Advantages of a Logbook Loan

There’s no denying the fact that logbook loans are expensive. For this very reason, some financial experts have been discouraging borrowers from resorting to the financial product. Staying away from such types of loans, however, is easier said than done. When you have a poor credit score and most lenders refuse to approve your loan application, logbook loans ready do come handy. Here are some advantages of the financial product in case you find yourself considering the loan:

Fast approval

Even though logbook loans are secured loans, approval is often fast and hassle-free. In fact, most providers are promising same-day approval for eligible borrowers. Granted that your requirements are ready and you’re vehicle is free of any financing, you can complete the application today and get approved within the same day.

Minimal requirements

The requirements are also minimal when you apply for a logbook loan. In general, you’ll just need to meet a number of major requirements. You must be of legal age who reside in the UK with a steady income and has a vehicle to offer for collateral. If you meet the aforementioned criteria, you’re free to apply for a logbook loan online and even enjoy a free quote service.

No credit check

Of all the advantages the loan has to offer, the no credit check requirement is probably the financial product’s best lure to borrowers. Providers of this type of loan do not require customers to have good credit. So long as you’re a car owner, you can avail the loan no matter your credit history. Even if you have a history of default or CCJ, you can still avail the loan.

Generous loan offers

With the security requirement, borrowers are able to borrow larger loan amounts with a logbook loan. In general, lenders offer amounts from as small as £500 to as much as £50,000. The maximum amount you can avail will depend on your vehicle’s trade value. Some lenders may allow you to borrow as much as 50% or 70% of the collateral’s official trade value.

Flexible loan terms

Repayment terms for logbook loans can be incredibly flexible too. Depending on your lender, you can arrange your payments once a month or twice a month. Some lenders may even allow you to pay on a weekly basis if that’s financially more comfortable for your situation. In general, repayment terms for logbook loans start from a year to 3 years.

Bottom Line

While logbook loans are expensive, you cannot discredit the fact that logbook loans also come with a number of advantages most borrowers find beneficial. Logbook loans, in particular, are ideal for borrowers with bad credit issues. If other lenders refuse to offer you a personal loan because of your credit score, it makes sense to resort to logbook loans, which do not require any credit check. Just make sure you weigh both the advantages and disadvantages well before you go ahead with the loan application. So long as the pros outweigh the cons, you’re on the right track.