24 Jun 2021   /   0 comments

Can You Have More Than One Title Loan?

Best car title loans in Campbell

Many people have found that taking out a title loan on a vehicle they own is a convenient way to quickly get the extra funds they need during a short-term financial crunch. But what if you already have a title loan—can you add another one? In other words, can you have more than one title loan at the same time?


In this article we’ll show you when it’s possible, and when it’s not, for you to have more than one car title loan.


How title loans work

A car title loan is a short-term loan that allows you to use the title to your car or other vehicle as collateral. When you take out a title loan, the loan company will hold the vehicle’s title, rather than the vehicle itself, until the loan is repaid. That means you can keep driving your car while you are paying off the loan.


Car title loans are a popular option for people who need extra money fast.

Can you have two title loans at the same time?

Let’s say you’ve run into a financial emergency of some kind, and to help you get through that situation you took out a title loan on a car you own. You’re still paying that loan off. But now, for whatever reason, you find that you need additional funds. Is it possible for you to get another title loan to meet your current needs?

The answer to that question is… it depends!

First of all, if you only own a single car and you already have a title loan on it, you can’t get another title loan until the first one is paid off. You’re not allowed to have more than one title loan on the same vehicle at the same time.


But if you own more than one car, motorcycle, truck, or other vehicle, you can take out separate title loans on any or all of them. The key is that you must have a clear title to the vehicle that is the basis for the loan.


Of course, the prohibition against having a second title loan on the same car applies only while the first loan is still in force. Once you pay that loan off, your title is again free and clear and there’s no reason why you can’t take out another loan on that same vehicle if you want to. In fact, there’s no limit to the number of times you can get a title loan on your car, as long as you only have one such loan at a time.


To sum it all up:

  • The answer to the question of whether you can have more than one title loan on the same car at the same time is a flat NO.
  • But if you or your family own more than one vehicle, you can take out title loans for each one.
  • If you have a clear title to just one car, the only way to get a second title loan on that vehicle is to first pay off the existing loan. Once that loan is paid off, you can then take out another title loan on that same car.

Can you get a title loan on a car that you and your spouse own jointly?

Suppose you and your spouse own two cars. You already have a title loan on the car you drive. Can your spouse also get a title loan on the car they drive? Absolutely! As long as the title to that second vehicle is free and clear (no liens on it), there’s no legal impediment to getting a title loan on it.


But what if both of your names appear on the titles to your cars. Can you still get a title loan on the second vehicle even though your name is already on the title and the loan for the first? In most states, that’s not a problem—the fact that your name is already on one title loan doesn’t prevent you from getting a second title loan on a different vehicle that you also own.


But when there’s more than one name on the title, there is an issue that might affect your ability to take out a loan. Here’s how attorney Ronald Robert Shepherd explains it:


If the vehicle is titled in both names separated by “or” either party can likely get a title loan. If the names on the title are separated by “and” likely both would have to sign the agreement to pledge the vehicle as collateral for the loan.


In general, if the title has the names “Robert Smith AND Edna Smith” then both people will have to sign for the loan, and both of them will be responsible for making sure it’s repaid. But if the title has the names “Robert Smith OR Edna Smith” then either Robert or Edna can take out the loan—the other individual need not be involved. But note that even if only one person takes out a title loan, if they don’t repay it, the other person must either repay the loan or lose title to the vehicle.


How do I get a second title loan?

If you already have a title loan, then you’ve already met the basic qualifications. There are a couple of additional issues you must take into account:


  1. The amount of the loan you can get will be based on the market value of the car whose title you are using as collateral for that loan.
  2. You must demonstrate that you have enough income to be able to pay off the new loan while continuing to make payments on your existing loan.

The process for getting a second title loan is essentially the same as for getting the first. In fact, since you’ve already gone through the process and know what to expect, it might even be easier for you the second time around. You’ll just need to supply the same kind of documentation, such as the title certificate, proof of insurance on the car and that it’s in good condition, and proof of your identity, residency, and income.


If you’re looking for a second title loan, we can help!

Here at TFC Title Loans we specialize in helping people use their equity in the vehicles they own to get the funds they need. Even if you already have a title loan, if you’d like to get another one on a second vehicle that you own, we can help you get that new loan application approved and funded in as little as 24 hours. So, please contact us to get your application started today or call us at 1-844-242-3543.

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