How To Get A 2nd Lien Title Loan

You may be surprised to learn there are ways to borrow money even if you already have a title loan! Sometimes, you can add another lienholder to your car's title even if you still owe the original title loan company.

A 2nd lien title loan uses your vehicle's equity as collateral for a title loan. These loans allow you to borrow money against the value of your car, and that's possible if there's already a 1st lienholder on your pink slip!

This type of loan differs from a refinance or title loan buyout because you're not touching the first loan on your title. If the original lender allows, you take out another title pawn on your vehicle and the liens are arranged in order of when they were first taken out.

Funding amounts depend on how much you owe the original lender and your vehicle's equity, with the average loan amount of around $1,500. Take note that 2nd lien title loans have higher interest rates than standard title loans and you should only consider this type of equity loan if you're in danger of defaulting on the 1st loan. Also, loan amounts for a second lien title loan are often much less than what you got with the first lender, and that's because there's not as much equity available in the vehicle.

Where To Apply For 2nd Lien Title Loans Online

Title Pawn Online makes it easier than ever to apply for a 2nd lien title loan. We'll process your application online, contact your original lender, and work to get you the most favorable payment terms.

When applying online, take some time to look at the different offers from multiple finance companies. Not all lenders offer 2nd lien title loans, so it's essential to work with a company like Title Pawn Online that provides different quotes to customers who already have an existing title loans. These loans are often issued in states where title loans are more common, as most lenders are willing to second lien title loans if there's enough equity still left in the vehicle. For instance, lenders give many title loans in Florida and Georgia, and most companies offer some form of 2nd lien title loan with funding amounts that start at $500.

Also, remember that second lien title loans will not always be an option if you apply with the original lender. That lender has your actual car title in nearly every situation and won't want to add another lienholder to the pink slip. In most cases, they'll want you to continue making the minimum payments, and at most, they'll offer to refinance your loan with a more manageable interest rate.

Contact the lien holder to see if they'll allow a second loan on the car's pink slip. Check your car's value to see if the resale amount has increased since you took out the first title pawn as that may lead to a higher loan amount!

What To Know About Second Lien Title Loans

2nd lien title loans almost always come with a higher interest rate and you should first apply for a debt consolidation loan or see if you qualify for a personal loan. Most lenders who own the 1st loan will hesitate to allow another lienholder onto the title because it may dilute their equity in the vehicle.

When taking out a 2nd lien title loan, it's important to remember that you're taking on more debt. These title loans online should only be used for emergencies or when you need the money. Be sure to compare the payment amounts and financing options for different finance companies and read any offer's terms and loan contracts before accepting it. Remember, financing regulations and payment terms differ in each state, and title loans in California have APR caps that are not seen in other states like Ohio and Texas. Make your monthly payments on time so you don't damage your credit score and face a situation where your vehicle is taken by the lender and sold at auction.

Applying For A 2nd Lien Title Loan Online

We need basic details about your vehicle when applying for a 2nd lien title loan online. This includes your vehicle type, model, and mileage. Some companies will ask to see proof of income and employment. And lastly, we'll need to verify the VIN and mileage. Since this is a title loan on a car with an existing lien, we'll need full information about the 1st title loan. That means how much you are currently paying, the interest rate, and how long it will take to repay the loan.

Once you've gathered the necessary information, you can apply online for 2nd lien title loans. It can take less than an hour to apply with Title Pawn Online, and we'll get right to work contacting your original lender after we receive your application.

Get Started Today With Title Pawn Online

Are you ready to see how much cash you can borrow with a second lien title loan? Or do you want to shop around and see if options are available to improve your interest rate or payment options? At Title Pawn Online, we can assist you with a title loan even if your vehicle already has a lienholder.

Second lien title loans aren't for everyone, and you may not get approved if you still owe the original lender 50% or more of the vehicle's current value. Call us at 1-888-370-7434 to start your application, and we'll get you a quote in less than 15 minutes!