JoshYou must have heard about logbook loans, especially when your financial situation reflects a bad credit and when you reside in the UK. You must be aware of the challenges that you’re likely to meet while persuading a high street bank regarding loan advancement. A poor credit rating is likely to hinder the process as it happens with all other UK citizens.
You may have already applied for loans in the past, but all of your applications may well have been turned down. It’s then that you’ll start looking for options that don’t demand a scrutiny of your credit score. The logbook loans are your best bet in case you don’t want your credit to be scrutinized.
Logbook loan providers consider your car as security while processing your application.
You may show your car as security for obtaining cash from a logbook provider. However, you don’t get your car repossessed in this case. The best thing about this is that you may continue to drive your car throughout the period of loan repayment. Signing the bill of sale agreement before your loan gets approved will transfer the car ownership to the loan provider. When it comes to repossessing your car, the lender doesn’t need to file a lawsuit if he has this bill of sale document.
Logbook loans depict a number of merits:
No credit checks are required
The UK law mandates a loan provider to run credit checks before issuing a cell phone contract or a loan. However, the outcomes of these checks have little impact on whether your loan gets approved or not. You won’t need to worry about your defaulting payment history or your bad credit rating if it’s regarding approval of your loan.
Simplicity of requirements
Logbook loans may lead you through a tougher situation, unlike traditional loans that demand more paperwork and other associated requirements. Things tend to look different with logbook loans. You must show a regular citizenship proof, income proof, address proof, the V5 document, and proof of age for proving your eligibility. By fulfilling these requirements you’ll be able to submit your logbook loan application without any hiccups.
Ability to qualify for a higher loan amount
If you’ve opted for payday loans in the past, you must have noticed that the providers issue small amounts and the repayment periods extend between a quarter and a bad credit. Logbook loans yield a great loaning opportunity as a borrower can apply up to 70% of the current value of his vehicle.
Longer repayment period
The logbook loans repayment period may be stretched up to 78 weeks so that you find more time to repay it. Such repayments can be made depending on the schedule that you’re comfortable with. Your car stands the chance of being repossessed when you begin defaulting on your repayments. Then you won’t have any other option at hand. You must also remember that pulling out of debt is often an uphill task. So, you must analyze your financial situation prior to submitting your loan application.