Logbook loan being a form of secured lending operates on collateral. When you make a request for a loan and are approved, you will be required to exchange the ownership of your car with the lender .i.e. the provider becomes the legal owner of your car for the loan period until you pay and clear it up. Logbook lending is becoming the favourite source of quick cash for many. This can be attributed to the fact that credit history is a non issue with logbook lenders. It does not matter how bad your credit record is; your chances of approval for a loan are always high. What matters most is your affordability, that is, your ability to comfortably pay back the loan for the entire term.
- Most logbook loans are flexible and can always be adjusted to fit your circumstances. For instance, if you are struggling to pay your monthly instalments, you can always speak to your lender and they will help you out.
- A log book loan is very convenient as it involves a very short process of approval and disbursement of funds. Within 24 hours of sending in your application, you will be having your money in your account. Additionally, even though you use your vehicle as security, you will still keep and drive it as usual. The only thing you leave behind is your V5 document.
- These loans are very reliable making them a great choice for emergency situations. At no given time will your application be declined unless you do not have the proper documentation that the lender wants. Your credit score does not matter, all that matters is that you be a legal owner of the car you want to use as security.
- A logbook loan is pretty expensive as it involves very high APR rates. Additionally, anytime you delay or default a payment, it means more fees. That is why only a very worthwhile excuse should make you overlook the high cost of this loan.
- You risk losing your vehicle. As a result of the transfer of ownership which is legal and documented, the lender has all the right to come and claim your vehicle if you cannot keep up with payments anymore. After all, it’s what you placed as security. So before you sign up for a logbook loan ensure you can comfortably pay it back fully to avoid losing your car.
When you are faced with an urgent situation that requires quick cash, turning to a logbook loan is a smart move to make. This is because it does not involve a long procedure of approval. In fact, you will receive money within 24 to 48 hours at most. Additionally, you will bypass a credit check if you choose to borrow a logbook loan. Since it is as secure loan, lenders overlook that part knowing that they have something to fall back on if you default your loan. Remember you use your car as collateral and it does not matter whether the car is old or new. You can also get approved for a logbook loan even if your car is more than 10 years. Do not pass up the opportunity to get a loan because you think of your car as old. If you want to access a loan yet your car looks old, here are some of the top tips that can help you improve your chances of approval.
When using your old car as collateral, it is important that you ensure it is in good condition. It should be working well and looking awesome. You will not stand a chance if you use a car that is dirty, stained and full of scratches. Additionally, a service history and maintenance records would be very beneficial for you as they show that you have taken good care of the vehicle.
The car model
Since your car determines the value of money that you will get, we also look at model of your old car. Actually, some models appreciate in value as they grow older and perhaps that old car is your key to financial bliss. Whether it’s a vintage/classic or sports car, you will still enjoy some good money.
Older cars tend to have a higher mileage unlike new cars. Truth is, the lower your mileage the higher the chances of winning`a logbook loan. Higher mileage simply proves that your vehicle has deteriorated more and lenders would want you to prove that you’ve taken care of your vehicle. This, sometimes, is difficult to prove. But that’s where maintenance records come in. Ensure that you keep all records including receipts from the garage you visit. By doing this you will erase every doubt the lender might have thus accepting your application.
It is not how old or new your car is that ultimately determines whether you will be approved or not. What matters most is your affordability and reliability.. A responsible lender will ensure you can comfortably pay back the loan before signing you up. So ensure the loan is suitable for your circumstances.