If you live in the UK and have bad credit, you probably remember of a time when having a poor credit rating was a sentence of sorts, an indictment of sorts especially if you wished to apply for a loan. Back in the day, high street banks and financial lenders wanted to do nothing with a person with a poor credit rating. It was like such a person had financial leprosy and as such was deemed unfit to get approved for a loan. The situation was pretty bad as UK individuals with a poor credit rating were forced to hope for the best and literally had to try their lack with every single lender they could think of.
However, the introduction and subsequent popularity of logbook loans changed the loan landscape for people with a poor credit rating for the better. It was now possible for individuals with a poor credit score to avail a loan without having to go through the mental anguish they did before logbook loans were a reality. Of course, the catch was in the fact that logbook loans did not attract any credit checks and therefore approval for a loan was almost guaranteed. All you needed was to get a logbook loans quote and you are good to go.
What is a logbook loan?
A logbook loan from the very sound of its name refers to the kind of loan where a person’s car is used as security. In essence, what this essentially means is that you have to handover your car logbook before you can be approved for a logbook loan.
What are the specific requirements for a logbook loan?
Prior to being approved for a logbook loan, there are a number of things that UK logbook loan lenders will require from you. For starters, you must own a car and be in possession of a V5 document. You also need to be a UK citizen of legal age. These are the basic requirements. However, there are other details or documents you need to provide in order for the process to be fast tracked. These are: ministry of transport (MOT) certificate, your car insurance details, your bank details, your tax details, proof of income as well as proof of address.
Are credit checks a hindrance when seeking to be approved for a logbook loan?
The beauty about logbook loans and why it is so popular has to do with the fact that credit checks do not play any role in the approval or rejection of a logbook loan application. In fact, this is the reason why most UK citizens with a history of defaults and CCJ prefer to apply for logbook loans as credit checks are not used to discriminate against them.
Can any car model be used as collateral?
Generally, UK logbook loan lenders accept all kinds of cars provided that they are in good shape and have not been used for more than 10 years on the road. Subsequently, the said car should not have any financial attachment to it as this provides perfect ground for rejection of a logbook loan application.