Logbook loans – highlighting the basics

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To be strapped for cash and not be in a position to access a cash advance simply because you have a poor credit rating is something most people loathe. I mean, things happen in life that are beyond our control that could make our credit score suffer a beating. For instance, the financial turmoil of 2008 was without a doubt beyond many people. Individuals saw their credit scores dip, firms went under and some needed to be bailed out by the government in order to continue operating. While all these things are clearly documented and still fresh in the mind, most financial lenders choose to continue judging people or rather basing their approval or rejection on a person’s credit rating.

The result has been massive rejections and a people increasingly distraught. Well, while this was the order of the day, the introduction of logbook loans brought about a paradigm shift to the loan industry. In essence, logbook loans announced a new era – an era where getting a loan was not pegged on how good a person’s credit score is. Add to the fact that applying for a loan became simple, the icing on the cake was that a person could get access to cash within a couple of hours.

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To the uninitiated, a logbook loan is, in simple terms, a special product where the only security is a person’s car. In other words, you can only be considered qualified for a logbook loan if you legally own a truck, a car, a motorcycle, a van or even a commercial lorry as collateral. What’s more? If you have a poor credit rating or no history at all, you need not worry as logbook loan lenders have little regard for your credit score so long as you can demonstrate the ability to repay your loan.

In fact, individuals who use their cars to generate income for their businesses have found a new ally in logbook loans. When applying for this kind of loan, a person simply signs over their V5 document to the lender. In other words, the lender temporarily becomes the legal and rightful owner of your car for the duration of the loan until all outstanding loan amounts are cleared. However, the borrower does not in any way lose possession of the car. This arrangement therefore, gives business people an ample opportunity to generate income with their vehicles while making repayments.

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What more do justlogbookloan.uk need in order to approve your loan. Well, while the aspect of your credit rating doesn’t play a significant role, it is imperative to note that your car needs to be serviced regularly and in good condition before it can be considered as security. Additionally, it should have been in use for a period not more than 10 years and you also need to furnish the lender with its tax and insurance details. It is also required that you continue paying insurance of the car for the duration of the loan.

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