What Is A Logbook Loan?

You may have heard the term logbook loan before, but were unsure of what it is exactly. There are probably a lot of questions running through your mind like: why would someone take out a logbook loan when they can just get one from a bank? How do I get a logbook loan if I decide I want one? What are the interest rates like? Can anyone get a logbook loan? If you have ever wondered what logbook loans are, or had any questions about them, read on for a complete introduction.
For starters, we'll define a logbook loan. This is simply when you take out a loan using your vehicle as collateral. The term comes from your V5, or logbook, found in every car in the UK. When you take out a loan of this type, the lender will hold onto the logbook throughout its duration. 
Logbook loans differ from other types of loans in that you are using a product as security rather than yourself. For example, if you were to go to a bank and apply for a loan, they would probably check your credit history. This would give them an idea of how good you are about paying your bills on time and how likely it is that you'll pay them back. With a logbook loan however, there are no credit checks. This is ideal for any person who currently has bad credit. You'll use your vehicle to secure the loan, instead of your credit rating.
Another feature of logbook loans is how quickly you can get one. With a bank, there is a considerable amount of time needed to fill out all of the necessary paperwork, and then you have to wait for the funds. By getting a logbook loan online, you can typically have your money within 24 hours. All you have to do is simply fill out an online application (like ours), wait to be contacted by the lender (this happens quickly) and then work out the final details. After that, you'll have your money transferred to you in a few hours. This is perfect for anyone who needs cash immediately and doesn't have time to wait for a bank.
Logbook loans are generally used by people in the short term. They have hit an unexpected financial bump, and need a quick influx of money. They can be used for pretty much anything, as the money is yours to spend. Logbook loans typically have higher interest rates than other types of loans however. This is because logbook loans are typically handed out to those with poor credit, and the lender needs some security.
Before you get a logbook loan, the lender will usually want proof of income. This means either providing a pay stub, or if you are self-employed, a bank statement. They want to make sure you are able to repay the loan, and that repossession of the vehicle is a last resort.
If you meet all of the eligibility requirements for a logbook loan, you can get money today by filling out our simple online application. It takes only a couple of minutes, and after that you'll be shortly contacted by us. From there it is only a matter time before the money is in your account. If you need money fast, don't wait any longer and apply for a logbook loan through Notts Chamber today.