Emergency Cash On Demand: 8 Reasons To Consider Logbook Loans

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Have you ever found yourself in a situation where you need cash urgently but need more savings, credit cards, or access to other forms of lending? If so, consider logbook loans as a possible solution.  

Logbook loans are popular secured loans (gross lending of £29.15 billion) that allow you to borrow money using your vehicle as collateral. You can keep using your vehicle if you make the agreed repayments. Logbook loans benefit people who need emergency cash on demand, and here are eight reasons why. 

8 Reasons To Consider Logbook Loans 

1. Instant Access to Cash 

Logbook loans provide an immediate source of money. However, these loans differ from other loans as they do not consider lengthy applications, credit checking, or waiting for long. All you require is filling in an easy-to-complete web form that asks only a few basics about your car and you. 

However, suppose you agree on the amount of your logbook loans and terms. In that case, a provider’s representative will visit you for a car inspection and verification of documents before handing you money. The process may take around one hour, depending on your location and whether it is convenient for you or not. 

2. No Credit Check 

An additional advantage of logbook loans is that they do not necessitate a credit check. It is because, unlike other loans that might regard you as having poor or no credit history, CCJs record default, such as logbook loans, which don’t matter to your creditworthiness. 

However, logbook loan providers decide independently, not as your credit score but as a car that should be in good functioning conditions with relatively high market value. As a result, these loans are affordable and accessible compared to other types of loaning. 

3. Use Your Vehicle as Collateral 

Logbook loans involve using your car as a form of collateral. It means that even if you cannot repay the money borrowed, you will not lose anything apart from your automobile. The provider of such a loan will only repossess your vehicle as a security in case of default. 

Nevertheless, this does not imply that you continue remittance or disregard those aspects of the loan accord. However, remember that you must always know what it takes to make up for missed or late payments. In case you find difficulty in paying back the money, contact the lender immediately and attempt to reach an agreement regarding the loan. 

4. Flexible Repayment Options 

The repayment periods for logbook loans are convenient to your budget preference. You are free to pay back based on your income and expenditure on a weekly or fortnightly basis. For instance, you may select a loan period between one and two years.  

You are allowed to make early or advanced payments by some logbook loan providers but without charge. Such moves can help you save money and repay your debt earlier than expected. 

5. Accessible to Individuals with Poor Credit 

These loans depend on your car's worth and state; hence, they do not consider your credit score. To qualify for a logbook loan, you should have a privately owned car not under finance, registered in your name, and in good condition with all necessary inspections. 

6. No Employment Verification 

A logbook loan does not require any employment verifications; hence, one can still take a loan and yet be self-employed, unemployed, or on benefits. Nevertheless, logbook loan providers merely require proof of identity and address. 

You will also require a stream of steady income, such as payments from employment or pensions and benefits. The UK’s Q2 unemployment rate in 2023 was 4.3%.  

7. Minimal Documentation Required 

Acquiring a logbook loan is relatively easy since a person must submit only a few documents in the application process. You only need to provide the following documents: 

• A logbook document or a V5 showing that the vehicle belongs to you. 

• A valid identity or age confirmation, such as a driving permit. 

• A utility company’s bill or a bank statement proving your permanent address. 

8. Competitive Interest Rates 

Compared to other secured lending instruments like pawnbroking, doorstep lending, and payday loans, logbook loan interest rates are very competitive.  

These loans are affordable because they do not require one to pay late charges or even early repayment charges, unlike the others. Moreover, these loans can save you interest and unexpected fees. 

Last Take 

Obtaining urgent funds on demand is easy through logbook loans, particularly for those individuals who have bad credit records, no credit, or restricted access to other lenders.  

Unfortunately, there are a lot of hidden costs that go with them, such as interests, fees, and charges. It is, therefore, important to always make a good choice of the logbook loan provider that you will deal with.