If you have bad credit because you made bad financial decisions in the past, you’ll have no other choice but to pay for the consequences today. One of the major consequences of bad credit is your limited loan options. It won’t be easy obtaining a mortgage loan, for example, if your credit rating is less than perfect. In the end, you’ll be left with high interest rate unsecured loans for options, which won’t necessarily meet your needs.
In case you need a larger amount than what any unsecured loan can offer, this is where logbook loans come into play. Here’s your quick guideline to help you understand the loan product better:
What are logbook loans?
Logbook loans fall into the category of secured loans. This means that you must be a vehicle owner to avail this loan type. Because lenders have guarantees other than your promise to repay, they can lend you higher loan amounts generally from £500 up to £50,000 with repayment terms between 6 months and 24 months. It can be longer depending on the amount of loan and depending on your agreement with your lender.
Who can apply for this type of loan?
Anyone who meets the basic requirements can apply for a logbook loan. If you are at least 18 years old, you live in the UK and your vehicle is free of any financing then you are eligible to apply for a logbook loan. If you have bad credit and you meet the aforementioned requirements then all the more that you are welcome to apply. Logbook loans, in fact, are specific for borrowers with bad credit. Just prove that you have sufficient monthly income and you’re willing to secure your loan against your vehicle then your loan application is good as approved.
Why apply for a logbook loan?
You should apply for a logbook loan if you are in need of a large amount of money but you can’t otherwise apply for other types of secured loans. If you have bad credit and are left with no choice, logbook loans are an ideal last alternative. Not only can you borrow a larger amount with secured loans but you can also expect to receive the cash within a day. More importantly, you won’t have to worry about credit checks anymore. Lenders only need you to meet the basic requirements so they can approve your loan application fast.
What are the risks to carefully consider?
Though advantageous in several ways, it is worth noting that logbook loans also have risks to carefully consider. Logbook loan lenders may easily approve your application but you ought to remember that this loan option come with the risk of repossession. Since you agreed to put your vehicle at risk, your lender has the right as per the debt agreement to recover your collateral if you can no longer repay your loan.
High interest rates are another risks to take into account. Because you have bad credit, except to avail logbook loans with high-interest rates typically at 400% representative APR.
Where to find the best logbook loans?
If you’re ready to face the risks involved with borrowing a logbook loan, you can find the best logbook loan deals online. You can visit website right here to compare deals at much cheaper interest rates than the market average. If you’re ready to apply, just complete the online application, provide the necessary details and wait for further instructions. If you’re not ready to apply yet, you can request a quote at no charge and decide later.