A logbook loan is a type of loan that can be secured against your car. Your car will serve as collateral once the loan against your car is taken out. In order to qualify, you need to own a vehicle that is less than 10 years old and is either almost free or completely free of financial obligations. Once you are issued with the loan you are still able to drive your vehicle.
The amount of loans against cars is actually linked to the value of your car and what type of repayments you will be able to afford. If you have had trouble getting credit from the banks due to a negative credit history, logbook loans are an ideal solution as since the loans against your car are secured against the value of the vehicle, credit checks are not carried out. All that is required is that you can prove that the car belongs to you and is free or nearly free of financial commitments.
To find out about a logbook loan, you can simply fill in the form on our site for a no obligations, free quote. You must be 18 years or older to be eligible for the loan and must be in possession of the vehicle’s logbook. There should be no other financial loans on the logbook at time of application or money owed to the car dealer or bank.
Logbook loans are a perfect solution for unexpected emergencies such as too many bills or a family crisis. They provide cash quickly since the process is fast requiring no credit check and very little paperwork. The fact that credit checks are not undertaken is one of the biggest appeals of these types of loans as people who have missed payments or filed for bankruptcy are able to qualify. Money is issued literally within a matter of hours to a day. Should you repay the loan on time each month and essentially finish paying it off, logbook lenders may report the positive dealings to the credit bureaus, helping to bring credit ratings back into your favour.
Having the spare cash can go a long way to providing you and your family with the funds needed to pay unexpected bills, make repairs to your home or help fund any other sort of emergency. Logbook lenders will have you sign papers stating that you agree to pay back the money over a certain amount of time. They will keep your logbook for the duration of the loan and return it once the last payment has been made.
If you’re considering getting a loan against your car, consider your current budget and add the payment to the logbook lender to ensure that you can afford to pay back the loan. You will still be responsible for the maintenance of the car, insurance, licenses and taxes and these should also be considered. An MOT inspection will be required before the loan is granted and every couple of years after that.