Logbook Loan: Smart Way to Capture Some Quick Cash
Use a vehicle with proof of ownership for collateral to borrow cash and it’s a logbook loan – no credit check, likely – with the Financial Conduct Authority (FCA) regulating the lender’s behavioural policies. Shop around as there are several organisations willing to lend.
A legal contract established between lender and vehicle owner is a bill of sale; responsible for the vehicle upkeep, taxes and insurance belongs solely to the vehicle owner, allowed to use the vehicle during the loan period and signs a consumer credit policy.
A logbook loan is a great way to capture some quick cash, even if recently denied a loan. If a person already has a logbook loan, there is a good possibility of moving it to another establishment at a lower interest rate, do the research.
Most establishments that offer a logbook loan will conduct a phone interview help with the paperwork and deliver the cash on the same day, after examining the vehicle for collateral, of course, which should be free of existing payments. The amount of the logbook loan received will depend on the worth of the vehicle and the ability to pay back the loan in payments.
Pay a logbook loan back as soon as possible; the annual percentage rate (APR) is rather high. Be careful about how much you pay back in a twelve month period because you might be fined for paying back too much.
There are lenders who do not take Direct Debit and may ask for weekly payment; therefore it may be difficult to know how much is owed. The solution to this dilemma is to ask for a Statement of Account; the lender must provide this document.
If a small amount is still owed on the vehicle, get an “okay” from your lender before proceeding. A logbook loan is available from establishment’s downtown and on the Internet. Of course, it will depend on how much your vehicle is worth, but generally, a logbook loan can be from 500 pounds to 50,000 pounds; in some cases, only half the worth of your vehicle. A vehicle can be a car, plane, motorcycle, boat or the like.
An imperfect credit rating could be a reason to apply for a logbook loan; this could prevent applying for lower interest rates from another lender. It might be that a logbook loan becomes the solution to an extreme emergency – the pros and cons determine this financial strategy.
People self-employed and/or on benefits can likely take advantage of a logbook loan. A good website to compare logbook loans logbooklender.co.uk/
If at any time circumstances change that create a payback hardship, it’s always best to contact the lender as soon as things get tough; this way adjustment to the logbook loans contract can be applied to comfort a struggling budget. However, the winds may be blowing in favour and an early settlement can be reached; many organisations do not charge extra for early settlement.