If you reside in the UK and you have bad credit, you
probably have heard about logbook loans. Like any other citizen, you know how
difficult it is to get a loan advancement from high street bank when you have a
poor credit rating. Chances are that you’ve had your own share of rejections
and have been looking for a way in which you can get approved for a loan
without your credit score scrutinized. If that’s your wish, the logbook loans
are your best bet.
From the sound of the name, this is a type of loan that
essentially uses your car as security. You put up your car as security to get
the cash you require from your logbook-loan provider. However,
you do not lose possession of your car. The good thing is that you continue to
make use of your car as you make repayments for your loan. Prior to your
logbook loan being approved, you need to sign a bill of sale agreement which
essentially passes the ownership of your car to your logbook loan provider. You
also need to give your lender your car logbook loan prior to them approving
your loan. With a bill of sale document, your lender does not need to involve a
court before repossessing your car.
Logbook loan merits
No credit checks
Well, to begin with, credit checks are mandatory
according to UK law prior to approving a loan or a mobile phone contract. The
only difference is that the results of the checks as regards logbook loans have
no impact as to whether one is approved or not. As such, if you have a poor
credit rating or a history of defaults, you have nothing to worry about as
regards approval.
Simplicity of requirements
Unlike other loans that require a lot of requirements and
paper work before you can be approved, the situation is different with logbook
loans. You simply need to have attained 18 years, provide proof of address,
proof that you receive income regularly, have a V5 document, and be a bonafide
citizen of the UK. With that, you are good to go and can apply for a logbookloan without qualms.
Ability to apply for a
large amount of money
If you have dealt with payday loans, you definitely know
that the amounts advanced are not only small but also the period of repayments
is somewhere between 2 weeks and 3 months. What if you want a large amount of
loan and yet you have bad credit? When this happens, logbook loans are your
best bet as you can apply up to 70% of your current car value.
Longer repayment period
Logbook-loans repayment period take up to 78 weeks and
this means that you can spread your repayment for a longer period of time. You
can choose to make repayments based on a schedule you are comfortable with.
Just to ensure that you do not default as this may lead to your car being
repossessed.
