For a person who is looking to get their hands on quick cash at very short notice, a logbook loan can be a great way for them to go about it. Logbook loans offer people who need money instantly the opportunity to take out a loan against their car; using their vehicle as security and collateral in the same way that a house would be used as a secured loan.
Securing a car logbook loan can mean that they applicant has the money in their account in as little as 15 minutes, and though there is a monthly interest rate of 20%, meaning for example, that if someone borrowed £100 the charge would be £20 per month, this is still far less than some of the other same day cash lenders, such as Wonga and others who have come under fire for their unethical business practicing in recent weeks and months.
Just about anyone is able to apply for a car logbook loan, and will have a good chance of their application being a success. If somebody fits into the categories below, there is a good chance an application they make for a logbook loan could end positively for them.
Anyone who owns a car
The person applying for the logbook loan using a car or other vehicle (most logbook lenders and lend against older cars, though the prefer them to be less than 10 years old, vans and light commercial vehicles) as collateral must own the car outright and have paid off any other loans that have been taken out against it. It must also be free of finance, meaning that if it was purchased by using a car dealer’s financeterms, the final repayment must have been made if the finance package was secured on the car. On the other hand, if an unsecured loan was taken out to buy the car, for example from a bank or building society, or borrowed from friends or family, then an application can be made no matter how many repayments there are left to make.
People with poor credit history
In perhaps one of the biggest advantages that people can look to make the most of when it comes to logbook loans, the companies offering them are more than happy to deal with people who may have a poor credit history or have had credit problems in the past. These companies are willing to look at people as individuals, and as long as there is evidence that they are likely to be able to keep up with the repayments, the chances are their applications will be successful.
People who will be able to pay back the money
All that the logbook loans lenders are really looking for are people with proper ownership of a car to be used as collateral, and evidence that the people are in a position to make the repayments on time. With both of these in place, it is highly likely that a person’s application for a logbook loan will prove to be a success.