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People take out loans for a variety of reasons. Whether you need money to clear college fees, deal with a medical emergency or settle any other important bill, sometimes a loan is the only way out. There are various types of loans to choose from. Your choice depends on your circumstances, the conditions set by the lender and your ability to repay among other factors.
If you find yourself in a financial tight spot and you own a car, you have the option to get a loan on your car. With logbook loans in the UK, you use your car logbook as collateral for the loan. The amount of loan you will be offered will depend on the current value of your car. Most lenders offer between 50% and 60% of the value. The repayment period will be agreed between you and the lender.
One of the best things about a logbook loan is that the loan provider will not require you to hand over your car at all. You will be free to keep using your car as you continue to service the loan. The only way you can lose ownership of the car is if you default payment. As long as you are paying your monthly installments as agreed, you have absolutely nothing to worry about.
Whether you need financing for your business or for personal reasons, it is important to explore all the options available to you. This type of loan could be useful to those with a poor credit history.
The onus is on you to decide whether this loan is appropriate for you or not. While there are people who have reaped the benefits of the loan, there are some who struggled to repay for various reasons. Always weigh all your options before making any decision.
If bad credit is preventing you from getting approved for other types of loans, you could consider taking out a logbook loan. However, it is important to have a clear understanding of the loan to avoid getting into any trouble.
This is a major advantage, especially for people with unfavourable credit scores. As long as your car can be used as security for the loan, it will be availed to you. So if you have previously defaulted on other loans and you are running out of options, this could be the loan for you.
Most borrowers who take out logbook loans find them very attractive due to the fact that they can be approved within a very short time. In most cases, it takes a few days for the loan to be approved, processed and credited into the borrower’s account once they meet the requirements.
With your car securing the loan, you have a great chance to get a larger amount than you would get with other loan options. The value of the vehicle is one of the major determinants of the loan amount. You can also be able to negotiate the most favourable repayment period.
In most cases, even a layman can be able to understand the stipulations of a logbook loan. Most lenders make the interest and repayment costs very clear. In fact, these details are easily accessible on their websites. Of course, you should always check and ask questions to see if there may be any additional charges.
With certain loan types, the borrower is required to repay the entire amount plus interest and fees in a single lump sum. That is not the case with logbook loans because you may be able to set a repayment schedule you are most comfortable with.
You can use a logbook loan for any purpose. The lender will not require you to provide a breakdown of how you want to spend the money. As long as you have full ownership of your car and it is in good condition, you’ll likely be eligible for the loan. With that being said, it is important that you take the loan for the right reasons and use it strictly for the intended purpose.
While the benefits of taking out a logbook loan are there for all to see, there are certain circumstances that may compel you to pursue other options. Asking the right questions will put you in a great position to know what your best option is.
One of the main conditions of this loan is that you should have full ownership of your vehicle when making an application. If your car has been used to secure another loan or it was purchased on credit, then that means that you may not fully own it yet. If that is the case, then you wouldn’t be eligible for a logbook loan.
If you are not in a position to repay the loan within the agreed period, then this is not the loan for you. The last thing you want is to default on your payments and end up giving up ownership of your car. If you don’t have a reliable source of income or you don’t intend to invest the funds in a money-making venture, then don’t take that risk.
Logbook loans have come to the aid of many people who found themselves in situations in which they needed urgent cash. If you want to reap the full benefits, make sure you apply for an amount you can afford and avoid misusing the money once you get it.