There are many different reasons why individuals find themselves in a situation whereby they need to borrow money. No matter why you may have arrived at this issue, the good news is that there is help available. One option is a logbook loan. This is one solution that a lot of people tend to turn to. It is a loan that is secured against your car. In this post we will answer some of the most common questions people have in relation to this lending option. So, keep on reading to find out more…
Is this suitable for me? If you are in a small financial situation, a logbook loan could be ideal. However, if you have been in an accident, it makes sense to work with a car accident lawyer instead.
Will I get to keep my car? Most people are worried that if they opt for a logbook loan they will lose access to their vehicle. Luckily, this is not the case. Instead, you merely need to hand over your car’s V5 logbook – hence the name of the loan. Nonetheless, if you fail to make the repayments you have agreed to, the company could seize your car until you do.
What do I need to be eligible for a logbook loan? Firstly, you will need to be over the age of 18 years old and you will need to be able to prove that the vehicle is yours and has been paid for in full. Aside from this, the car’s MOT, insurance and such must be up to date. You also have to show that you are a credible person to lend to, i.e. you will be able to make the loan repayments. This is generally what will be asked from you, however depending on the lender, you may be asked for additional information and/or documents.
How much money will I be able to lend? Unfortunately, it is impossible to say how much money you will get, as this all depends on your situation and the lender you go for. Nonetheless, in general, you can expect to lend up to 70 per cent of your car’s current worth.
How long will it take for my application to be accepted or declined? Again, this is impossible to answer, as every application is different. Your application may be quick to evaluate, whilst someone else’s may be more complex and thus take a lot longer. It is therefore difficult for lenders to state a time limit on the approval process, yet they can promise a quick deposit of money once the loan has been approved. A lot of the best lenders will promise to have the cash in your bank account within a mere 24 hours.
I have a bad credit history; can I apply for a logbook loan? The short answer to this question is ‘yes’. Lenders are willing to consider individuals with a bad credit history or indeed no credit history at all. This does not mean that you will be accepted. However, it does mean you have a chance, which is much more than you will find with most traditional methods of lending.
These five questions are the main ones individuals usually have before taking out a logbook loan. Hopefully these will have answered any concerns you may have.
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