Beginner’s Guide to Logbook Loans

Affordable personal loans are hard to come by in the UK if you have a poor credit score. Most lenders will likely refuse you a loan because of your bad credit. In this case, resorting to costly loans such as logbook loans may be the best answer to your financial situation. If you’re new to logbook loans and you’re planning to avail the financial product, then this beginner’s guide is for you.

Overview

Logbook loans are very popular in the UK for a number of reasons. Not only does the financial product offer quick cash solution to a variety of financial needs but the loan product also does not require any credit check. In short, logbook loans exist to specifically cater to borrowers with bad credit problems.

If you have a poor credit score, you’re welcome to avail loans from £500 to £50,000. Some lenders may only offer as much as £25,000. In any case, logbook loans are better than unsecured loans because of the generous offers. Logbook loans also offer longer repayment terms starting from a few months up to 36 months.

Requirements

With no credit check needed, the requirements when applying for a logbook loan couldn’t be any simpler. Borrowers are only required to own a vehicle, which will serve as collateral for the loan. Naturally, you’ll have to be of legal age with proof of steady income to get approved for a loan deal.

Cost

Logbook loans can be costly considering that it caters to borrowers with bad credit. To avail a loan that is not as expensive, make sure to look for a deal with the lowest APR. The average APR for logbook loans is 400%. You can shop around or use comparison sites to find a deal with cheaper interest rates. Just remember that APR is just one aspect of the loan’s cost. You’ll also have to make sure your lender has a strong and solid track record of helping borrowers to guarantee the best deal.

Application Process

Applying for a logbook loan couldn’t be simpler. All you need to do is go online, find a reliable provider and fill out the application form. If you want a free quote before proceeding to the loan, you can do so by providing your vehicle’s registration number. If you’re comfortable with the quote, you can proceed with the application online and get approved in a matter of hours or within a day.