If you are thinking about getting a loan on a short term basis, you could be considering a number of options including payday and logbook loans.
Many short term loan providers have experienced growth in recent years and logbook loans are no different.
These loans have seen an increase in the number of people using them over the past couple of years and this trend looks set to continue as more and more people face various financial hurdles. There is also the added pressure of bank lending criteria — which has become much tougher in recent times, meaning those who were previously able to obtain a loan from the bank may struggle to do so now.
The reasons, behind someone, wants a loan, such as this is vast, from someone, needs a loan for an unplanned bill for an individual who is simply short of money this month.
Unlike standard secured or unsecured loans, logbook loans work differently — they are aimed at individuals who require credit on a short-term basis through a hassle-free and straightforward process.
These loans are dependent on the value of your vehicle — not your previous history of borrowing. If you struggled in the past to re-pay debts on time or have had similar financial troubles which have impacted your credit score, then these factors will not affect your ability to apply for and receive a logbook loan. This is due to the fact that logbook loan firms do not conduct a credit rating check on you during the application process. This could come as a great relief to those who have a bad credit rating as it will not stop them from obtaining a loan.
The process of applying for logbook loans is very easy and straightforward. Nine times out of ten, the initial application will be made on-line by completing a very short form which will request some information about the vehicle age, mileage and type. Following this, the logbook loan lender will make contact with you via phone so that you are able to confirm your needs and also ask any questions which may come to mind about the way in which logbook loans work.
Once these steps have been completed, the lender may wish to have a face-to-face meeting with you in order to value your vehicle and provide a loan to you. Many lenders can provide a cheque to you, meaning a bank account is not always necessary.
You may be wondering how much you can borrow with a logbook loan. The exact loan value is dependent on your vehicle. Usually, the lender will be able to justify a loan of a higher amount for a vehicle which is worth more due to the fact that the loan is essentially secured on the vehicle. Many lenders will not be able to provide logbook loans to very old cars as the value will simply be too low.
These loans are also highly flexible in terms of usage, which means the lender will not tell you what you can and can’t use the loan for which is another reason for the recent growth in popularity.
Bear in mind that whilst the criteria for logbook loans is fairly relaxed the lender will need to confirm that the vehicle is legally yours, not under any financial arrangements and that you are over 18. Many lenders will also want confirmation that you actually have the ability to repay the loan and you should consider this prior to applying.
In many cases, logbook loans can be obtained quickly — within one day, which is fantastic news for those people who need credit fast without the lengthy paperwork and processes used by regular banks.