What Reasons Do People Get Logbook Loans For?
Logbook loans provide a way for people who have had a history of bad credit to get a loan. With the state of the economy and the reluctance of banks to lend money to people, families in this situation have found it difficult to obtain credit. Many high street banks are reluctant to lend to people due to new rules.
With this in mind, it’s worth looking at the reasons that people acquire logbook loans.
The most popular reason for people to get logbook loans is down to the fact that they are unable to get credit elsewhere. This is probably down to the fact that a regular bank has denied them credit. Why? In many cases this is because they have CCJs against them, bad debts or bankruptcy which has thus resulted in a poor credit rating.
The criteria to meet for logbook loans are simple and straightforward. You must own the vehicle for a start in order to secure a loan against it. The vehicle needs to be legally registered to you and the logbook should show this. You also need to be aged 18 and over and a UK resident.
These loans are any purpose and therefore can be used for whatever you like from paying off debts to home improvements. This flexibility makes them a great choice for people who need money quickly for something without any restrictions.
The lender will need to know that you can pay the loan back, so you will need to prove that you are earning regular income. You should think carefully before taking out a loan as you could potentially lose your vehicle if you do not pay everything back. Of course, this is a last resort for any lender and they will always endeavour to put together a repayment plan if possible.
Remember, that a logbook loan can offer you a substantial amount of money - sometimes up to £20,000. In most cases a lender will offer you up to 75% of the value of your vehicle
With this in mind, it’s worth looking at the reasons that people acquire logbook loans.
The most popular reason for people to get logbook loans is down to the fact that they are unable to get credit elsewhere. This is probably down to the fact that a regular bank has denied them credit. Why? In many cases this is because they have CCJs against them, bad debts or bankruptcy which has thus resulted in a poor credit rating.
The criteria to meet for logbook loans are simple and straightforward. You must own the vehicle for a start in order to secure a loan against it. The vehicle needs to be legally registered to you and the logbook should show this. You also need to be aged 18 and over and a UK resident.
These loans are any purpose and therefore can be used for whatever you like from paying off debts to home improvements. This flexibility makes them a great choice for people who need money quickly for something without any restrictions.
The lender will need to know that you can pay the loan back, so you will need to prove that you are earning regular income. You should think carefully before taking out a loan as you could potentially lose your vehicle if you do not pay everything back. Of course, this is a last resort for any lender and they will always endeavour to put together a repayment plan if possible.
Remember, that a logbook loan can offer you a substantial amount of money - sometimes up to £20,000. In most cases a lender will offer you up to 75% of the value of your vehicle