Breaking Down the Logbook Loan
Logbook loan is a secured type of loan, which primarily targets people with poor credit, who would be unable to qualify for a regular loan otherwise. This type of loan, also often referred to as”V5 loan”, gets its name from the fact that the borrower has to put the logbook document of his or her vehicle as a collateral or security against it. This also means that the lending company will have legal rights over the vehicle for the duration of the loan, including the right to sell it in case the borrower defaults on payments. Of course, once the loan is paid in full, the logbook document will be returned to the owner.
This loan allows the borrower to withdraw between £500 and £50,000 from the car within 24 hours. The amount will depend on two things: the borrower's monthly income, which shows his ability to repay it and the value of the car itself.
Logbook loans provide an excellent option for people with bad credit to borrow money as they don't have a credit check. As such, a person who has been rejected before by a lender due to his credit score, can obtain one provided he has a car or other vehicle.
Who can Benefit From Logbook Loans?
These loans are primarily aimed at people who have bad or no credit rating and who would otherwise find it very difficult to apply for a loan somewhere else. However, that doesn't mean that they can't be used by someone else. Quite the contrary, these loans can be used by anyone, as long as they own a vehicle no older than 8 years.
Also, let's not forget that in a time when most lending options include a long wait for the money to be deposited on your bank account, an option such as a logbook loan can be very useful. Using this loan, you can receive the money on your account in less than 24 hours. So, logbook loans can also be used by people who just need some quick cash to pay an urgent expense.
What are the Advantages of a Logbook Loan?
The biggest reason why you should consider taking out a logbook loan is that you can borrow cash despite the fact that maybe you have bad credit. Of course, you still have to be 100% positive that you will be able to make repayments and that, of course, you qualify for this type of loan.
Another reason why you might consider applying for a logbook loan and not some other financing option, is the fact that the requirements are very easy. Apart from the fact that it doesn't include a credit check, there is also very little paperwork here. In fact, if you are:
- 18 years or older
- Resident of England
- Vehicle owner (the vehicle has to be fully insured and free of finance)
Then you are a good candidate for this form of loan. To know more about the logbook loan requirements, you can check out SimplyLogbook.
Next, lending companies that offer V5 loans are also far from being overly rigid when it comes to payment terms. They will allow you to extend or shorten the loan term depending on your current or perceived future financial situation.
Logbook loans are also available almost right away. Unlike standard loans, the cash from these loans will be on your account in 24 hours or less, which makes it ideal to pay urgent bills.
Finally, using this loan doesn't mean that your vehicle will be taken away from you. You will still be able to drive your car.
How We can Help You
Hopefully now you know a bit more about logbook loans than you used to. Perhaps you are thinking about applying for one somewhere, but are not sure which lender you can trust. You must have heard a lot about unscrupulous loan companies and are not very eager to jump into that “shark pool” without getting the right info.
This is where we at Festival Loans come in with our years of understanding this market. Using our network of reliable and trustworthy partners, we can compare the best logbook loan deals in the market for you and find the one that suits you the most.