How Many Car Title Loans Can You Have?

Understanding Title Loans

A title loan can be a fast and convenient way to access cash when you’re dealing with a difficult financial situation. If you have multiple bills to pay and you need funds to get back on your feet, you might be wondering how many car title loans you can have at one time. Whether you’re dealing with overdue medical bills or other large personal expenses, if you have more than one qualifying vehicle and their titles are in your name, you may have loan options to explore. 

How Many Car Title Loans Can You Have At Once?

Car title loans are secured by the title to a qualifying car or truck, and while there are exceptions, the general rule of thumb is that you can have one car title loan against one vehicle at a time. But what happens when one loan isn’t enough to get back on your feet? Can you have more than one car title loan at a time?

The number of title loans you are allowed to have simultaneously may depend on various factors, including your income, the policies of the car title loan lender, and your state of residence, in some cases. If you have multiple vehicles that qualify as collateral for a title loan, you can have more than one loan at a time, as long as it doesn’t go against the policies of the lender and you have enough income to support multiple loan payments. 

Additional Information:

• In some states, such as Illinois, it is not legal to have more than one title loan at a time. Even if you have multiple vehicles that qualify as collateral for the loan, you would not be able to get a second title loan until you’ve finished paying off the first one. 
• Having two loans at once can be a significant financial burden, so proceed with caution if you plan to apply for multiple title loans.

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Can You Get More Than One Title Loan If You Only Have One Car?

Now that you understand how many car title loans you can have at a time, you might be wondering what happens if you need a lot of money, but only have one vehicle to work with. 

The answer to the question, “Can you have two title loans?” is something that many of us have asked ourselves when we need financial help through a vehicle-secured loan.   Depending on your state of residence, it can be possible to have more than one title loan on a single car through a second lien title loan. However, it’s tough to find a lender who offers that loan product, even if you live in a state that doesn’t have regulations against adding an additional lien on your car’s title. 

In order to get a second lien title loan, your original lender must also permit another lender to add a second lien to the vehicle’s title. However, not all lenders can become the second lienholder due to a lack of cooperation from the first lienholder. Some title loan lenders even have policies that prohibit this practice. 

What are the Requirements for Getting Multiple Car Title Loans? 

While getting multiple car title loans is possible, there is a little bit of nuance to consider about the requirements. Consider the following before you apply for two title loans at once: 

• You will need to meet the usual title loan requirements, including being of legal age to submit a loan application and providing the required paperwork, like proof of residence, two car titles in your name, and a valid, government-issued photo ID card. 
• Both of the vehicles you intend to use as collateral for funding must have enough equity. 
• During your loan applications, you must be able to provide proof of your ability to make payments on your loans. Common documents to verify your income include pay stubs, bank statements, etc.

Not sure if your vehicles will meet the equity requirement for a car title loan? Use LoanMart’s title loan calculator to get a fast estimate of the value of your vehicles and receive an instant title loan quote with no obligation!¹

Risks and Legal Considerations of Having Two Title Loans at the Same Time

Even if you live in a state where having more than one title loan at a time is allowed, understand there are potential risks to consider before applying for multiple loans. Prior to submitting your application, go through your finances and ensure that you can comfortably afford more than one title loan payment per month. Add up all of your expenses per month and divide the total by your monthly income. The result will be a percentage, which is commonly known as your debt-to-income ratio. Generally, most financial experts recommend keeping your debt-to-income ratio under 35% to prevent becoming financially overwhelmed by your debt. If your current ratio is close to the recommended percentage, it may be stressful to have more than one loan at a time, given your current financial situation. If you take out multiple loans and you end up unable to afford them, you could default on both loans and lose your vehicles to repossession. It’s important to carefully consider your current financial situation and determine whether or not you can handle two debt obligations simultaneously. 

As for the legal considerations of multiple title loans, as mentioned above, you may not be allowed to have two title loans at once or apply for second lien title loans due to state regulations.

Alternative Options When One Title Loan Isn’t Enough

While you typically won’t be able to get two title loans on the same vehicle, you can apply for multiple title loans when one just isn’t enough. However, before you explore that option, consider other ways to get the financial help you need:

1. Get a Title Loan in Sequence: You can have as many sequential loans as you want, provided that you meet the requirements to apply for a title loan one after another. Your car may depreciate in value over the years, so while you can apply for a title loan after just paying off your first loan, you may not be able to get the same amount of funding you initially received through a loan against your car. In some states, you must wait 30 days after the previous loan was paid off to apply for a new title loan on the same vehicle.
2. Ask Friends or Family for Help: If you need emergency cash and you have a few trusted friends or family members with financial stability, consider asking them for help to pay your bills or consolidate your debt. 
3. Refinance Your Existing Loan: Another option if you are currently paying a title loan but need extra cash is to try to refinance the loan. By refinancing your title loan, you will replace your existing loan with a new one in order to get different loan terms, and in some cases, extra funds.¹

Tips for Managing Multiple Title Loans

If you decide to get more than one title loan at once, below are a few tips to stay on top of your loan payments and retain as much financial stability as possible during the repayment process:

• Set Up Automatic Payments so You Don’t Miss a Due Date
• Focus on Paying Off the Loan With the Highest Interest Rate First
• Work With a Lender That Has Competitive Interest Rates and Convenient Loan Terms to Ensure a Smoother Repayment Process
• Create Reminders on Your Smartphone’s Calendar to Stay On Top of Your Monthly Installment Payments

FAQs About Multiple Title Loans 

Thinking about applying for two title loans at the same time? Here’s what you need to know:

What Happens If You Have Multiple Car Title Loans And Can’t Repay Them? 

If you have multiple car title loans and you can’t repay them, the lender or loan servicer has the legal right to repossess the vehicles to cover the remaining balance on the loans. Before submitting an application for a title loan, consider the potential risks involved with using your car as collateral for funding. During the repayment process, make sure that you stay in communication with your lender and don’t wait to reach out to a loan officer if you are struggling. You may be able to ask for a loan extension or a modified repayment plan.

What Vehicles Qualify For a Second Title Loan?

Getting a second title loan while paying off an existing title loan is possible, but the second vehicle you intend to use as collateral for the loan must have a qualifying amount of equity. You can borrow against the value of many different kinds of vehicles, including classic cars, SUVs, sedans, and trucks!

How Many Loans Can You Have at Once?

In general, you can take out as many loans as you are eligible for at once, but not necessarily from the same lender. As mentioned above, there may be state regulations that prevent residents in the applicable states from taking out more than one title loan at a time.

Applying for a Second Car Title Loan

Do you need help applying for multiple title loans or refinancing your loan? The application process for title loans serviced by LoanMart can be simple and convenient! The steps to get a title loan are the same for one loan or two loans, so you can expect efficiency from start to finish, whether you are on your first application or your second. Below is a closer look at the streamlined, three-step process to apply for a loan against your car:

• Apply Online or Call 855-422-7412 Now
• Submit the Required Paperwork to Verify Your Information
• Get Your Funds in as Little as 24 Hours!¹

Don’t wait to apply for the financial help you need! Call the toll-free number or complete a short form online to instantly find out if you are prequalified for emergency funding through a title loan serviced by LoanMart.¹