Even if you are struggling with debt, there comes a time when you will need a loan product. This may be due to unforeseen expenses. For example, your car might require repairs, you may have an unexpected family bereavement or you may need money for your children’s school trip.
Unfortunately, these all require cash and unless you are able to save every month, the chances of you having this cash are fairly low. It is in situations like this that people turn to loans.
If you suffer from a bad credit rating however, the chances of being approved for a loan from a regular high street financial institution or bank are nonexistent. You credit rating will see to that for sure.
So what do you do? Well, there most certainly is hope for you and your family. This comes in the form of a logbook loan.
What is a logbook loan?
Logbook loans are becoming available from a range of financial service providers across the United Kingdom. This loan product is offered against the applicant’s vehicle, be it a motor car, motorbike, van or even a caravan. The loan amount, usually anything from £250 – £50 000, depends on both the condition of the car as well as the mileage it has travelled. The newer the vehicle the more money you can secure against it. Generally, it must be no older than 10 years, however.
The application process is very simple. Of course, your vehicle will need to be assessed but don’t forget the following documents as the loan provider will need them to process your loan quickly and efficiently.
These documents include your identification, the MOT certificate of the vehicle, proof of comprehensive insurance on the vehicle, wage slips for the past three months, bank statements, the logbook from the vehicle and finally, proof of address for the applicant (usually a utility bill or a letter from your bank or landlord will suffice).
A word of warning, your vehicle must be totally paid off if you wish to apply for a logbook loan, there cannot be a finance deal outstanding on it. Also, once the loan is approved, you may still use the vehicle but you are no longer the owner for the duration of the loan. This protects the loan institution should you choose to stop paying the loan instalments each month. They then have a legal right to sell the vehicle to recover their costs. Note however, this is not a decision that is idly taken, although it must be said, do not miss any payments as it does not do anything for helping to improve your credit rating either.
Logbook loans are a great financial product for those who are suffering from poor credit ratings or even for someone starting out in their life and looking to build up an effective credit history. Get a logbook loan deal fast by clicking here for even more information about the product.