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The last time I checked, applying and getting approved for a loan was pretty much an involving task. It was, in retrospect, a strenuous process that involved too much paper work and dragged on end. In fact, the experience was not pretty for UK individuals with a poor credit rating. A person had to make applications with various lenders with the hope that one would be lenient on their credit status and approve their application. As if that was not hellish or frustrating enough, getting an emergency loan was an impossibility. It was simply impossible to get approved for a loan within 24 hours especially if you had a poor credit rating.
For long, this was the accepted phenomenon until logbook loans became a reality. Using ones car as security, logbook loans have indeed become popular among UK individuals with a poor credit rating. To qualify for a UK logbook loan, a person needs to have a car registered in their own name, to be a citizen of the UK, to be a person of sound mind, to be in employment and to be a person of 18 years and above. If you meet the basic requirements aforementioned, getting a logbook loan within 24 hours should be a walk in the park if you approach the right lender.
How do logbook loans work?
When thinking of applying for a UK logbook loan, you should first ensure that you meet the aforementioned basic requirements. The next thing is to find a prospective UK logbook loan lender that offers affordable logbook loan deals. You can make an application online or you can do so from the brick and mortar premises. You need to provide your logbook loan lender with your car registration to enable them ascertain whether the car is fit to be used as collateral or not. Essentially, only cars that have been on the road for less than 10 years are accepted as collateral in order to avail a logbook loan. What happens is that after your application is approved the cash you applied for will be availed to you in 24 hours or according to your agreement with the lender. You do not lose possession of your vehicle but continue to utilize it for the duration of the loan. This is an aspect that business people find attractive as they can continue to use their vehicles to generate income while repaying their loan. The duration of repayment is up to 78 weeks hence giving a person flexibility to plan out their repayment.
What additional documents are required in order for your logbook loan application to be a success?
Apart from the aforementioned basic requirements, there are additional documents required before you can successfully apply for a logbook loan. For one, you need to produce a Ministry of Transport (MOT) certificate showing that your car is in good condition. You also need to avail utility bills as proof of address as well as bank statements to ascertain that you receive a regular income. Your car insurance as well as tax details also need to be in order and you can be rest assured that this useful site will expound more.
Demerits of logbook loans
In as much as logbook loans have bridged the gap between those with a poor credit score and those with a healthy credit score in so far as access to emergency loans is concerned, the truth of the matter is that there is also a downside to logbook loans. For one, the interest rates for logbook loans are very high and a person can end up repaying up to twice the principal amount. Secondly, there is also the risk of repossession should you be unable to repay your loan according to plan.