Despite the fact that you may have no credit history, or have been turned down for credit by a lender, your vehicle can help secure loan for you. This form of credit, called a Logbook loan, sees your vehicle used as a form of security, although you still get to use it on a daily basis.
Logbook loans are the perfect way to get credit, easily and quickly, especially in times when you need it most, like a medical emergency for instance.
How does a Logbook loan work?
It is simple really. With a logbook loan, you receive a credit amount based on the value of your vehicle, as well as its mileage and overall condition. The vehicle could be a car, motorcycle or even a truck. The loan is fixed for a period of time in which you need to make repayments timeously. Because a vehicle’s value depreciates each month, the loan terms themselves can never be extended. The credit received from the Logbook loan varies depending on your vehicle and your monthly income.
Although the vehicle acts as security should you stop paying, you still get to use it on a daily basis while the lender keeps possession of vehicle logbook. Best of all, there are no credit checks when applying for a logbook loan, therefore even if you have a bad credit history, it will not affect your application in any way.
Once you have paid off your loan, the vehicle logbook is returned to the owner.
What are the requirements for a Logbook loan?
Although a Logbook loan is very simple to apply for, there still are some requirements as well as documents the lender will need from the person applying for the loan.
- Proof of income – typically in the form of three months’ worth of payslips
- Proof of address
- Proof of insurance on the vehicle
- Proof of age – typically in the form of an identification document
- The vehicle logbook
- The MOT certificate of the vehicle
Note, all vehicles must be comprehensively insured to secure a Logbook loan.
Are there any risks in taking a Logbook loan?
Logbook loans are one of the quickest ways to secure a loan fast! The only risk is if you do not pay your monthly payment timeously, as with any credit agreement.
What if the vehicle is damaged in an accident?
That is the reason a Logbook loan lender will request that you have full and comprehensive insurance on your vehicle. Any damage to the vehicle remains the responsibility of the loanee and should be fixed as quickly as possible. The insurance coverage should also include weather damage (such as hail) and even theft.
For more information on logbook loans visit SimpleLogbookLoan.