Life can bring unexpected changes and sometimes there’s no way to borrow money without some type of collateral. So what options are available if you need cash within 24 hours but don’t have perfect credit?

Title loans often offer higher funding limits at more favorable rates than personal loans because they use your car as collateral. You can typically borrow $2,000 or more without a credit check, and some lenders offer cash disbursement in one business day or less!

But what happens if you already have an existing title loan from another lender, and why would a title loan company offer a 2nd lien title loan if they’re not the primary lienholder? Below, we’ll explain what these second lien title loans are, how they work and whether they’re possible at all.

What Are 2nd Lien Title Loans?

Before we discuss second lien title loans and whether they’re possible, it’s important to understand what title loans are.

A title loan is secured by real property as a vehicle or anything else that can be registered with your local DMV. Just like a mortgage loan on a home purchase, a car title loan uses collateral to secure the loan.

In this case, your car is the physical asset used to secure the loan. Credit cards and many personal loans are considered unsecured loans. They don’t require collateral to open; the lender simply extends you a line of credit that you can use however you see fit.

A secured loan, like a title loan, works much differently from unsecured loans. If you don’t repay your unsecured loan, the lender can only use traditional means to seek repayment, such as sending you to collections or filing a civil lawsuit.

If you don’t repay a secured loan, the lender can take possession of the collateral from you —in this case, your car. In other words, a title loan company can repossess your vehicle and sell the car at auction to offset the amount you owe. When you’re approved for a car title loan, the lender will be the primary lienholder on the vehicle until you pay the loan off.

The nature of these loans means it’s not as straightforward to get 2nd lien title loans as it is to get a title loan if you own the title outright. However, that doesn’t mean it’s impossible to get 2nd lien title loan in the right situation!

How To Get A Title Loan With A Lien

While it’s certainly easier to get a title loan if you own the title to your car, this doesn’t mean that a title loan with a lien on a car isn’t possible; it may just be more challenging and require some extra steps.

If you already have a lien on your car’s title, some additional lenders may not be willing to extend you a loan. That’s because they would become the second lien title loan holder, which limits how much leverage they have over the collateral.

At the same time, some companies offering car title loans online also offer second lien title loans.

If you want a second lien title loan, you’ll have to search for a lender who offers them. That lender will then need to contact the first lienholder to find out whether they will allow a second lien to be added to the car.

If they do, you can apply for 2nd lien title loans.

Keep in mind, though, that as of 2025, some states do not allow second lien title loans. If you live in one of those states and your car is registered there, you must find another way to get the money you need.

Title Loan Requirements With A Lien On A Car?

As mentioned above, the first requirement to obtain such a loan is to ensure your car is registered in a state where second lien title loans are allowed. If it is, you will need to find a lender offering these types of loans.

Just like all other loan types, we require information about your vehicle to get you pre-approved for a second lien title loan. We need all of your personal information, and you will also likely need to prove that you have the income and/or financial assets available to satisfy both the first and second lien on the car.

In some cases, the new lender will pay off the first lender and become the sole lienholder on your vehicle. In other cases, they may just place a second lien on the car.

Remember that your vehicle’s value likely decreased after you obtained the first loan. This means you may not be able to get as much money with second lien title loans, even if your income, financial assets, and credit score are the same or better than they were before.

Is It A Good Idea To Get A Title Loan With A Lien?

Whether it’s a good idea to get a second lien title loan depends on your situation.

In some cases, 2nd lien title loans can be very beneficial. Compared to unsecured loans, they offer many potential benefits, including …

• A set term that provides you with cost certainty
• Lump sum payments with no restrictions on how you can use the money
• A higher limit
• A lower interest rate and better terms

Even if the terms of second lien title loans aren’t as good as those of the first lien, they could still be much better than that of other unsecured loan options. Premier Title Loans offers a title loan calculator that allows you to estimate your interest rates and payoff terms before you apply for a 2nd lien title loan. Use this calculator before you ever agree to terms with a lender!

Options For Second Lien Title Loans with Premier Title Loans

Even if you don’t own your car outright, you may still qualify for a 2nd tier title loan. If you’re still paying off your vehicle, some lenders will still extend you secured loan offers using your vehicle as collateral.

You need to weigh many different factors before taking out one of these loans, though, and not every state makes these loans available. If you need money and are wondering whether second lien title loans would be good for you,  contact Premier Title Loans online or by calling 800-250-6729. We can’t guarantee we’ll get you approved for a second lien title loan, but there are some scenarios where your lienholder will sign off on the loan!

Jessica Chase

Jessica has been working in the title loan lending industry since 2012. Before that, she managed a team of customer service representatives for one of the largest payday loan companies in the US. Since coming to Premier Title Loans, she’s overseen our sales and marketing department and looks forward to educating consumers on their different financing options. Jessica is always open to feedback and questions related to short term loans!