What is a log book loan?
A log book loan is a secured loan that requires collateral in the form of a vehicle. This means that you must own a vehicle to get this type of loan. The lender will temporarily take ownership of the vehicle until the loan has been paid off in full. If you are not able to pay back the loan, the lender will retain ownership of your vehicle log book loan uk.
You can get the cash you need fast
One of the primary reasons that logbook loans have become so incredibly popular is that they allow those who get approved to get the money they need within 24 hours. If you are in a tight financial situation and need money right away, this is a borrowing option that is worth looking into.
The repayment period varies
The period of time that you will have to pay back your log book loan will depend on the amount of money you borrow. You could have anywhere from three months to three years to pay back your loan. You will be required to submit monthly payments through automatic debit deduction of your current account. It is important to keep in mind that the longer the repayment period, the more interest you will pay.
The interest rate
The average APR or annual percentage rate for logbook loans is around 400%. Some lenders offer lower interest rates to keep up with the competition, but you can expect to pay at least 300% interest on your loan.
Logbook loan requirements
There are going to be certain minimum requirements that you will have to meet to get a log book loan, including:
- VS or logbook document
- MOT certificate
- Insurance details
- Proof of identification
- Proof of steady income
- Billing address
A log book loan can be an excellent borrowing option for those who need a significant amount of money quick. It is important that you take the time to learn everything you can about logbook loans before making a final decision though.
You CAN still get a logbook loan with bad credit
While it may seem like those with bad credit are destined to be rejected when applying for a log book loan, the truth is that it doesn’t matter what your credit is like. Some lenders will not even run a credit check, because the only thing that matters is the value of the vehicle you are going to put up as collateral.
How much you can borrow depends on the value of your car
The fact is that you can borrow thousands of dollars with a log book loan, so it is important to keep that in mind. The maximum amount that you’ll be able to borrow will depend on the overall value of your vehicle though.
It takes a while to get your money
Once you have been approved for a log book loan, you can expect to receive the funds within about 24 hours. This is a very short period of time. In fact, this is one of the best loans to get if you need money fast.
These days logbook loans have become a popular choice for people who are in desperate need of money fast, and it’s an option you should at least look into.