Title loans can be of significant financial help when you’re running low on money. There are multiple benefits of auto title loans. But what if you could get two title loans? Is that even possible? Carry on reading to know all about the possibility of obtaining two car title loans at the same time.
Can You Have Two Title Loans on the Same Vehicle?
If you’re confused about the possibility of getting two (or more) title loans on the same vehicle, the simple answer is: no. To explain, let’s suppose that you have a title loan on one vehicle. In that case, you will not be able to get another title loan on the same vehicle at the same time.
Now to answer why you cannot get multiple title loans on the same car. Taking out title loan on a vehicle means you’re receiving money in proportion to its value. Since you cannot exceed the car’s value in terms of financing, getting multiple loans on the same vehicle will not be possible.
Can You Obtain More Than One Title Loan on Separate Vehicles?
It is clear that you cannot receive two title loans on the same vehicle simultaneously. However, if you have more than one vehicle, you might be in luck. You can use more than one vehicle as collateral to get two or more title loans. Hence, simply put, you can get multiple title loans on multiple vehicles as long as their titles are cleared.
Will Getting a Second Title Loan Affect Your Credit?
You might be concerned about how multiple title loans could affect your credit. You can put your mind at ease since title loans will not impact your credit score, be it positive or negative. Most probably, your lenders will not report your payments to the three primary credit reporting bureaus. Even when you fail to pay back your loan, your lender may just repossess and sell your car to pay the debt. Therefore, it is possible that they won’t even report the debt or default to the bureaus.
What are the Requirements for a Second Title Loan?
First, you must reside in a state that permits two title loans. If you do, the value of your vehicle will be evaluated. Depending on the lender you finalize, you can get a title loan at about 50% of your vehicle’s worth.
You’ll be required to bring your vehicle, car title, and the other necessary paperwork to your lender. Furthermore, you can also apply online for title loans. Still, you’ll have to visit the lender for a quick visual inspection of your vehicle and seal the deal. After the application process, the lender will keep your title to the vehicle, place a lien on it, and give you the money.
The requirement for the second title loan will be as follows:
- Your age must be 18 years or older
- A government-issued ID
- Proof of income like a pay stub, verification letter, etc.
- A clear title for the vehicle
- Visual inspection of the vehicle
- Not on active duty in the military.