Inability to be approved for a loan because of a poor credit rating is something that most people cringe at the thought of. In a perfect world, the idea of a poor credit rating would be non-existent. Unfortunately, we live in an imperfect world where a lot of things are influence by the world we live. Some of us for one reason or the other find themselves with a poor credit rating ranging from improper financial behaviour to circumstances beyond our control such as job loss. However, emergencies strike all of us at the most inopportune of circumstances. When that happens, a loan can go a long way in helping us go through the problem.
Unfortunately, high street banks and major financial lenders insist on having a good credit score before a person can be considered for a loan. So what happens to individuals with bad credit and whose credit scores are nothing to write about? Who do they turn to in their moment of need? While there are a number of bad credit loans out there, we both agree that logbook loans indeed outdo most of them. A logbook loan is basically a bad credit loan whereby a person uses their car as collateral to get access to the amount of money they need. So what makes logbook loans -justlogbookloan popular?
Borrow a large amount of money
In essence, unlike other types of bad credit loans where the maximum amount of money a person can borrow is limited, logbook loans are a bit different. In other words, the maximum amount a person can borrow their credit rating notwithstanding is hinged on the value of their car. What this simply means is that a person is free to borrow the amount of money they need provided the value of their car covers it. It should however be noted that most logbook loan lenders only advance up to 50% of the current value of a person’s car.
Simple application process
Compared to traditional loans, the application process for logbook loans is quite simple and even cash can be advanced within the same day. A person only needs to be of age (18 years and above), a UK citizen, of sound money and show proof that they receive salary on a regular basis.
Longer repayment period
Unlike same day loans where a person has 30 days to repay a loan, logbook loans can be repaid over a period of 36 months which in essence gives the borrower flexibility. Based on ability, a person can make weekly, bi-weekly and even monthly repayments.
You don’t lose possession of your car while repaying the loan
This is where logbook loans are quite popular. An income generating car can be used as collateral and the owner continue using it to generate income while repaying the loan. The only time a person will lose possession of the car is if they are unable to repay and the lender repossesses it.
In light of the above, it goes without say that a logbook loan is a great alternative for a person struggling with bad credit. However, just like any other type of loan product, it is advisable to carry out due diligence prior to applying!