What is the probability of getting approved for a logbook loan even though I have a history of defaults?
Well, if you have a history of defaults, you have every reason to apply for a logbook loan. Why is that? Well, logbook loans are generally suitable for individuals with a poor credit rating or history of CCJs. No credit checks are essential and so long as you have a car in good condition and can show proof of ownership, you can always sign off the cars logbook in exchange for the money you need.
Can I use my wife’s car as collateral for a logbook loan?
Unfortunately, that cannot happen. The rules are very clear that in order for you to qualify for a logbook loan, the car you set up as collateral should be one that you legally own. In other words, you cannot use your spouse’s car, relative or work colleague as collateral for your loan.
How complicated is the application process for a logbook loan?
The beautiful thing about applying for a logbook loan is the fact that the application process is pretty simple and straightforward compared to taking out a loan from a high street bank. Considering the fact that the paperwork is simple and the requirements quite basic, logbook loans application is pretty much a simple process.
What do I require to be considered for a logbook loan?
In order to be considered for a logbook loan, it’s incumbent upon you to show proof to the lender that you own the car you wish to use as security, show proof that you are a citizen of the UK, an adult above the age of 18, receive a regular income, proof of insurance and tax details, and produce a MOT (ministry of transport) certificate. Once you have this, and your cars value can support the amount of loan you are asking for, you can be rest assured that your loan will not only be considered but also approved.
There are cases of penalties whenever a logbook loan is repaid early. Is that the case with you?
Not at all. It is true that there are a couple of logbook loan lenders that penalise their customers for clearing their loans ahead of the stipulated time. That is not the case with us. In fact, we encourage our customers to pay up their loans the soonest possible as it not only puts them in good standing with us but also ensures that their credit score is improved for the better.
Can I be considered for a logbook loan even though I am not of legal age?
If you are a minor and not yet 18 years of age, you cannot be considered for a loan because you are not legally allowed to enter into any contractual obligation. To do so would be akin to shooting yourself in the foot as such an agreement with a minor cannot be enforced in any court of law.
What are the risks in a situation whereby I am unable to pay for my loan?
Well, defaulting on your loan for starters will see your credit score dip for the worst. Secondly, you could lose possession of your car to the lender who might decide to sell it off as a measure of last resort.