Now if you are searching for various secured loan options, one of the simplest loans to apply for is the logbook loan. This loan is secured against the value of a vehicle that you own. This can be a motor car, a motorbike, a truck, van or even a caravan. As long as it is in good condition, it has value and therefore can act as collateral when you take out a logbook loan. The best thing is that not only do you secure a loan, but you can still use your vehicle on a daily basis.
How does this loan option work?
Well, no doubt that your fully paid off motor vehicle is indeed an asset to you. But how do you use it to borrow money with a logbook loan? Well, it is simple really. We have done all the homework for you so if you intend to go with this loan option, you will know exactly how it works.
There are a few important factors to consider first hand, however.
Firstly, your vehicle must be fully paid off. There can be no outstanding finance on it at all. Secondly, you must be the legal owner of the vehicle. It cannot belong to your spouse, sibling, friend or colleague. If it does, they must apply for the logbook loan themselves.
Thirdly, the vehicle cannot be older than 10 years. Many logbook loan providers however, will make exceptions with certain sports cars or older classic models.
Lastly, you must have full and comprehensive insurance for the vehicle. This protects the credit provider in case the vehicle is stolen, in an accident or even damaged by extreme weather.
Although these are the most important considerations, your vehicle needs to be in good condition and have a relatively low mileage as well. In other words, it has to have some value to it that can act as security for your loan. Bear in mind, if you default on your logbook loan repayments, the credit provider is lawfully allowed to repossess your vehicle and sell it to recoup any costs incurred.
How does one apply for a logbook loan?
The application process for a logbook loan is relatively simple. The first step is to have your vehicle assessed to see how much it is worth. This, together with your monthly income, helps to determine the amount that you will receive as a loan pay-out.
The second step requires you to furnish the logbook loan provider with a number of documents. These include proof of address, bank statements for the past three months on your main account, wage slips from your employer for the past three months, documents that prove you have comprehensive insurance on the vehicle as well as your identity document.
Generally, you can email these to the loan provider and they will do your application online. The approval can take as quick as a few hours and the money can be paid into your bank account within a day in most cases.
Remember, that you will surrender your vehicle logbook to the loan provider for the duration of the loan as they are the legal owners of the vehicle until you have paid your last loan instalment.
The advantages of a logbook loan
Logbook loans are certainly becoming one of the most popular secured loan options for individuals throughout the United Kingdom. There are a number of reasons for this. Let’s take a closer look.
- Ease of application
There is no denying that logbook loans are perhaps the easiest of the secured loan options to apply for. Most companies allow you to apply online, even to the point of giving you a ballpark figure for what they think your car is worth. All the necessary documents that they require can then easily be emailed to them without you even having to visit their offices.
- A negative credit score won’t hold you back
Many people throughout the United Kingdom are suffering from negative credit ratings. This then precludes them from a number of different credit options including personal loans, credit cards and even mobile phone contracts. When taking out a logbook loan, although your credit score will be checked – it has to be by law – it won’t stop you from being eligible for a loan. All the loan company is interested in is the vehicle you offer as well as a monthly repayment that will not put you under financial pressure.
- Quick and easy
Once the loan company has all the documents that they require to process your loan, and have looked at and assessed your vehicle, it’s a matter of a few hours before you know if you have been approved for the loan or not (95% of all logbook loans are approved).
Once approval has been given and you sign the contract, it takes about 24 hours before the money is paid into your account (in most cases). It can take longer on some occasions depending on the financial institution you bank with and them clearing the funds quick enough.
If you require any further information about logbook loans, be sure to visit Simplelogbookloan.co.uk