What measures do I need to put in place to ensure I get approved for a logbook loan?
Compared to other bad credit loans, logbook loans are fairly easy to apply and get approved. To ensure you get approved, you must be a United Kingdom citizen who is an adult of sound mind, owns a car and can provide proof that you receive some form of income either from employment or from self-employment. This is simply to ensure that you can comfortably service your loan.
How do credit checks affect my chances of approval?
The beauty about logbook loans is that the state of your credit rating does not in any way influence the decision to approve or reject your application. This is a bad credit loan ostensibly meant for individuals with a poor credit rating. As such, you can be assured of approval the results of the credit checks notwithstanding.
Does my history of arrears reduce chances of approval for a logbook loan?
Simply put, no. It doesn’t matter whether you filed for bankruptcy in the past or if you have a history of arrears. So long as you have a valuable car for security and can demonstrate ability to service the loan, you are assured of approval. However, in situations whereby you have a history of arrears and your income is not sufficient, a logbook loan lender might actually consider rejecting your application.
How do I stand to benefit from taking out a logbook loan?
Other than the fact that you get access to credit when you badly need it your credit score status notwithstanding, it is imperative to note that in the long run, if utilised well, a logbook loan could actually help you rebuild your credit score status. The onus is on you to ensure that you don’t default and that you actually borrow what you need. Gradually, your credit rating will improve and this means ease access to credit facilities in the future.
Under what circumstances might my logbook loan application be rejected?
While the state of your credit rating does not affect decision to approve or reject your application, it is imperative to note that there are a number of circumstances that a lender might reject your application. For one, if your car is unroadworthy, in poor condition and does not have proper insurance and tax details, your lender will definitely reject your application. Secondly, if you wilfully provide false information in your application form, your application will without a doubt be rejected. Thirdly, if you do not reside in the UK, are a minor or do not have a source of income, your application will not be approved.
I intend to use my spouse’s car as security for my logbook loan. Is that possible?
Unfortunately, no. You cannot use any car other than your own as security for a loan. When you take out a logbook loan, you sign over the ownership of the car to the lender. In other words, you cannot legally transfer ownership of a car that you do not legally own. As such, any car that is not legally registered in your own name cannot be used as collateral for a logbook loan.
Are there any fees you apply or penalties you apply if I pay off my loan early?
We do not apply any fees or penalise our customers for paying off their loan early. In fact, paying off your loan early makes you a valuable customer and could see you getting approved for loans in the future at affordable rates. You should therefore always strive to clear your loan early or in time.