Are you looking for the fastest and most convenient short-term financing aid available?If yes, logbook loans may just be the answer to your prayers. Logbook loans are designed to provide immediate cash assistance regardless of credit history and they cater to all borrowers of any kind. They are basically meant to provide money to the debtor by means of a vehicle which serves as collateral. The borrower will need to submit his car’s logbook to the lender, which will tend to transfer the vehicle’s ownership temporarily to the lender until the loan is paid in full.
So what makes logbook loan beneficial? Here are the six reasons:
1. Less Risky for the Lender
Logbook loans are backed by a security (your car), hence there is less risk for the lender. That is the reason why logbook loan companies can afford giving loans that quickly.
2. Flexible Payment Options
With logbook loans, you can choose a payment duration that best fits your capabilities to pay. You can choose to pay in weekly or monthly installments. The length of the loan can also be customized, ranging from weeks to several months.
3. Instant Approval
The processing logbook loans is fast and logbook loan companies offer same day approval, some even get their money within an hour of application. This is very convenient for those who do not have the time to visit a traditional lender and are in dire need of immediate cash for whatever reason. If you are in this kind of situation wherein you need to raise funds in such a short time, a logbook loan might just be the type of loan you are looking for.
4. No Credit Checks
Its availability to people with non-existent or poor credit scores probably is the main reason why logbook loans are popular and attractive. Even if you are self-employed, have been bankrupt, or a CCJ was filed against you, logbook loan companies can provide you the financial aid that you might not be able to get anywhere else.
5. Easy Requirements
The process for logbook loans is simple and unlike other loans, logbook loans have fewer and simpler requirements. You can definitely avail of this loan if you are a citizen of United Kingdom, at least 18 years of age, and a legal owner of a vehicle with no outstanding finance, you can apply for a logbook loan anytime of the day. Other requirements that you have to present are the following: proof of identity, proof of income or bank statement if you are self- employed, your vehicle’s MOT certificate, and logbook or V5 document.
6. Short Term Duration
Logbook loans are designed to last for several months to more than a year at the maximum. This is very unlike other loans that last for a few years. Though the interest rates are typically higher, this short duration makes it easy to get the loan over with. In addition, you can pay off the full amount of debt earlier without suffering from early settlement fees, perfect for one-time expenses that you can pay very soon.
Each kind of loan has its own distinct quality from the rest, has its own pros and cons, and has its own target of applicants. Some dispute logbook loans, while some are consistent believers. There is no such thing as a perfect loan, and it’s almost guaranteed that there will be a catch. It all depends on how it works on you and what you really need and want. However, it is your responsibility to know the highs and lows of the loan you are planning to apply for and check its effect on you and your plans. This is necessary for you to determine if the risks that you are about to take are worth the benefits.