Category Posts : Logbook loan

Your vehicle is the key to excellent loan opportunities with a logbook loan

Logbook loan / 08/09/2016
Logbook-Loans

So you desperately need a loan but all the high-street banks keep turning you down?

Well, do you own a car, a motorbike, a truck, a motor-home or even a caravan? If you do, then you can use them to help secure yourself a logbook loan.

Logbook loans – your vehicle can help secure you much needed cash!

Yes! That’s right. Your vehicle is your ticket to cash. In today’s modern world, everyone is struggling. Trying to make it through each month is becoming more and more difficult. Unstable stock markets, the rising cost of fossil fuels as well as the incredible hikes in food prices mean caring for our loved ones is putting stress on our bank balances.

Many people have already turned to various loan options and unfortunately, through missed payments, bad credit records are on the rise. So if you have missed some payments and have a bad credit record, the chances are that a high-street bank will not give you a loan. And trying at different banks is not the answer, in fact, this goes on your credit record and becomes a massive negative.

So you have to turn to unsecured loan options that do not take your credit history into account. One such option is a logbook loan.

Logbook loans – how do they work?

A logbook loan works on a very simple premise. If you own a car that is less than ten years old, in good condition and has an updated MOT certificate, then you can secure such a loan.

In a nutshell, the lending institution offering a logbook loan will take a look at the overall condition of your car as well as its mileage and offer you a loan based on that and a few other factors. If you accept, they keep the V5 document of your car. This is your vehicle logbook and the loan agreement that you sign will mean that the lending institution owns your car for the duration of your loan.

Why is this necessary? Well, since logbook loans can be for a fair amount of money, the lender needs to know that they have security to fall back on should you default in paying your loan. Now the terms and conditions differ with every lender (so be sure to read them) but if you do default, the chances are that the lender will not repossess your vehicle straight away and give you the opportunity to make up for missing your payment. To be sure however, the best thing to do is to never miss a payment. If you are struggling to make one, rather go into the lender’s office and negotiate with them. They might even restructure the loan for you.

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What information does the lender require?

To secure a logbook loan, the first thing a lender will do is assess your vehicle. Once that has been done, they will normally offer you up to 50% of what it is worth as a loan. Why only 50%? Well again, this is to cover them should they need to take your vehicle and sell it to recover any costs if you default. If they do sell the vehicle for more than you owe, then they are required by law to pay the difference to you.

Once a valuation on your vehicle is done and agreed upon, most lenders need a range of documents to process the loan. Remember to take your ID document, a bill to prove where you reside, your last three wage slips from your employer as well as bank statements for the previous three months. You will also have to have insurance on the vehicle. This protects the lender should you be in an accident or if the vehicle is stolen during the loan period. Please note, you will have to be a citizen of the United Kingdom to apply for a logbook loan or any other unsecured loan for that matter.

Based on the information herein, they will come up with a loan amount, a repayment amount and a repayment length. Rest assured, even if you are self-employed, you can still secure a logbook loan.

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Logbook loans – the benefits

Logbook loans have many benefits.

  • Of course, perhaps their greatest one is that even with a poor credit record, you can secure a logbook loan. It is all about your vehicle and its value.
  • Although you do not own the vehicle during the loan repayment period, you are free to use it daily.
  • Logbook loan APR rates are generally very competitive and far lower than many other unsecured loan options.
  • The turnaround time to process a logbook loan is very quick. In fact, most lending institutions will only need around 24 hours from the start of your application till you see the money reflect in your bank account.
  • Everything can be completed online (in many cases).
  • Even for people who are clueless when it comes to money matters, a logbook loan is easy to understand. Always remember to read all the terms and conditions as well as the fine print, however.

Logbook loans are an excellent way to secure cash in an emergency. If you require any more information about these versatile unsecured loan products, visit justlogbookloan.uk

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How to decide between a payday, instalment or logbook loan

Logbook loan / 26/08/2016
Happy young man shaking hands with salesperson at car showroom. Horizontal shot.

So you need some cash and in a hurry. There are many lenders out there, with many loan options. Sometimes, the waters can be a little muddy in terms of choosing the loan that is the right one for you.

In this article, we will take a look at three popular loan options and how to make a choice between them.

How much do you need to lend?

Start by determining how much you need to lend. Far too often, people actually over-lend. A lending institution offers them more money than they need and they accept. This generally means they waste money on things they do not need and then live with a far bigger instalment than they needed to.

It’s simple really. If you need a little bit of cash to see you through to the end of the month, then a payday loan is the best option. Just lend enough to help you to your next paycheck. Try to avoid a cycle of doing this every month, however.

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If you need a bigger amount of money, then consider an instalment loan. For example, your roof has developed a leak and you need £5000 to repair it. Here, an instalment loan paid over a period that will give you affordable monthly repayments is the best option. Try to pay off the loan as quickly as possible, especially if you have a bad credit rating. This will build up your credit rating in a positive manner.

Now if you own a vehicle and need a bigger amount, say £20 000, then a logbook loan is your best option. Here, the value of your vehicle helps to secure you a loan. The vehicle provides the collateral for the lender, so if you default, they have a legal right to repossess it. Again, this kind of loan has very flexible terms and is available to individuals with a bad credit rating.

How long do you want to repay it over?

Another factor in helping you determine which loan is best for you is repayment terms. As a rule of thumb, you should be trying to repay your loan as quickly as possible. When it comes to a quick payoff time, then a payday loan is a great option, especially for smaller values.

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Should you need more time to repay a bigger loan, then choose between an instalment loan and a logbook loan (but only if you can offer a vehicle as collateral).

What does the lender you have chosen specialise in?

Many people have taken out loans before with specific lenders. If they have treated you well, offer affordable loan options and have brilliant customer support, the chances are you will go back to them.

Many lenders however, specialise in certain types of loans. When needing a loan, you may then choose to opt for the loans they are experts in, especially if it fulfils the other needs highlighted above.

Perhaps the most important thing about taking out a loan is that you make an informed decision. This means taking the time to do some research, not only into which loan option is best for you, but also as to the best lender for you to enter into a contract with.

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