This is where your vehicle is used as collateral for the money received. These loans are cleared based on the logbook of the vehicle you own.
There is of course a criteria regarding this loan, but for the most part it isn’t too strict as the people wanting this credit need cash quickly. They also tend to be in debt with other lenders and this is a last resort. If you are considering getting this loan, it’s important for you to study other options first.
So I can hear you asking, how do I get a logbook loan? Well first of all, you have to be the primary owner of the vehicle and possess the full log book. This means that there are no financial obligations attached to your vehicle. If your car is on finance, the loan companies require you to be nearing the end of the contract.
The vehicle has to be registered under your name, it cannot be in someone else’s name and you just a named driver. Once you have had the loan accepted you cannot change the ownership of the car, the car simply cannot be sold without clearing the loan first.
If you’re after a Logbook loan, the vehicle must no older than 8 years, be in good shape, fully functioning and looked after properly. To insure that the car is being well cared for and that the insurance cover remains on the vehicle, the owner must have a valid MOT certificate for the entire loan contract. If it’s a new car, then after three years there will be a new MOT inspection.
It’s crucial to keep the car in good shape, but it’s also even more essential to keep up to date with tax and insurance payments whilst the vehicle is under the logbook loan. You will have to have a valid license at all times and solve any problems you may have with the vehicle independently.
If you’re to get a logbook loan, as the owner of the vehicle you have to have a full-time job or a constant steady stream of income. Since this type of loan doesn’t require a credit check, there’s no need to be concerned about your bad credit. These companies are aware that your situation isn’t the best. These loans are specifically designed for those with poor credit and those who are desperate to get out of a situation.
Before applying for a logbook loan, you have to make sure you can comfortably pay back the entire loan at the agreed time. You can work together with the loans company to decipher a plan that will allow you to comfortably pay back the loan. You have to be completely honest about about your situation and what you can afford.
This can be a very convenient way to get money fast. Once you’ve taken your car in for the company to monitor, you can leave in up to 20 minutes with the cash. You just have to be careful as this loan does have very high interest rates. There isn’t a fee if you want to settle the debt early, but make sure each repayment is on time.