Benefits Of Getting A Logbook Loan
Logbook loans have become very popular in recent years. Indeed, these innovative loan options are now a leading option for people with financial concerns as they enable individuals who have had difficulty getting quick credit from normal lenders to receive significant amounts of money in very short spaces of time.
Although it is certainly not true of all applicants, a relatively high proportion of people who decide to take out logbook-type loans have bad credit. Indeed, it is often the case that many applicants are people who have tried to repay an existing loan or debt yet have failed to do so and thereby have ended up with credit card payment defaults, mortgage arrears, County Court Judgements (CCJs) and even bankruptcy as a result.
The fact is, logbook-type loans – which are available to virtually any car-owning adult in the UK – have a number of unique benefits. Below are some of the most significant:
No Credit Checks
The fact that there are no credit checks during the application process makes logbook-type loans the ideal choice for people with poor credit history. This makes them fundamentally different to traditional financial organisations and typical lenders (like banks) that maintain policies which are dependent on making credit checks.
Easy Application
It is incredibly easy to apply for a logbook loan these days, especially now so many lenders have websites on the World Wide Web. Once an individual has made an application to a lender they simply need to gain approval from an accredited adviser (who will more than likely be in touch the same day). After they have been approved, the borrower will be offered a sum of money in exchange for their car’s V5 logbook. This sum will be based on how much the lender determines an applicant’s car is worth and can amount to anything from £500 to £50,000. Even after the logbook is handed over, borrowers can still retain their vehicle and drive it around as normal.
Better Than Payday Loans
Payday loans are another form of flexible loan solution which has become popular in recent years. Whilst these may appear similar to logbook-type loans, there are some major differences, the main one being that they are unsecured; therefore the amount an applicant can borrow is a lot less. Indeed, most payday advances are considered to be high risk loans as lenders have nothing to secure them against. Because of this, payday advances generally levy a higher APR on borrowers.
Loans for All Purposes
Log book advances can be used by borrowers for all manner of purposes as logbook lenders do not stipulate how their loans can or cannot be used. Indeed, it doesn’t matter if an individual needs a cash injection to repay debts, complete a home improvement project or treat their family to a long overdue holiday; applicants can spend the money as they see fit as long as they make regular repayments and maintain their vehicle as they normally would.
Category: Loans
