Using Your Car As Collateral When You Need Money

Nowadays there is a vast array of different ways in which people can borrow money. There are payday lenders, bank loans, credit cards, unsecured loans, and secured loans – to name but a few. The latter option is one which is proving to be particularly popular, with logbook loans, in particular, proving to be a hit. This is a loan secured on car, and so the individual borrows money based on the market value of the car and if they do not pay the money back then the lender has the right to take the vehicle. 

There are many benefits associated with going for a logbook loan. One of the main advantages you will reap from securing a loan against your car is that you will not have to go through the credit check procedure. This is highly beneficial because it means that those who have a bad credit rating are eligible to take out a logbook loan. Moreover, some people are not even in the position to have a credit check – they may have not been working for long enough, they may not have lived in the UK for long enough, they may not have any credit cards, and so on and so forth. Thankfully, a logbook loan does not require any of this, and so eligibility proves to be a lot easier. 

Another reason why opting for a loan secured on a car is recommended is as follows; it is a great way to attain fast cash. Most companies will have the money in your bank account within a day of having your application accepted. In fact, some of the top companies provide payment within a mere hour or two. Therefore, this is a fantastic option for those individuals who need money as soon as possible. You can relieve all of the stress off of your shoulders and have the money ready for any payments you need to fund.

Aside from no credit checks and quick cash, the application process tends to be extremely simple. Most companies offer a system whereby you can apply for a loan via filling in a form on their website. The company in question will then get back to you and provide you with information regarding what documents they need you to send, whether you need to send a set of spare keys and so on and so forth. Everything which is needed will be arranged quickly and conveniently so that you can get your money as soon as possible. 

In addition to this, a logbook loan acts as a great option instead of going for a payday loan. A lot of people deter from going for the latter because they fear monumental repayment terms and interest rates. However, payday loans provide people with smaller amounts of money – hundreds to a couple of thousands of pounds, and for some people, this is all they want to lend. A logbook loan allows you to borrow small amounts and thus acts as a great alternative. 

Guidance on how to locate the best company providing logbook loans

If you turn on the TV you will see a wealth of different adverts suggesting various ways of borrowing money. Nonetheless, you need to be extremely careful regarding which one you go for because a lot of the ‘solutions’ end up with individuals finding themselves in even more debt. So, what do you need to consider when looking?

Entry requirements – Does the company carry out stringent checks? Will you need to have a glowing credit rating? One of the reasons people prefer logbook loans is because the criteria level is supposed to be low. Previous credit history should not matter. Therefore, the company you select should not disregard you because of this.

How much can you borrow? – You will obviously want to borrow from a company who can provide you with the amount of money you need. In general, a logbook loan is for someone looking to borrow a small amount of money i.e. £100 to £5,000. 

Reputation – It is always a good idea to see what previous customers have to say about the service they read. Head to the testimonial page on the lender’s website. Remember; these people were once in your position, so they are going to tell you all of the information you truly want to know. If the company doesn’t have a review page then this should act as a major red flag. This is important whether looking for debt consolidation loans, mortgages, or any other type of lending.

Repayment options – This is arguably the most important point. When will you have to start paying the money back? How frequent will instalments be? How much will each instalment be set at? How much is the APR? Don’t agree to the service until all of this information is crystal clear. You need to be certain you will be in a position to pay the money back as the company requires you to. 

How long does it take to receive funds? – Another reason why so many people go down this route is because logbook loans provide people with quick cash. In fact, some of the best companies will even deposit your money within an hour of your application being approved. You definitely should not have to wait longer than a 24 hour period. 

Application process – A lot of people have put off lending money because of the lengthy and complicated application process associated with so many companies. There is no reason why you should experience this. Make sure the form is easy to fill in, everything is explained and that it does not take too much of your time. 

Confidentially – Last but not least, make sure the company operates to the optimum levels of confidentiality. No details of your borrowing should be released to anyone else.

As you can see, obtaining a loan which is secured against your car is a great solution when seeking some extra cash. You don’t need to have a credit check, you can get the money quick, eligibility is easy, and application is simple.