In today’s world, there are many, many different types of loans, ranging from those you would consider normal, through to payday loans and logbook loans. Logbook loans are what we are going to look at now…..
What is a logbook loan?
A logbook loan is a loan secured against your logbook in the United Kingdom that involves the transfer of ownership of your car, van, or motorcycle to the logbook lender as security for a loan.
What are the benefits to me of taking out a logbook loan?
Well, one of the biggest benefits of taking out a logbook loan in today’s ‘need now’ world is that you will receive cash instantly. To obtain a logbook loan takes a minimal amount of time and consists of a loan application being completed, which is then signed and approved, leaving you with a maximum of 60 minutes to wait for the money you are borrowing to be transferred into your bank account. This means you can get on with your life much quicker, and it also means that if you are in an emergency situation where you require cash then you will be sorted.
Another benefit is that you will still be able to use your vehicle in the same way that you would have done previous to taking out the logbook loan. This means any daily routines, and trips you take for work and leisure are not disrupted and prevented.
A third (and final for this blog) benefit of taking out a logbook loan is that it will have much more favourable eligibility criteria attached to it in comparison to a standard bank loan. In today’s world, it is common for people to have one or two blemishes on their credit history, and where a bank may reject someone for a loan based on these, a logbook loan lender in most cases would not and will take the time to discuss your past issues and base their decision on whether it is right for you in your current personal situation.
Is the car still mine once I have signed for a logbook loan?
In short, the answer to this question is yes. You will have full access to your vehicle, as you did previously.
Of course, taking out a loan should be carefully thought through, and you should be in a position where you can make regular, scheduled repayments on it. If you default on repayments, and do not contact your lender to make a satisfactory repayment, your vehicle will be repossessed. This will only occur after all the relevant legal notices have been sent, as per the Consumer Credit Act 1974.
For more information on logbook loans, and to decide whether one of them is a suitable option for you in your current circumstances, please take a look online where you will find a whole host of information and advice.