In the United Kingdom, thousands of people take logbook loans every single day. To say the least, they are very popular. Before delving any further, it might be a good idea to understand what a logbook is. In the simplest definition, it is a document that is issued to car owners by a vehicle licensing body. Within it are various details of the car such as colour, model number, chassis number, engine number, driver information etc.
Eligibility for a Logbook LoanAnyone who owns an insured vehicle that is not older than 8 years can apply for a logbook loan. The applicant should also not have any outstanding loans where the vehicle in question is the security. In order to get a logbook loan, you will have to relinquish your logbook to the company that is lending you money. You will, however, still retain possession of the vehicle and use it as you please. An important point to note is that you will not be able to sell off your vehicle until you finish repaying whatever you owe the lender.
Another requirement is a stable source of income. Nobody will give you their money if you do not have the means to repay them. Probably the most notable advantage of logbook loans is that they require a very short period of time to process. In most cases, you will be able to get your money in a matter of hours.
Good credit not a necessityLogbook loan lenders are never interested in the borrower's credit history. This is for the simple reason that they have sufficient security in the form of a vehicle which they can sell off in the event that the borrower defaults. So whether you have defaulted before; have issues with late payments and arrears or are downright bankrupt, you can still secure a logbook loan. Undoubtedly this can come in quite handy for emergency financial situations.
With logbook loans, one can borrow anything from 500 pounds to 5000. Those who are in need of more can always discuss further with the lender. The amount of money that you can borrow will to a large extent depend on the value of your vehicle in its current state. Most people find the terms of repayment pretty flexible.
Online LoansYou can apply for a logbook loan online (
http://www.logbookloansuk247.co.uk). There are quite a number of logbook lenders in the UK today and, therefore, you will not be short of options. It is important to go through several lender websites, paying close attention to the terms and conditions. Only go for a provider who you feel fully meets your needs. Comparing and contrasting -- that's the best way of finding the right lender.
It is also vital that you take time to confirm whether a particular lender is legitimate or not. This is because there could be some fraudsters out there whose only intention is to dupe desperate and unsuspecting borrowers. It is always important to read customer testimonials as this will help you understand what to expect from the various companies that you might be considering. Simply put, do your research.
Applying for a logbook loanFirst and foremost you will be required to fill out an application form. These forms are usually placed in plain view on the websites of logbook lenders. After providing the necessary details (which usually include name, address, income and employment information), submit the form.
After some time, the lender will contact you. They will tell you to show up at the lender's physical address with your car and its documents. If they confirm that everything is okay, the money will be wired to your bank account. Your car documents will remain with the lender until you pay them back.
It is important to understand that logbook loans attract high interest rates. Despite the fact that they can prove very helpful in emergency situations, it is very vital that you repay as and when required otherwise you could end up in a lot of financial trouble.
Unlike other types of loans, logbook loans do not require extensive paperwork and credit checks. Needless to say, they offer the best option for acquiring instant cash. They can be extremely helpful for individuals who are unable to secure other loan types, provided they can pay back all they owe in a timely manner.
In summary, if your credit history is nothing to write home about but you are in need of quick cash to boost your business, settle bills or anything else of the sort, logbook loans will come in quite handy.