If you have never been in need of an emergency loan, you might not fully appreciate the phenomenal role that logbook loans play in the contemporary society. Poor credit rating is a problem that afflicts many UK citizens and which has been a thorn in the flesh in so far as getting approved for a phone contract or loan is concerned. In the now, getting access to a loan or even a simple phone contract is pegged on how good a person’s credit score is. The result has been that those who with a less than average credit score are often stressed and feel like second class citizens when availing a loan or a phone contract.
Before bad credit logbook loans uk became a reality, it was common for mainstream lenders and mobile phone providers to avoid those with bad credit like a plague. Thanks to the unveiling of logbook loans, those with a less than stellar credit score can now apply and get approved for a loan without any challenges. Essentially, logbook loans are secured loans in which a person’s car is used as collateral for the loan. The rules of engagement are quite simple and clear when it comes to logbook loans.
A person needs to be an adult of 18 years or beyond, to be of sound mind, to be in employment, to reside in the UK and to be a citizen of the UK. What this simply means is that a person cannot be considered for a logbook loan if:
- The car they set up as collateral is not registered in their own name
- They do not reside within the UK
- They are not in any form of employment and therefore do not receive income
- They are below the age of 18 years
- They do not provide proof of address
- They do not provide ministry of transport certificate
- The car has financial attachments
With the advent of the internet, applying and subsequent processing of a logbook loan is done in record time. What this essentially means is that a person can apply for a logbook loan online from the comfort of their offices or even humble abode and get access to their money within 24 hours. The application process is pretty simple and straightforward however emphasis is placed on a person finding a UK logbook loan lender that is reputable, credible and reliable.
Are there any risks associated with bad credit logbook loans?
As is with everything, there are two sides to a coin. The number one risk of logbook loans has to do with the fact that there is a high probability of losing possession of your car especially if you are unable to furnish your loan. A logbook loan lender can dispose off your car in order to recover the money they advanced to you. Secondly, because no credit checks are done, logbook loans tend to attract high interest rates hence making them more expensive as compared to ordinary loans. It is therefore important that you take this into consideration before applying for a logbook loan.