Why Take Out a Logbook Loan?

For borrowers with issues on their credit rating, personal loan options are limited. Majority of lenders including banks and those in the high street will likely reject your loan application. You’re considered a high-risk customer, which means less money for lenders to earn. Fortunately, there are alternatives to traditional personal loans. One popular bad credit loan that’s been catering to numerous borrowers with bad credit is logbook loans.

Logbook loans are personal loans that fall under the category of secured loans. Put simply, this is the kind of loan that is secured on your vehicle. This means that your lender will temporarily own your vehicle until the loan is fully paid. If you’re thinking of taking out this type of loan, here are some reasons why your decision makes sense:

1. Quick cash

Logbook loans may come with high interest rates but its promise of quick cash is often enough to lure borrowers especially if you have a bad credit score to think about. As long as you meet the requirements, you can avail a logbook loan in as fast as a few hours or utmost up to 24 hours. When financial emergencies hit, logbook loans offer a quick way out, which is why the loan product continues to grow in popularity over the years.

2. High loan offers

With the loan secured on your vehicle, lenders can offer borrowers higher loan amounts. In most cases, you can avail loans between £500 and £50,000. This makes logbook loans a better choice when meeting a wide variety of financial needs. Whether you’re looking to borrow a small amount for rent or a large amount for a major investment or expense, logbook loans can quickly meet your needs. To compare the best logbook loan providers in the market today, go to http://paydayloans.money.co.uk/logbook-loans.htm.

3. No credit check

Logbook loan lenders are able to promise quick cash because there is no credit check involved when assessing loan applications. Unlike with other types of loans, the requirements borrowers need to meet are minimal. If you are of legal age, you reside in the UK and you own a vehicle free of financing, you can apply for a logbook loan. You don’t have to think about your bad credit score getting in the way because lenders wouldn’t even look at your credit rating anymore.

Quick cash, high loan offers and no credit check are three of the major advantages you can enjoy when you apply for a logbook loan. But also remember that the financial product also has its drawbacks like high interest rates and risk of vehicle repossession. Before you close and sign any deal, make sure you weigh the pros and cons.