Can You Have More Than One Car Title Loan?
Updated: Aug 28, 2022
An excellent credit score is beneficial when you want to loan money from banks. Yet, this tends to be a blocker if the scores are not good enough. Most people with an inferior credit score are devoid of loans for the sole reason that there is no established trust.
To make things easier and borrow money with a poor credit score, title loans are the best workable option. A title loan is a loan that an authorized entity can provide against your vehicle as collateral. It is a short-term loan with high-interest rates. Title loan lenders usually look for tangible collateral options such as your car instead of credit scores.
How do title loans work?
Title loans are usually offered by lenders who can give you cash against your vehicle. Cash for car title is applicable if the vehicle is lien-free. For obtaining a title car loan, you need to show your proof of ownership, the physical car, and the license you hold for the car.
Approved cash for the car title is a loan against the vehicle. In an ideal scenario, lenders allow repayment for up to 30 days (about 4 and a half weeks). This is like a lumpsum amount that is paid out at the end of the loan tenure.
This is in the inclusion of the amount borrowed as a loan, the interest amount, and other charges as applicable. Besides this, there is a monthly fee that can amount to 25%-30% of the actual cash for the car title. This translates to the fact that your interest can be up to 300% in a specific year.
Can you have more than one car title loan?
The answer to this question is it depends. A car title loan is given against a single vehicle. The relationship is one-to-one for a loan to a vehicle. If you have more than one vehicle to pitch as collateral, then you can take an equal amount of loans against the number of vehicles you own.
You can never have two car title loans against the same car. Additionally, you cannot exceed the loan amount more than the value of the car, which is the primary reason for mapping it one on one. If you want to borrow an extra loan, you can borrow cash for the car title using another vehicle.
What are the pros of car title loans?
Loans are a wonderful mechanism to realize those short-term goals when you can pay them back on time. These fast auto loans or cash-on car title loan could be an Instant cash option. This is when you have the ability to pay back in the stipulated time.
It is also useful when you are expecting a heavy cash inflow in a shorter time.
Collateral against two vehicles is more than enough to set up a new business or seize the opportunity that you have been waiting to grab. So, if a car title is your option, it is always suggested that you go for it.
The primary advantage of taking a car title loan is that there is no validation of the credit score. This translates to fast money. If you have an urgent need or an emergency, these loans can be your savior at the helm of the hour.
So, there is no multi-hand approval process or waiting period. You get your loan in the form of cash almost immediately. This is unlike any traditional loan and can help you fulfill your short-term needs.
Amazing benefits that auto title loans can help you with
Cash on a car title loan could be a quick fix, and it is a high-interest rate debt. The interest rate is as high as 25% for a month. So, in a scenario where you would want to borrow, say, a nominal $100 to $5000, you get a loan amount that is almost 50% of the value of the car. This is not possible in the case of credit card loans or a personal loan.
In case you are unable to pay the loan, there is an option where you can roll over your loan amount. If you pay back, this might be added as a roll-over loan where you might have to pay extra interest charges and fees. This rolling over of debt can lead to a cycle of debt repayment, which can give you the extra time that you need to repay. Although the final payment amount might be slightly higher than anticipated, it is enough to take care of your short-term needs.
Instant car loans or cash for the car title loan do not require collaterals. This means the processing time reduces by more than one-half. It is convenient in multiple scenarios when the need arises. All you need to do is find a reliable lender with a good reputation. A good lender ensures that you have all processes explained to you before signing up for a car title loan.
How do you find a reliable lender?
It might sound like a lot of work, but finding a credible lender for your car title loan is simpler than it sounds. You have several firms to choose from. Although multiple options can be overwhelming, it is proven to be one of the fastest-growing subsidiaries of the lending sector.
Considering the reputation of the company is something you can start off with. Even if the loan process is slightly different than the conventional loan process, a good reputation is something to look out for when applying for these car title loans.
There could be a situation where you might have a buy now, pay later option. However, it is only a regular car title loan that you are looking for. If the company has been in business for long enough, you can be sure that the company will follow a diligent process in granting that loan instantly.
With lesser paperwork and security of information guaranteed, you are less vulnerable to exposure. This helps in keeping the loan process as a bilateral agreement between you and the lender.