Have you found yourself in a position where you need to borrow money? Perhaps you have had unexpected repair costs to deal with? Maybe you have received a shockingly high bill in the post? Whatever the reason may be the good news is that there are various different solutions at your disposal, and one of these is a logbook loan. Read on to discover everything you need to know about this lending option…
What is a logbook loan?
There is only one place to begin and this is with revealing what this loan actually is. Logbook loans are secured against vehicles. You will usually be able to borrow up to 70 percent of your car’s current worth. Despite what a lot of people may believe, you do actually get full use of your vehicle. The only way the company will take your car from you is if you fail to meet the repayment terms you have agreed to.
Who can apply for this type of loan?
Well, you will need to be over the age of 18 years old and you will, of course, have to have a full driving license. In addition to this, you need to prove that the vehicle in question is yours and that it has been paid for in full. Insurance and MOT will also need to be up to date. You can get good car insurance quotes online if you need to sort this. One of the most important things you need to show is that is able to make the repayments. Therefore, you will need to provide the lender with income slips or similar. These are the general requirements. It is not uncommon for companies to ask for other information or documents. Thus, don’t be alarmed if they do.
What are the benefits associated with logbook loans?
There are lots of advantages associated with logbook loans. First and foremost, there is a great chance of you finding repayment terms you are happy with, as there are lots of lenders offering various different solutions. In addition to this, a wide range of applicants is considered. This includes those that have a bad credit history, as well as those that have no credit history at all. This, of course, does not guarantee that you will be accepted. Nevertheless, you shouldn’t rule out the chances of being granted a loan.
What should I consider before applying for one?
There are various factors you need to take into account to make sure you get a loan you are happy with. Firstly, make sure the lender has a great reputation and a lot of experience. Read reviews that have been left by previous customers to ensure they have been happy with the loan and service they received. Moreover, don’t be blinded by the sum you are offered. Make sure you are happy with the repayment terms and that you feel confident you can pay the loan back.
So there you have it – all you need to know about logbook loans, one of the most popular lending options nowadays.