What Are Logbook Loans?
If you ever end up needing an urgent loan to deal with an unexpected expense, then you always have the option to take out a line of credit on your vehicle. And in such cases, if you end up going to a credit lender to borrow money, then you will be taking out what is commonly referred to as a logbook loan.
In most cases, the amount of money that you will be offered will usually depend on your car’s current value. However, most logbook loan direct lenders will offer between 50% and 60% of the car’s value, while the repayment period will often vary depending on the terms that you agree upon with the lender.
The benefit of log book loans is that even with a poor credit history, you can still borrow money, and the logbook loan direct lender will not require you to hand your car over, either. You will only ever lose car ownership, if you default on your loan, so as long as you make your monthly payments on time, you have nothing to worry about.
These loans are also easy to apply for, as you can secure a log book loan online by heading to PaydayLoansUK, where we will connect you with the best logbook loans UK lenders.
How Does Payday Loans UK Compare?
|Why Use Us?|
|What is the maximum amount I can borrow?||Up to £5000||Instant approval|
|Will I be considered if I have bad credit?||Yes||Bad Credit Considered|
|Interest rates (variable)||49.7%||Zero paperwork|
|Loan repayment terms||1-36 months||Flexible repayment|
|Will I be credit checked?||Yes||Will perform credit checks as for financial regulations|
|How do I apply?||Apply online||Simple application form|
Benefits of a Logbook Loan
Bad Credit History Considered
Since your vehicle can be used as security, most log book loans direct lenders are open to extending you a line of credit, so you still have a chance to secure a log book loan online, even if you have a poor credit history.
Speedy Loan Assessment
Borrowers who need quick access to cash can rely on easy logbook loans because they can be processed and even deposited in your account, all within the same day, thereby allowing you to deal with your financial crisis almost instantly.
High Loan Limits
Log book loans allow you to access larger amounts of money because the value of the car often plays a big role in determining the loan’s final amount. This also means that unlike other loan options, you will be able to better negotiate for more favourable repayment terms.
Straightforward and Transparent Loan Terms
The best logbook loans will usually come with very clear stipulations that any layman will be able to understand. However, it is always best that check the logbook loan direct lender’s website and ask for further clarification to avoid the risk of any hidden fees.
Most loan options will usually come with very short and strict repayment terms, but the advantage of log book loans is that loans direct lenders are usually open to agreeing to a flexible repayment schedule that you feel comfortable with.
Complete Freedom in Using the Funds
As long as your car is in good condition and you have full ownership of it, then the lender won’t need you to explain what you want to use the logbook money for, as you are free to do with it as you see fit. However, it is always best that you only take out a logbook loan online to deal with an urgent or unavoidable expense.
What Are the Eligibility Criteria for a Logbook Loan?
The benefit of log book loans is that even if you have a less than stellar credit history, you are still able to qualify for one. And since you are using your car as collateral, the level of risk to the lender is often less than other loan options, which means that most logbook loans direct lenders are less stringent with their eligibility requirements.
In this respect, the standard criteria you should at least be able to meet are:
- being over the age of 18
- being a UK resident with a permanent address
- being able to show proof of income (employed full-time or part-time)
- being the owner of a vehicle that is either fully (or nearly) paid for
- being able to supply relevant documents that prove ownership
If you happen to fulfil all of these requirements, then you can proceed with your log book loan application, as you are almost assuredly guaranteed logbook loans.
However, you should keep in mind that the logbook loan direct lender will usually take into consideration your vehicle’s condition when reviewing your application. Furthermore, some logbook loan direct lenders may consider your application if you are on benefits since it is essentially a form of regular income.
How Do Logbook Loans Work?
Taking out a logbook loan online can often be a quick and easy way to secure yourself a line of credit using your vehicle as collateral. And when you start the application process, you will first need to hand over your vehicle’s logbook or registration document to the lender, which shows proof that you are legally the car’s owner.
The logbook loan direct lender will then keep this document, and in doing so, they will temporarily claim ownership of your vehicle until the loan has been repaid in full. You will still be able to use your car as usual within this period of time, but they will effectively retain legal ownership.
And in most cases, the logbook loan direct lender will probably let you borrow between £500 and £50000, depending on the value of your car, but some logbook loan direct lenders will only let you borrow up to half of its current value.
Furthermore, your log book loan application may be accepted even if the car is still on finance, but keep in mind that the amount you receive may end up being adjusted accordingly. Ultimately, the key thing to keep in mind is that if you default on your loan against your car, then the lender has every right to repossess your vehicle, in order to recover their logbook money.
What to Consider Before Taking Out a Logbook Loan?
When taking out easy log book loans, always keep in mind that their APRs can often be very high, which is why it is often best to avoid dragging out the repayment period for too long. Moreover, if you make an early repayment of more than £8,000 within a 12-month period, then there is a chance that some logbook loan direct lenders may charge you early repayment fees.
Additionally, some lenders may request that you make weekly payments, so always make sure that you can afford to make those repayments first before accepting any quick logbook loans.
Also, you may still be able to get a logbook loan, even if your car has existing finance against it, but you can only apply for one, if the outstanding amount is low and you have permission from your existing lender to do so.
It is important to remember that some logbook loans direct lenders don’t accept Direct Debit, which can sometimes make it difficult to keep track of how much logbook money you owe. However, you can always ask for a statement of account, which you are entitled to be provided and it should indicate exactly how much debt still remains.
1. Can I get a logbook loan if I'm unemployed or on benefits?
This will usually depend on the lender because while most logbook loans direct lenders are usually unwilling to let you borrow a logbook loan if you are unemployed, there are some still willing to consider your application. And the reason for most of the decline is because securing logbook money requires being able to show that you can afford to make the monthly repayments.
Naturally, this requires having a steady income stream, which means being employed, either full-time or part-time. The good news is that there are logbook loans direct lenders that are willing to provide a logbook loan on benefits since it is essentially a form of regular income.
2. Do you provide logbook loans for vehicles older than ten years old?
Yes. Our logbook loans direct lenders are open to considering your application, even if your vehicle is five, seven, or even ten years old. However, when taking out a logbook loan, some lenders may be hesitant to accept older vehicles because the car’s value may be worth significantly less over time, especially if the loan’s repayment term will be set out over a few years.
On the other hand, if you have a classic/vintage car and want a loan on your car, you can rest assured that our lenders are considerate of these vehicles since they will usually hold their value over time. However, keep in mind that any guaranteed logbook loans often depend on your credit rating, as well as your level of income as well.
3. Are logbook loans available to people with bad credit?
Yes. If you have a bad credit history, you can still proceed with your application for a logbook loan because most lenders will usually take into account your car’s value and age before making a decision on your logbook money request.
And while it is common for logbook loans direct lenders to carry out credit checks on your history, you can rest assured that their main concern will be whether or not you can actually afford to make your monthly repayments on time.
This means that as long you can show proof of income and you have full ownership of your vehicle, then you can still proceed with applying for a loan against the car.
4. Why should I choose a logbook loan over a traditional loan?
Securing yourself a logbook loan is a great option for those who may have less than stellar credit scores and have been denied the chance to get a personal loan from a bank or credit provider. In such cases, if you have a vehicle of good value, you can get yourself an urgent cash advance by putting it up as collateral.
And while the interest rates on the best logbook loans are not cheap, they are still more affordable than payday loans or other bad credit loan alternatives. In fact, even well-off people like to take out quick logbook loans because it allows them to quickly secure a line of credit, as compared to traditional lenders who will often take some time to process their applications.
5. What happens if I fail to make my repayments?
If you are unable to make your repayments on time, lenders have the legal authority to use bailiffs to seize your vehicle. In most cases, they won’t even need to go to court to repossess your car and if the amount your car ends up being sold for is less than what you owe, then chances are you will still need to pay the shortfall.
And if you don’t make this payment, the logbook loan direct lender will be able to take you to court to get the rest of their money back. However, the good news is that this is only legally allowed if you have fallen behind on several repayments and they have sent you a default notice that gave you 14 days to clear any missed payments.
6. How can I be certain that the lender is correctly valuing my vehicle?
Since most logbook loan direct lenders will usually lend you about 50% of your vehicle’s current value, it is important that you make sure they are giving you a fair deal on your log book loans.
Any legitimate logbook loan lender will usually ask you to take your car to a local agent of your choice to assess the true market value of the car, so if the lender says that they will do it for you, make sure that you let them know that you would prefer to use your own appraiser.
This in turn will allow you to get the maximum amount of logbook money out of your car, whenever you are taking out a log book loan.