Logbook Loans – Requirements To Get One

Logbook Loans – Requirements To Get One
A consumer who is in need of cash can use logbook loan by using their vehicle as a guarantee for the amount gotten in the loan. There are a certain criteria for the ability to get such type of loan, but it is mostly for the people who are not interested in getting a credit check and are in need of having quick cash.

A logbook loan is given to the person who has a clear logbook. This means that there are financial obligations related with the vehicle. If there is any insurance or tax attached with the vehicle, then it will have to be paid before you get the loan. The vehicle also should be on the name of the person who is asking for the loan. It has to be of that person only and not someone else’s. It should remain in the name of the recipient during the time of the loan. The vehicle also cannot be sold during that time.

Moreover, the vehicle being offered as a collateral for the logbook loan should be in good condition and shape and should not be used for more than 10 years. The owner should also have a MOT certificate on the vehicle. Apart from keeping the vehicle in a perfect shape, the owner also has to pay off all the insurance and taxes on the car.

Apart from all these things, the owner of the vehicle should also have a steady job or a regular source of income to get a logbook loan. The reason behind is that the owner of the car can easily payback the loan in the required time. As this sort of loan do not need a credit check, the person getting the loan do not need to worry about his bad credit history. In fact these loans are made for the persons who have bad credit so that they can quick cash in return for their vehicle. Before applying for the loan, the vehicle owner should ensure that he can easily payback the money in the scheduled time.

Dispelling Common Myths Associated With Logbook Loans

     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.