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Aug 19

Frequently asked questions people have when considering a logbook loan

Posted by:Stephen Anderson

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...

Will I get to keep my car? Some 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 repossess your car.

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 like 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 borrow? Unfortunately, it is impossible to say, as this all depends on your situation and the lender you go for. Nonetheless, in general you can expect to borrow up to 70 per cent of your car’s current worth, provided the lender is sure that you can afford the repayments.

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, however, 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 of approval.

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, but it does mean you have a chance, which is much more than you will find with some more traditional methods of borrowing.

With all these questions having been answered, one must remember that the vehicle may be repossessed in the event of the failure to keep up with the repayments. The loans are subject to the affordability of the borrower and also their age, which should be above 18 years.

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.

Summary – A logbook loan is one of the most popular borrowing methods nowadays and thus it is only right that there would be lots of questions surrounding this option. This post aims to answer them.

Author bio – Stephen Anderson runs a blog that is dedicated to providing tips on the best ways to save money and the best loan solutions, including extensive info on a logbook loan.

Borrow with confidence

Borrow with confidence

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350.5%APR Representative
Representative example: Loan amount £1000. Duration 18 months. Repayable by 16 monthly repayments of £170.42 and one of £198.42 (includes Bill of Sale registration fee of £28) commencing two months from the date of the loan. Total amount repayable £2925.14. Rate of interest 187% per annum fixed. Representative 350.5%APR. LOANS ARE SECURED ON YOUR CAR. The vehicle may be repossessed if you do not keep up the repayments.