Why should I get a logbook loan?
People apply for logbook loans for several reasons but the main one is that they are available to people with poor credit, who may have been refused a loan through the traditional routes. So whether you are having difficulty getting approved for other types of loans because of bad credit, or you just need to raise some cash as soon as possible, a logbook loan could be your perfect alternative.
Am I Eligible?
If you live in England, Wales or Scotland, own a vehicle that is fully insured and free from significant debts, and are over 18 years of age, you are eligible to apply for a logbook loan.
What do I need?
You’ll need your logbook, MOT certificate, valid photo ID, proof of current address and valid proof of income in order for the Lender to assess your affordability. They’ll also need to see your car to determine its value and how much they can lend you.
How much can I borrow?
You could borrow anything from £250 all the way up to £50,000. The amount for which you are eligible will be calculated based on the value of your vehicle and how much you can afford to pay on a monthly basis.
Where can I use the money?
There are no restrictions on how or where you spend your loan – once you’ve been approved subject to affordability, the money is yours to spend how you wish
When can I get the money?
Logbook loans are popular because customers know they could receive the cash almost as soon as the full application is approved. Therefore you could receive your money on the same day.
How long will I have to pay?
The length of the term depends on the amount you borrowed, the interest rate, and your ability to make payments. If you can afford to make higher repayments during the loan term you’ll be able to minimize interest cost and finalise the contract in a shorter period. The sooner, the better.
What happens to my vehicle?
Your vehicle is used as security against the loan so you must provide the Lender with the logbook (V5 document) to hold onto throughout the term of the loan. But the beauty of a logbook loan is that you get to drive the vehicle whilst you pay off the loan, as long as you continue to meet your contractual repayments. Once you’ve completed your loan, you’ll get the logbook back.
What if something happens to my car during the loan period?
As you’ll be driving the vehicle throughout the loan period, you’ll be responsible for it’s upkeep and any damage caused.
Is a logbook loan for me?
As with all loans, a logbook loan is suitable for particular situations. We would always suggest you explore all options before making a final decision. There are risks involved, and in worst case scenario your vehicle could be repossesed.