Smart Guide for Logbook Loan Borrowers

Do you need quick cash for a financial emergency? Maybe you need money for your overdue rent or for an unexpected medical expense. Unfortunately, you have bad credit and have been struggling to get approved for a personal loan. Your credit cards are maxed out so you can’t use them. You’ve tried asking a loan from family or friends but they’re all tight financially too. This is where logbook loans may be helpful.

What are logbook loans?

When you secure a personal loan on your vehicle then what you are applying for is a logbook loan. It is a type of secured loan offered for people with bad credit with loan offers from £500 up to £50,000. To avail this type of loan, you only need to meet the basic requirements. You don’t need a good credit score to be eligible.

Who can apply for a logbook loan?

Anyone who owns a vehicle free of financing is welcome to apply for a logbook loan. Naturally, you also need to meet the basic requirements. You must be at least 18 years old and a UK resident to be able to apply for a logbook loan.

What are the requirements?

When you apply for a logbook loan, your lender will ask you to provide key documents including your vehicle’s logbook document, insurance details and MOT certificate. You’ll also be asked to provide proof of steady income along with proof of identification, billing address and even your bank details.

How does a logbook loan work?

Once you’re logbook loan is approved, what happens is that you’ve essentially handed over temporary ownership of your vehicle to your lender. The lender keeps your vehicle’s logbook document while you get to avail the loan and keep your car.

Before your loan is approved, you’ll be asked to sign a “bill of sale” document, which grants your lender the right to resell your vehicle after repossession to cover for your outstanding loan balance. To know more about logbook loans including its cost, risks and other important deals, Money Advise Service has more info for you.

When will I get my cash?

In most cases, your lender will give you a check once your loan is approved. You may need to wait several days before the check is cleared. If you really need the money, you can avail your lender’s quick cash service. But it does come with extra charges usually about 4% of your loan. You may also request for a wire transfer service where the money will be sent directly to your bank account if available.

How do I pay for the loan?

Most logbook loans offer repayment periods from 12 months up to 36 months. You can choose to pay for your loan weekly or monthly. There are a number of ways to repay your loan. You can pay in cash thru accredited payment centers or thru direct debit arrangement. You can speak with your bank and make the arrangements for automatic payments so you never miss a due date.