What Are Logbook Loans?
Logbook loans are short-term loans that are secured against your vehicle. The lender owns the vehicle until the loan term is completed and you have paid back the loan amount in full. However, you can keep on using the vehicle as long as you repay the loan. So, in simple words, logbook loans allow you to borrow money from the vehicle you already own.
Moreover, note that the interest rate of a logbook loan is generally higher, and taking it out can be risky. Therefore, you must look for better and more reasonable alternatives, if you have any.
Why Should I Choose A Logbook Loan?
Whether you need funds for your business or personal reasons, it's always important to look into your choices. In addition, those with a bad credit history may benefit from this type of financing, i.e., logbook loans.
It is up to you to determine whether or not this loan is appropriate for you. While some people have benefited from the loan, others have struggled to return it for various reasons, the root cause of which is the higher interest rates. Therefore, before making a decision, consider all of your possibilities.
Benefits of Log Book Loans
Before signing up for a logbook loan, let us look at what are the major advantages that logbook loans offer you. The following are some of the benefits of logbook loans:
No Credit Check Required
If a bad credit score hinders you from getting a loan, a logbook loan can help you solve the problem. This is because a logbook loan offers you the funds taking the vehicle as collateral, and thus, lenders don't consider your credit history.
Most logbook loan borrowers find the time taken for approval of a loan quite appealing. Once the borrower meets all the application requirements, the loan is authorized and credited into their bank account within a few days.
Prospect for a Large Loan Amount
You have a better chance of getting a larger loan amount with your vehicle as collateral than with other loan options. One of the crucial variables of the loan amount is the vehicle's worth. You may also be able to work out the most favorable repayment schedule.
Transparent Terms and Conditions
The terms of a logbook loan are usually simple enough for even a layperson to comprehend. The majority of lenders make the cost of interest and repayment clear before entering into a contract. Of course, you should always double-check and ask questions to ensure that there are no hidden fees.
Repay in Regular Installments
Unlike some other types of loans where you have to pay the entire loan principal, interest, and fees in a single payment, you can pay logbook loans in affordable installments. In fact, by negotiating with the lender, you can set a repayment schedule that suits you the best.
No Restrictions on the Fund Usage
You can use a logbook loan for any purpose. You will not be required to offer a breakdown to the lender of how you intend to spend the money by the lender. You'll most likely be authorized for the loan if you have full ownership of your car and it's in good working order.
Will My Car Be Suitable For a Loan?
To be considered suitable for loan collateral, your car must meet the following requirements:
Free from Financing
The car you wish to present as collateral must be free (or almost free) from financing.
Get Enough Value to Cover the Entire Loan Amount
As mentioned earlier, the logbook loan amount is determined by the car's value as it is secured against your vehicle. Therefore, your car's value must cover enough to cover the entire amount of money you wish to borrow.
The Car Must be Taxed, MOT’d, and Insured
For your car to qualify for the loan collateral, it must be taxed, pass the Ministry of Transport (MOT) Test, and have third-party liability insurance.
What May Prevent You from Getting Logbook Loans?
You may have understood by now that one of the most important requirements for you to get a logbook loan is car ownership rights. If you do not own a car title, you will not be eligible for getting a logbook loan.
Ability to Repay the Loan
Although logbook loan lenders do not check the credit history, they do assess your ability to repay the loan. The last thing you want to do is the default on payments and lose the ownership rights of your car.
Best Price for Book Loans
UKCreditLoans was envisioned to help those who need to borrow money, and we don't want to add to the borrower's financial hardships by linking them with lenders charging exorbitant internet rates. On UKBadCreditLoans, you can look for lenders that provide the best value and most transparent terms and conditions. Furthermore, we can guarantee you that the lowest rate that you can find from any other platform will still be 10% higher than the lowest rate our lending partners offer.
Logbook loan terms generally range from one year to three years- which you have an option to choose from. Moreover, you can pay your loan early without any penalty fee or additional interest rates if you feel like it.
UKBadCreditLoan platform allows the potential borrower to compare and choose the best possible lender. You can apply for a logbook loan within minutes, and it takes not more than a few hours to get approval. Some lenders may even credit the loan amount in your bank account within the same day of applying. UKBadCreditLoan ensures that the loan processing is as smooth and instantaneous as it can get.