Logbook loans gain in popularity

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Logbook loans gain in popularity

21st December 2009

Did you know that you can use your car log book to obtain a loan, and will still be able to use your car?

Logbook loans are very popular at the moment as they offer another credit option for people who have become victims of the economic recession, and been left with a poor credit rating, CCJ's or bankruptcy. With a logbook loan you don't need a credit check, and can quickly receive the loan by applying online. You can borrow amounts of up to 50,000 from some companies with a logbook loan, but this depends on the value, age and condition of your car, and how much equity you have in the vehicle. If you still owe some money through a previous car loan, it is still possible to obtain a logbook loan on the same vehicle, provided you don't owe too much and the value of the car is still well in excess of the outstanding loan.

There are a number of conditions attached to logbook loans, as follows:

  • You must be the owner of the vehicle
  • You must maintain current insurance and road tax
  • The logbook must be in your name if you are the borrower
  • You must receive a regular income
  • There must be no unsettled claims against the vehicle
  • You will be expected to keep the vehicle in a good condition

For people with a poor credit history there are certain advantages to obtaining this type of loan as you do not need to have a credit check, and can apply even if you have a poor credit history. Unlike payday loans, the loan doesn't have to be repaid on your next payday; instead you can spread the payments in a similar way to other secured or unsecured loans. The sums that you can borrow are also usually higher than those for payday loans.

Obtaining a logbook loan is quick and easy as you will receive a response to your application within 24 hours when you apply online. An important factor is that you will still be able to drive your car, as the loan provider will need the car log book rather than the vehicle itself. You can also use these loans for any purpose such as holidays or home improvements.

Although interest rates are high on logbook loans, you can take advantage of an early settlement arrangement if your circumstances improve. This will cut down substantially on interest repayments.

Posted in Personal loans

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