There are a lot of questions that people tend to ask about logbook loans, and it is important that you get answers to them before deciding whether or not to apply for one.
What is a log book loan?
A logbook loans uk is simply a secured loan that requires a car to be put down as collateral in the event that the borrower cannot pay it back on time and in full.
Will my credit be an issue?
Your credit will not be relevant whatsoever when it comes to getting a log book loan. These lenders do not typically run credit checks for the simple reason that a car is being used to secure the loan.
How much can I borrow?
The maximum amount of money that you can borrow with a log book loan will depend on the value of your vehicle as well as your income. The more valuable your car is and the more money you make, the higher this amount is going to be.
Is it hard to get approved for a log book loan?
Logbook loans are not very difficult to get approved for at all, simply because credit is not an issue and the bare minimum requirements are quite lax. Most people who apply for these loans are approved, so your chances should be pretty good.
What happens if I don’t pay the loan back?
If you fail to pay back your loan on time, the lender will retain ownership of your vehicle. Some lenders are willing to give borrowers an extension on their loan, but it usually comes with penalty/late fees.
How much interest will I pay?
The interest rate on your log book loan will mostly depend on the lender you choose, which is all the more reason to research different ones. This research will help you to get the best deal on your loan.
Who can benefit from a log book loan?
There are a lot of different people who can potentially benefit from a log book loan, such as those who are currently having cash flow problems or need to pay for a sudden and important expense.