How does a logbook loan actually work?

When you've been accepted for a logbook loan it is actually quite a simple arrangement. You pay the loans company a regular amount, usually each month and they keep the v5 document. You can drive the car as normal and providing you pay the regular amount to service the loan it is very straightforward. It is only when you miss your regular payments on a frequent basis that you put your car at risk of being repossessed. if you would like to pay back your loan early, speak to the loans company, many of them do not charge early settlement fees.

Can I get a loan of I have bad credit?

Logbook loans companies usually use your car as security for your loan, rather than looking at your credit rating. So if you have a bad credit rating this usually does not have any impact on the chances of you being able to get the loan. You are more likely to be assessed on the value and age of your car and your regular income rather than using your credit rating.

How quick do logbook loans normally go through?

Logbook loans can be very quick to be approved, many within hours of the application being made. Most people who apply for short term loans like this need cash fast and lenders are set up to be able to process loans very quickly. Much of the time frame depends on whether you are approved for the loan and how quickly you can be ready to sign the documents.

How can I get the cheapest rate of interest?

The best way to get the cheapest loan is to shop around and choose the company with the lowest rate. The short term loans industry has generally been characterised by companies charging high interest rates. However there are some companies that are offering very competitive rates and undercutting others to build up a large customer base. By opting for a far lower rate you are saving a large amount of interest each month and it will be worthwhile.

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