Logbook loans have become more popular over the past few years. However, there are still a lot of misconceptions regarding how they work and who can apply. If you’re looking for an alternative form of finance, a logbook loan could be the perfect option. Carrying out research and learning the truth behind the myths will help you to make a better informed decision on whether it’s right for you.
Myth #1: If you have bad credit you shouldn’t apply
While many lenders won’t consider lending you the money you need if you have bad credit, there are some who will. It just means you’ll have to search a little harder to find a lender willing to accept bad credit. There are even some who will accept applications from those who have had a CCJ. As the loan is secured upon your car, it gives the lender some security that you’ll pay the loan back. That’s why credit rating isn’t always important with this type of loan.
Myth #2: The application process is complicated and lengthy
Thanks to the internet, it’s never been simpler to apply for logbook loans. All you need is your V5 logbook, proof of identification and proof of your address. That’s all you need to get started.
Myth #3: My car won’t be suitable for a loan
Different lenders have different requirements. While some won’t take vehicles that are over 10 years old, there are others that will. Therefore it really pays to compare as many different lenders as you can. The one thing your car model will determine is how much you can borrow. The more expensive the car, the more you will be able to borrow. Always double check that a lender accepts your type of vehicle before applying. Being turned down for logbook loans could be marked on your credit report and make it more difficult to be accepted in the future.
These are the top three myths associated with logbook loans. If you do plan on applying, make sure your vehicle is not currently on finance. If it is you won’t be accepted. The amount you can borrow will be determined by the model, make, mileage and age of your car. There are many logbook loans UK to choose from. Compare your options and be sure to read the small print before you apply for any form of finance. There could be many hidden fees mentioned in the small print that you’d otherwise miss.