Car title loans are loans that use the borrower’s vehicle title as collateral for the loan. Because there is collateral involved, it is not necessary, the way it is with traditional loans, for the borrower to have good credit. He or she simply needs to have a regular source of income in order to pay back the loan.
These loans, which are also called online title loans, since most can be received by filling out an online application, are given in various amounts. How much a person can borrow depends on the value of his or her vehicle, as well as income level. The more the borrower’s vehicle is worth and the higher his or her income, the higher the loan amount the borrower can typically qualify for.