A couple of years ago, getting a loan with poor credit was a mirage, a tall order. It was akin to trying to search for a needle in a hay stack. No high street bank or lender would approve your loan application without checking out your credit score. Individuals with a poor credit rating were left to lick their own wounds and hope for the best whenever they applied for loans. Fast forward to today and there are a couple of loan products designed for people with a less than stellar credit rating. Such credit facilities as payday loans and bad credit loans have indeed given UK citizens with low credit score an opportunity to avail a loan even if their credit rating is nothing to write home about.
Do you have bad credit and have been unable to avail a personal loan? Have all high street lenders given you a negative answer as regards your loan application? If that’s the case, you should consider applying for a logbook loan. This is a loan product specifically designed for individuals whose credit rating is less than average. It is for UK citizens who cannot avail a loan from high street banks and other financial institutions. Wondering how you can avail a logbook loan? Worry not as the requirements are quite basic and simple.
For starters, you need to own a car registered in your own name, be a citizen of the larger UK and be above the age of 18 years. Once you meet this simple eligibility requirements, you can do due diligence and settle on a logbook lender of your choice within your locality. In addition to the aforementioned requirements, you also need to provide proof of income, furnish your lender with the insurance details of your car, Ministry of Transport (MOT) certificate and proof of address.
Applying for a logbook loan is as convenient as logging online and providing your car registration details to your lenders. If all documents are correct, you can have your logbook loan application approved within hours. However, most lenders write you a check which might take a couple of days before maturing which might prove problematic especially if you want the cash urgently. The good thing is that there are a number of UK logbook lenders that offer instant cash at a fee and therefore you should compare them and settle for one that you feel is most affordable.
If there is anything that has made logbook loans popular, it has to be the fact that the approval of these loans is not hinged on a person’s credit rating. You can get as much money as you want to 50 or 70% value of your car and can repay the loan over a period of 78 weeks. However, that notwithstanding, logbook loans also have a number of risks.
The most outstanding one is of course the risk of your car being repossessed should you be unable to service your loan. Secondly, logbook loans attract high interest rates considering that no credit checks are done. It is the reason why it’s highly advisable that you visit a simple logbook loan website and compare rates before making an application for one. All the same, logbook loans are a great way to get urgent cash without having to worry about credit rating and such. You simply need to ensure that you choose the right lender and you are good to go.