Posted on July 23, 2016
The runaway cases of UK individuals with a poor credit rating getting denied access to loans greatly informed the unveiling of logbook loans. UK citizens with a poor credit rating and in need of an urgent loan found the going tough as majority of high street banks wouldn’t consider them for a loan. Logbook loans were specifically unveiled with bad credit people in mind. A logbook loan is in essence a special type of loan facility where a person’s van, motorcycle or even car is used as collateral. In simple terms, if you legally own a car, you can set it up as collateral and get access to cash without having to worry about credit checks or the status of your credit score. So what are the benefits of applying for logbook loans?
You do not lose possession of your car
In a logbook loan scenario, you only surrender your car logbook to your lender but keep possession of your car. You therefore can still make use of your car to generate income as you repay your loan. Your daily routine will therefore not be affected when you apply for a logbook loan.
Suitable for emergency loan
If you have bad credit, you will agree with me that your options narrow considerably especially when you are in need of an emergency loan. Your car may have broken down, you may be in need of emergency medical cash. Your garage may need repair urgently and hence the need for an emergency loan. Logbook loans are mostly processed within 24 hours or 48 hours in the latest and therefore suitable when in need of cash urgently.
No credit checks
Perhaps this is the most outstanding benefit of logbook loans. You don’t need to worry about credit checks when applying for logbook loans. You are free to apply and get approved for a logbook loan irrespective of whether you have a history of CCJ, defaults or arrears. If you want to find out more tips about this, click here.
Eligibility criteria is quite simple and straightforward
To qualify for a logbook loan, you need to be a UK citizen, a person in employment, a person of sound mind, to own a car legally registered in your own name and to be above the legal age of 18 years. Your credit history is not an issue and neither is it a stumbling block.
You borrow what you require
Logbook loans give you the perfect opportunity to borrow exactly what you need based on the official trade value of your car. Most UK logbook loan lenders advance up to 75% of your current car value hence making logbook loans perfect for borrowing the amount of money you need.
Easy to apply and understand
There is nothing rocket science about logbook loans. The model is simple and easy to understand. Application can be done online or from a brick and mortar office and the terminologies are quite easy to grasp. The application process is simple, the requirements are basic and you get access to your cash in the shortest time possible.