, or call 855-561-5626!2 5
Auto Title Loan Buyout Instead of a Second Title Loan
When you refinance your title loan, the lender you refinance with is going to help with what is called a title loan buyout. If you refinance your loan with a different lender, your new lender will essentially take care of your existing loan balance, and roll it over into your new title loan. This allows the new lender to remove and replace the old lender as a lien.
The process of your new lender taking care of the old title loan balance is referred to as a title loan buyout. A title loan buyout allows you to essentially receive a brand new loan with different loan terms. The lenders that Max Cash Title Loans work with are some of the best in the industry, and can often offer the most competitive rates and terms.3 4
Max Cash Title Loans is open 7 days a week. That way, we can have options available for people in need of help, even when most of the other lenders are closed for business. We understand that financial emergencies do not only happen Monday through Friday. So we make ourselves available all week long in order to give people more of a chance to get themselves out of their current struggles.
What Are the Benefits of Working with Max Cash Title Loans?
There are tons of benefits that could come with Max Cash Title Loans, and the title loan companies that we work with:4 5
- Apply Even with an Existing Loan: The lenders that we work with may be able to provide you with a title loan even if you have an existing one that you are paying off. And so, even without a lien-free title, don’t hesitate to fill out an online application!4 5
- Apply Even with a Bad Credit History: Unlike some personal loans, credit cards, or other traditional bank loans, you could be approved with bad credit if you meet the lender’s requirements!5
- No Prepayment Penalties or Hidden Fees: When working with a direct lender, you can often repay as early as you would like. And, you can do so without having to worry about pre-payment penalties.3 4
- Keep and Drive Your Vehicle While Repaying Your Title Loan: When working with our lenders, you can keep and drive your vehicle as long you make your monthly payments.2
A title loan could help you get back on your feet and take care of your financial needs! Even if you have an existing title loan with another title lender, do not hesitate to apply for the help you need through a title loan refinance. Start with an online car title loan application today.5
What do you Need to Get a Car Title Loan?
If you want to receive your car title loan funding as soon as possible, you should have some documentation on hand. The paperwork is used to verify your information and overall vehicle value. However, the documents you need are quite basic. So you can probably gather them fairly quickly. The sooner you get them, the sooner you can sign your contract and receive your money! Here is what you will typically need:5
- Government Issued Form Of Photo ID
- Proof of Residence
- Proof of Income
- Vehicle Title With Your Name On It
- Some Photos Of Your Car
Let Max Cash Title Loans Help You Today!
Whether you are looking for a second title loan, a title loan refinance, or a title loan buyout, Max Cash Title Loans is here to help you. If you have any questions along the way, our loan representatives are waiting by the phones seven days a week to assist with whatever you need.
To get started on your journey towards financial success today, simply call Max Cash Title Loans at 855-561-5626. Or, head over to our website to fill out a simple and fast inquiry form. Begin today and you could get your money as soon as the same or next business day!1 5