There are a number of things that you will want to know when it comes to logbook loans. Many people throughout the UK are getting these loans, but you will need to get the facts so you can make the right overall decision.
In order to get a logbook loan, you must have a vehicle that is 8 years old or less, as well as a steady income and proof of legal citizenship. You will essentially be using your car to get the loan, putting it up as collateral. This is a secured loan, and it can be a great way to get the money you need fast.
The payback period for your log book loan could be anywhere from three months to three years, depending on the lender you choose as well as the amount you borrow. It is important to remember that the longer your payback period is, the more money you will end up spending on interest.
There are lots of benefits associated with logbook loans, including the fact that you do not even need good credit to get one. In fact, these lenders don’t even run credit checks on their applicants. This is a truly great borrowing option for those who have a low credit score and have been turned down by their bank for a loan in the past.
If you are currently experiencing cash flow problems, a log book loan can be an excellent short-term solution. Although the interest rates on these loans tends to be fairly high (between 300 and 400 percent), it can be well worth it if you find yourself in a tight financial situation.
Anyone who has problems with getting a loan because of bad credit should start looking into logbook loans right away. When you get this type of loan, the lender takes over ownership of your car temporarily. Once you pay back the loan in full, you will once again by the sole owner of your vehicle. If you are having money problems, a loan against car could be the right decision.