Introduction To Logbook Loans
Whilst most people these days have heard of payday loans, logbook loans are not quite so well known amongst the general population. This is a shame as logbook loans can often work out to be better options for borrowers than payday loans.
Below is a brief overview of this lesser known yet often very viable type of loan.
What Exactly is a Logbook Loan & How is One Approved?
In essence, a logbook loan is a loan that is offered against the value of a borrower’s car. Loans of this kind can only be offered to people aged 18 or over who are resident in the UK and own their vehicle outright. To get one of these loans, borrowers simply need to apply online.
Logbook loans will only be approved after a borrower’s vehicle has been inspected and valued by a trained professional. Once the car has been valued, the applicant will need to prove they have a certain amount of money coming in each month as lenders need to be reassured that they will receive the agreed repayments each and every month. If all of these pre-requisites are met to the lender’s satisfaction then a borrower will more than likely receive their agred loan amount the very same day (sometimes in just a matter of hours).
How Much can be Borrowed?
The amount of money an individual can borrow depends on two key factors: the terms and conditions imposed by the lender and the value of a borrower’s car. Some logbook loan providers offer loans of up to £50,000 these days so borrowers can look forward to accessing very significant amounts of money indeed if they own vehicles that are deemed to be of sufficient valuable.
Can Unemployed People Take Out Logbook Loans?
The most important pre-requisite of a logbook loan is that an applicant must be able to repay it. Repayment can come from any number of sources; therefore it is not critical for potential borrowers to be employed. Indeed, applicants who are unemployed and on benefits can still be approved for a logbook loan if they are confident they will be able to make the repayments and are willing to share exactly how it will be repaid with the lender.
Can Self-Employed People Apply?
Most logbook loan companies these days are quite happy to lend money to self-employed people as long as they can prove their monthly incomings are sufficient enough to meet the monthly repayments. Obviously, the more an individual borrows, the higher the repayments will be, so it is vital that self-employed applicants are honest (with themselves as well the lender) about their incomings and outgoings.
What About People with Bad Credit?
Most logbook loans don’t need to take an individual’s credit history into account. Indeed, most lenders take the fact that an applicant owns their own vehicle as being evidence enough of good credit therefore they don’t need to carry out a credit check to decide whether or not they will authorise a loan.