What is a logbook loan?
To meet growing demand for more varied types of loans, many direct lenders now offer logbook loans in a variety of formats. A logbook loan is a type of loan in which you use your car, motorbike, etc, as collateral against the loan you are taking out. Called logbook loans because lenders in the past required you to give them the actual logbook of your vehicle before they would give you the money, modern lenders still offer these loans.
While most modern lenders do not now require your actual logbook, some will still insist on this, and therefore you should always check before agreeing to a loan. What this means is that for the duration of the loan, the lender is the legal owner of your vehicle. However, this does not mean that you lose your vehicle. You will still be able to use it every day just as you have been doing, and when you have repaid the loan, ownership of the car is returned to you. Problems will only arise if you run into difficulties making your monthly repayments. Whilst many direct lenders will have their own specific conditions regarding their loans, most will not allow you to borrow more than a certain percentage of what they value your vehicle at.
Can I get a logbook loan with bad credit?
Many of the lenders we feature on our panel offer a variety of products, including logbook loans for people with bad credit. While most lenders will still require you to place your vehicle as security on your loan, thanks to increased competition and increased regulations, these loans are now much more competitive than before.
With logbook loans readily available online, it is now much easier to apply. If you suffer from a poor credit score, we are here to help. We focus on people who traditionally struggle to get approved for a loan, we feature many different types of loans and lenders. One such example is logbook loans for the unemployed. Whereas in the past, if you were not working you could not get a loan, many lenders these days understand that a person can be out of work for a number of different reasons. Therefore, many of our lenders now offer competitive, regulated quick loans for people who are not currently working but have the ability to repay their loan.
These loans are not as risky to you or the lender as you may think. This is because you will still be required to give your vehicle as a collateral. As such, lenders are much more likely to approve your loan as your vehicle serves as a safety net for them. Requiring no obligation on your part, we can quickly help you compare and select the best lender and loan for you.