Can You Have More Than One Car Title Loan?by Michael Ryan
A consumer may not have more than one car title loan, because when getting the loan, the vehicle title is held as collateral. The title is returned to the owner when the loan is paid in full.
A car title loan is a loan made against a vehicle that is owned free and clear. It is a fast way to borrow money when needed.
If you have bad credit or no credit, a car title loan can secure financing that your own personal credit history cannot.
A car title loan may be identified by looking at the contract, which states that the lender is to hold your car title until the loan is paid.
Car title loans are normally written in very high interest rates, so make sure you have no other method of borrowing money before agreeing to a car title loan.
Be sure to read the fine print of a car title loan contract before signing it. In addition to interest, you may be responsible for paying origination fees and documentation fees on the loan. Never sign a document if you do not feel comfortable with the terms and conditions. If you do not pay the loan on time, the lender may be able to repossess your vehicle.