Log Book Loans
We'd all like to think that we know how to manage our money but the truth is that it's very easy to find yourself running short of money and in need of a loan. One option is a normal loan from one of the high street banks but you may not want to go down this route.
It can take sometime for them to process your application and it will certainly involve a credit check. You may need the money very quickly or you may be already aware that your credit rating isn't particularly good. In that case you may wish to look at other options.
One way to get a loan is by using your car as collateral. To get a log book loan you must 18 or over, a UK resident and either legal own the car outright or only have a small amount of finance outstanding on it. You can borrow against any type of vehicle as long as it has a V5 log book.
To get the loan you simply fill in the online form on which you'll need to give your personal and contact details, and the details of your car and then wait to be phoned back to find out whether or not you've been approved. Most lenders try to call back within 2 or 3 hours, some a lot less. You can usually borrow up to 75% of the value of your vehicle.
Once you've been approved you'll need to deal with the paperwork. You will either have to visit them at your nearest branch or they will come to you so that you can sign the log book loan agreement and hand over your V5 and any other documentation they've requested. Don't forget to read all the small print before you sign on the dotted line, you need to know what you are agreeing to.
Once everything is signed you will be given your money in the form of a cheque, bank transfer or even cash. In most cases you'll have your funds within 24 hours of your application and you can use the money for what ever purposes you like be it to carry out emergency repairs or ease a cash flow problem in a business.
As you can see log book loans are quick and easy but you do have to pay them back. Interest rates on log book loans are higher than on normal loans but much lower than on a payday loan. You'll find that most lenders give you an idea of how much you'll eventually pay back on their website before you apply.
However you can pay off your loan before the agreed time and save yourself a substantial amount of money. It’s always best to do this where possible.