So you desperately need a loan but all the high-street banks keep turning you down?
Well, do you own a car, a motorbike, a truck, a motor-home or best options trading platform even a caravan? If you do, then you can use them to help secure yourself a logbook loan.
Logbook loans – your vehicle can help secure you much needed cash!
Yes! That’s right. Your vehicle is your ticket to cash. In today’s modern world, everyone is struggling. Trying to make it through each month is becoming more and more difficult. Unstable stock markets, the rising cost of fossil fuels as well as the incredible hikes in food prices mean caring for our loved ones is putting stress on our bank balances.
Many people have already turned to various loan options and unfortunately, through missed payments, bad credit records are on the rise. So if you have missed some payments and have a bad credit record, the chances are that a high-street bank will not give you a loan. And trying at different banks is not the answer, in fact, this goes on your credit record and becomes a massive negative.
So you have to turn to unsecured loan options that do not take your credit history into account. One such option is a logbook loan.
Logbook loans – how do they work?
A logbook loan works on a very simple premise. If you own a car that is less than ten years old, in good condition and has an updated MOT certificate, then you can secure such a loan.
In a nutshell, the lending institution offering a logbook loan will take a look at the overall condition of your car as well as its mileage and offer you a loan based on that and a few other factors. If you accept, they keep the V5 document of your car. This is your vehicle logbook and the loan agreement that you sign will mean that the lending institution owns your car for the duration of your loan.
Why is this necessary? Well, since logbook loans can be for a fair amount of money, the lender needs to know that they have security to fall back on should you default in paying your loan. Now the terms and conditions differ with every lender (so be sure to read them) but if you do default, the chances are that the lender will not repossess your vehicle straight away and give you the opportunity to make up for missing your payment. To be sure however, the best thing to do is to never miss a payment. If you are struggling to make one, rather go into the lender’s office and negotiate with them. They might even restructure the loan for you.
What information does the lender require?
To secure a logbook loan, the first thing a lender will do is assess your vehicle. Once that has been done, they will normally offer you up to 50% of what it is worth as a loan. Why only 50%? Well again, this is to cover them should they need to take your vehicle and sell it to recover any costs if you default. If they do sell the vehicle for more than you owe, then they are required by law to pay the difference to you.
Once a valuation on your vehicle is done and agreed upon, most lenders need cheapest options trading site a range of documents to process the loan. Remember to take your ID document, a bill to prove where you reside, your last three wage slips from your employer as well as bank statements for the previous three months. You will also have to have insurance on the vehicle. This protects the lender should you be in an accident or if the vehicle is stolen during the loan period. Please note, you will have to be a citizen of the United Kingdom to apply for a logbook loan or any other unsecured loan for that matter.
Based on the information herein, they will come up with a loan amount, a repayment amount and a repayment length. Rest assured, even if you are self-employed, you can still secure a logbook loan.
Logbook loans – the benefits
Logbook loans have many benefits.
- Of course, perhaps their greatest one is that even with a poor credit record, you can secure a logbook loan. It is all about your vehicle and its value.
- Although you do not own the vehicle during the loan repayment period, you are free to use it daily.
- Logbook loan APR rates are generally very competitive and far lower than many other unsecured loan options.
- The turnaround time to process a logbook loan is very quick. In fact, most lending institutions will only need around 24 hours from the start of your application till you see the money reflect in your bank account.
- Everything can be completed online (in many cases).
- Even for people who are clueless when it comes to money matters, a logbook loan is easy to understand. Always remember to read all the terms and conditions as well as the fine print, however.
Logbook loans are an excellent way to secure cash in an emergency. If you require any more information about these versatile unsecured loan products, visit justlogbookloan.ukRead Article