LOGBOOK LOANS – Securing Your Loan (Key Points)

Logbook loan is a British term which means to secure your loan with the borrower’s vehicle.
In this loan, the lender retains the registration certificate of the borrowers’ vehicle or the logbook while giving loans to it. This logbook or registration certificate remains in the possession of the lender until the borrower repays the loan and this way the lender finds himself in a secure place whereas the borrower is bound to pay the loan back.

If the borrower fails to do so, then the lender has the right to repossess the vehicle which does not require any court order. Logbook loans are very much secured as not only the lender feels secure that even if the loan is not repaid he gets to use the vehicle and gets the possession whereas the borrower is also obliged to repay along with the interest.

But for that, the lender has to inquire well the registration certificate or the logbook of the vehicle given by the borrower whether it is registered in his name or not. Therefore the main advantage of logbook loans is that it is completely secured.

The main disadvantage of logbook loans is that it offers a very high rate of interest which other lending or credit institutions do not offer whereas its terms and conditions are quite strict too. Because of such unfair terms and conditions, logbook loans are losing their appeal in a couple of parts of the world especially United Kingdom.

Logbook loans are available from £500 to $50,000 which depends on what is the worth of the vehicle, whereas you get to borrow fifty percent of the vehicle’s total value. Like other easy, affordable and reliable loans, logbook loans are very helpful, useful and quick. It is quite helpful and an open yet hassle-free way for those who have bad credit history and have been rejected by banks or other credit institutions. Thus, these people get cash immediately in logbook loans.

These loans run up to 70-78 weeks or earlier if you repay, but it is quite important that you are aware of the terms and conditions to prevent yourself from losing the vehicle. The procedure to be followed to get logbook loans is not at all detailed or require a lot of hard work or documented work unlike other loans. All it requires is a 15 minute time to hand over the logbook of the vehicle, the possession of the vehicle, sign an agreement and there you go. But along with that you have to give a proof of your steady source of income so that the lender is satisfied that you are not involved in any illegal work or such so.

As logbook loans are quite easy and reliable but at the same time they may get quite risky as if you fail to repay the loan at the time mutually agreed or whatsoever then you may wash your hands of the vehicle.

Why Logbook Loans Are Becoming a More Attractive Option to Borrowing

Let’s face it, taking out a loan from a bank is becoming increasingly difficult and it’s only those with the best credit scores who are able to get loans without much trouble. This is one of the main reasons why the majority of people are now turning towards alternative lending options such as pawnbrokers, payday loans, and logbook loans.

According to Citizens Advice, the amount of logbook loans that have been taken out year-on-year has increased by approximately 60% since the year of 2011. Throughout the next few sections we’re going to discuss the important factors that have resulted in this increase.

More Likely to Be Accepted

When you apply for a logbook loan—compared to a traditional bank loan—you are much more likely to be accepted. This is especially true for those of us who don’t have the best credit score.

You only have a few options to choose from if you have a poor or nonexistent credit score, and traditional lending definitely isn’t one of those options. A logbook loan will provide you with easy access to funds whilst your vehicle is used as security.

Whether you need money to carry out home renovations, pay an emergency bill, pay a fine such as a speeding ticket, or for any other reason, you can rest assured that a logbook loan will take care of you.

Larger Amounts of Money Can Be Borrowed

Even if you have a decent credit score, you might not be able to lend as much money as you need from the bank. Alternative lending options such as going to a pawnbroker or a payday loan company aren’t always suitable because you usually can’t get as much as you need either.

On the other hand, a logbook loan company is more likely to lend larger amounts of money to you because you have a significant asset as security. Keep in mind that the amount you can borrow will largely depend on the value of your vehicle.

Not only will you be able to lend larger amounts of money, but you’ll also find that the interest rate (APR) with logbook loans is much lower compared to other alternative lending options. This is simply because your vehicle is going to act as security, so the lender is taking a much smaller risk.

Fast Access to Money

Just like many other alternative lending options, logbook loans allow you fast access to your money—at least, much faster access compared to banks. You can expect to wait at least a week or two before receiving money from your bank, but with a logbook loan your waiting time can be reduced to as little as 24 hours!

This makes logbook loans ideal for those people who are in desperate need of funds, perhaps they have an emergency bill to pay, or need to have an emergency repair carried out on their home.

Closing Notes

There are many advantages to logbook loans and it’s easy to see why they are becoming so popular amongst the public who are thinking about borrowing. Traditional lending options such as bank loans are becoming increasingly difficult to obtain, which has resulted in many people taking out a logbook loan.

So You’ve Bought a Car That Has an Outstanding Logbook Loan

Logbook loans have provided many people in the UK with a way to borrow money without being subject to a credit check—this means that even those people with poor or nonexistent credit scores have a way to borrow large amounts of money.

Even though this is great news for borrowers, there are some downsides of logbook loans. Some people are deciding to take out a logbook loan on their vehicle and then sell the vehicle to an unsuspecting consumer with the logbook loan still attached to the vehicle.

This can have very serious consequences and often results in the seller of the vehicle being taken to court whilst the buyer tries to reclaim thousands of pounds.

The Lender Wants to Repossess Your Car, What Can You Do?

If you have recently purchased a vehicle with an outstanding logbook loan then don’t be surprised if you receive a letter threatening repossession, or even if an enforcement officer turns up on your doorstep.

Unfortunately, you might not be able to stop your newly purchased vehicle from being repossessed, but here are some things that you can do to protect yourself as much as possible:

Any legitimate enforcement officer will be carrying an identity card along with a letter stating that they have authorisation to repossess the vehicle. Ask to see these documents.
Ask to see the logbook loan (bill of sale) document.
Make sure to get all details in writing from the enforcement officer, this includes the following: the logbook loan company they work for, and confirmation of what has been taken.
Always remember never to compromise your own safety and don’t hesitate to contact the police if the enforcement officer is acting aggressively towards you.

If your vehicle is about to be repossessed then the best thing to do is cooperate—preventing an enforcement officer from repossessing a vehicle which they have a legal right to repossess could get you into more trouble.

Has Your Car Been Repossessed?

If your car has been repossessed then there are a few steps that you can take to get your money or your car back.

First, you should contact the seller and explain what has happened. The seller might be willing to give you your money back if you are insistent. However, the chances of you getting your money back from the seller will be low considering that they knowingly sold you the vehicle with an outstanding logbook loan.

Your best option would be to get the contact details for the person who sold you the car and take him/her to court. Remember to seek legal advice before you do this and you’ll have a good chance of getting your money back.

Protecting Yourself in the Future

Unfortunately, there is only so much that you can do if you have purchased a vehicle with an outstanding logbook loan. It’s important to know how to protect yourself so the same thing doesn’t happen again in the near future.

There is actually quite a lot that you can do to protect yourself when purchasing vehicles in the near future. For more information, read our article on Protecting Yourself from Logbook Loan Scams.

Protecting Yourself from Logbook Loan Scams

Logbook loans scams have been on the rise recently, with more people realizing that they can take out a logbook loan against their vehicle and then sell their vehicle on to an unsuspecting buyer.

If you don’t know what you’re looking for when purchasing a secondhand vehicle, you could soon find out that the vehicle has an outstanding logbook loan. This could result in the car being repossessed and you’ll be thousands of pounds out of pocket.

Throughout the next few sections we’re going to tell you how you can protect yourself from logbook loan scams.

Do the Standard Checks on the Vehicle

It’s common knowledge to do standard checks on any vehicle before you even think about purchasing it from someone you don’t know. You should carry out the checks to ensure the vehicle is running smoothly, efficiently, and exactly how the buyer described.

In addition, you should also make sure that the Vehicle Identification Number (VIN) matches the number on the logbook. The VIN can usually be found in the lower-left corner of the dashboard, close to the steering wheel. If you can’t find the number there, then check at the front of the engine, and the front of the car frame.

Carry out a Quick HPI Check

A Hire Purchase Information (HPI) check is a quick and simple check that can be done online in just a few minutes. All you need to do is a find a website that carries out these checks—make sure that it’s a legitimate website and displays the official HPI seal—enter the car’s registration number and your email address. You’ll have your report in just a few moments.

Keep in mind that these checks aren’t free, but they’re not expensive either—you can expect to pay just a few pounds.

It’s extremely important to carry out one of these checks, as www.hpicheck.com points out, every 1 in 3 cars that they check has something to hide. These reports are also backed by a £30,000 guarantee meaning that you’ll be protected if the information is wrong.

Get a Receipt and Contact Details from the Seller

Conducting a HPI check is a great way to protect yourself from logbook loan scams, but it’s not the only thing that you should do. You should also get a receipt from the seller (you can find templates of receipts online if you want to take one with you), as well as the seller’s contact details.

This will give you peace of mind and provide you with an extra layer of protection if the data on the HPI check turns out to be incorrect.

Complaining about a Logbook Loan Company

The most trustworthy logbook loan companies are members of the Consumer Credit Trade Association (CCTA). This association has a code of practice, meaning that its members can only operate under certain terms. Any logbook loan company registered with the CCTA must register the loan so that it shows up during a HPI check.

If the logbook loan company is a member of the CCTA then you can complain directly to the association. You can find more information by going to their website: www.ccta.co.uk.

Logbooks Loans vs Payday Loans: How Do They Compare?

If you’ve been struggling with your finances recently then you might have went to the bank only to find that the banks aren’t lending to just anyone anymore. Nowadays, banks are being much more careful with their lending and it’s unlikely that you’ll be successful for a loan unless you have an excellent credit score.

This has resulted in people turning to alternative lending options. Throughout the next few sections we’re going to discuss the importance of alternative lending options, and then we’ll compare two of the most popular types of alternative lending: logbook loans and payday loans.

The Importance of Alternative Lending Options

Alternative lending options have never been more important than they are today. In today’s world, it’s more common for a person to have a poor credit score, meaning that receiving a loan from a bank is extremely difficult.

Those with a poor or nonexistent credit score are going to have a much easier time borrowing money through an alternative lending process—these include: logbook loans, payday loans, and pawnbrokers.

The Pros and Cons of Logbooks Loans

If you are looking for mid-term lending than a logbook loan is going to be more suited to you. These types of loans are generally kept open for 3-24 months. You’re going to have more flexibility with these loans and you can expect to receive your money in as little as 24 hours.

Logbook loans are also inexpensive compared to other types of alternative lending, you’ll find that lenders are much more willing to give you a lower interest rate with these types of loans.

If you decide to take out a logbook loan, it’s important to keep in mind that you’ll need to put your vehicle up as security. You’ll still be able to use your vehicle throughout the duration of the loan, but it might be repossessed if you can’t keep up with repayments.

The Pros and Cons of Payday Loans

Whereas logbook loans are best used for mid-term borrowing, payday loans are best used for short-term borrowing. Payday loans generally only last for no more than 30 days (or until the borrower’s next payday), hence the name.

As these are very short-term lending options, you’ll find that the interest rate can be extremely high. The popular payday loan company Wonga was banned from using a TV advert in 2014 because it failed to mention the huge 5,853% annual interest rate.

Which One Would Be Best for You?

There is no one-size-fits-all solution when it comes to lending, what works for one person might not necessarily work for another. Logbook loans would be a better fit for you if your vehicle has significant value, you don’t want to damage your credit score, and you need more flexibility with the funds. On the other hand, a payday loan would be better if you only need a small amount of money and not much flexibility.

By far the most important aspect of lending is the repayments. You need to make sure that you can make the repayments on time so that you don’t get yourself further into financial trouble.

How to Find the Best Deal for a Logbook Loan

In today’s world, getting a loan from a bank isn’t always the easiest option—in fact, it’s actually becoming a rarity. Consumers are now looking for alternative options that provide them with a much easier and more convenient way to borrow money. This is especially true for those people who have poor or nonexistent credit scores.

Logbook loans are just one type of alternative lending options that people have been taking advantage of recently. According to Citizens Advice, these loans have increased in popularity by over 60% from 2011. Let’s look at how you can find the best deal for a logbook loan.

The Reputation of the Lender

You’re much more likely to be accepted for a logbook loan than a traditional personal loan, especially if you have a credit score that is anything but satisfactory. This is mainly due to the fact that your car will act as security if you can’t keep up with repayments.

Even though this might seem great, you’ll find that there are lenders on the market that don’t operate as ethically as they should—you’ll notice this by their reputation. Logbook loans are unregulated, and so you need to be extra careful when dealing with lenders.

Some lenders will charge higher interest rates compared to others, but it’s their reputation that you should worry about the most.

How Are You Going to Make Repayments?

If you are planning to take out a logbook loan (or any sort of loan) and you haven’t yet thought about how you’re going to repay the money that you have borrowed, this is simply setting yourself up for financial trouble.

You should go through your finances and check everything as closely as possible—make sure that you are going to be able to afford the monthly repayments.

Even if a certain lender has a higher interest rate, it might be worthwhile taking out a logbook loan with them if they are more flexible with repayments compared to other lenders.

Alternative Options

Apart from doing your research, taking the lender’s reputation into account, and thinking about how you’re going to make repayments, there isn’t much you can do to find the best deal for a logbook loan.

So, you can treat this as a “bonus section”. You should always think about alternative options before you go ahead and sign on the dotted line with a lender. If you’re thinking about a logbook loan then you might not have many more options as far as traditional lending goes, but there might be some ways you can cut down on your day-to-day expenses.

Closing Notes

When we think about getting a loan, it’s easy to become attracted to the low interest rate that is being shoved in our face. However, there are so many more factors that you need to consider, as we have discussed in the above sections.

Of course, the interest rate is definitely an important factor, but what about the reputation of the lender, the repayment options, and even alternative options? These are all important factors that you should take into consideration before you take out a logbook loan.

How Most People Tend To Use Logbook Cash Loans

One of the common things that people notice when looking at logbook finance, is the fact that these loans do tend to have a rather high interest rate.

This also tends to impact how people borrow money on these particular arrangements, because it usually makes people borrow only the amount they need to borrow…

So this impacts the way that people use logbook loans, usually making them act in a way that is a lot more responsible and realistic when taking out finance of this nature, which serves to make them more responsible borrowers, and as a result makes the whole exercise of commissioning a logbook loan a much more pleasant and stress-free experience.

With the interest rate being high, this is usually a reflection of the risk of borrowing to a certain demographic of people (i.e people who would borrow money against the value of their car, who usually have a bad credit rating), it is categorised as a risky proposition to borrow to an individual in this position and so this is reflected when calculating an interest rate.

In the past, there have been a large number of people who have defaulted on a log book loan, and as a result have ended up being chased by debt recovery firms and other legal intermediaries, and in some cases, people have had their vehicle repossessed.

However, if people take care only to borrow the money they know for certain they can manage to pay back to the lender, then they can rest much easier that the risk of them getting into trouble as a result of a default is much lower than if they applied for a larger loan.

Most people tend to take out smaller loans of less than £2,000 on a logbook arrangement, perhaps because of the fact the loan is secured against their vehicle, this, as a consequence is thought to not only mitigate the risk to the lender, but also influences the size of the loan that the person applying is willing to apply for, right from the outset.

Here at logbookloansplace.co.uk, we want to promote responsible lending, we don’t want any of our visitors to suffer a bad experience as a result of incomplete information, or irresponsible borrowing OR lending, that is why we provide these articles as a guideline to people, so they can read and educate themselves BEFORE making any purchase decisions with regard to a loan secured against your vehicle.

If you want to apply for logbook loans visit the homepage.

Quick Options For People Who Want Quick Cash

This article is to outline to the many thousands of people out there, some of the options that are available to them if they are looking for quick cash loans.

Payday Loans – a payday loan is a short term financial arrangement that is designed to be used as a 30 day (or less) financial cash bridge, that helps customers to get cash into their bank within 15 minutes, so that they can meet any pending bills they might have coming up in the near future, i.e the car needs an MOT, a payday loan might just come in handy, etc etc..

Guarantor loans – Loan arrangements where it is necessary for the individual applying for the loan to have a guarantor in order to “guarantee” the repayments in case they cannot be made by the person who received the loan, important for people who have poor credit ratings who want a loan up to £10,000

Logbook Loans - Quick loans that are available to people who drive a vehicle (car or motorbike usually) who are comfortable with risking their vehicle in order to procure the finance that they need, logbook loans are usually a last resort for people because the loans are expensive, many of them reaching interest rates as high as 500% which is a staggeringly high rate for a small loan.

However these are not the only options for people looking to get their hands on a quick loan, if you have a good credit rating then you can apply for more conventional types of loan, such as a bank loan (small unsecured personal loans) many of which have interest rates lower than 15% APR meaning that they are much less expensive than other types of bad credit loan.

On the whole, how expensive a loan is usually depends on 3 primary factors

1/ How much you wish to borrow (of course larger loans have less manageable repayments)

2/ The interest rate on the loan, generally speaking the higher the interest rate the more expensive the loan in the first place.

and

3/ The repayment period, (however this is swings and roundabouts because if you opt for a longer repayment period, this can make loans more manageable, BUT typically more expensive in the long run, because the annual interest will be adding significant amounts of money on to the balance of the loan to be repaid).

So there you have it, an article about the quick loan options for people who want to get their hands on quick cash (tailored more to people with a bad credit rating).

 

 

 

Should You Get A Logbook Loan?

Logbook loans at the moment are receiving a lot of bad press in the light of the financial regulatory reforms being undertaken by the FCA (since they took over legislative authority from the Office of fair trading).

When faced with the question, should I avoid logbook loans?

There are some major things to consider:

- Do you feel confident that you can make the repayments on the finance you intend to borrow? Particularly important due to the fact that if you default on the loan then you will likely be pursued for the repayments, and also, in extreme cases it is even possible that the vehicle you have put up as collateral for the loan could even be repossessed.

- Can you get a loan with the banks or some other financial corporation? Check this first because the interest rates will almost certainly be MUCH MUCH lower with the banks, even other types of bad credit loan are usually cheaper in terms of the interest rates, logbook finance is a bad credit loan option that is intended for people who cannot get more conventional loans due to having a poor credit score.

- How Much Do I Need To Get My Hands On? Put Simply, the more that you borrow, the more you must pay back, take this into account when doing your financial planning for the month ahead, you must have enough disposable income to cover the repayments, otherwise there could be serious implications as a result of neglecting to check this over.

- Are you comfortable with the interest rates? This also has a bearing with the above point about repayments and the amount of money that you borrow, as the its not just the loan amount that impacts the repayments but also the interest rates, AND ALSO….

- The Loan Repayment Term, is it manageable? You want to check to make sure that you can repay the loan over an acceptable period of time so that your monthly finances are manageable, this point is relevant to all the points above.

In summary, there is no fooling around with these loans, you should only get one if you can afford it because the implications are no joke.

If you feel uncomfortable at any stage of the proceedings of getting a loan then you need to ask the right questions to the company you are putting in an application with, be sure that you are making the right decision.

- The positive side of things used correctly, and if affordable to you, logbook loans can be as useful as many other types of finance, yes they are costly, but the amount of money that can be made available to you can be much higher than more traditional loans, (with logbook loans of certain types you can borrow up to £50,000) the main alternative to this would be a secured loan, and with secured loans these are secured against your property which if defaulted on you can lose your property! (however loans secured against a property are much cheaper of course).

Used responsibly logbook loans can be a powerful utility for unforeseen expenses. To apply for a logbook loan visit the homepage in the link above.

 

Logbook Loans Vs Guarantor Loans : An Overview

This article is explores the key differences between the two types of loan, Logbook loans & guarantor loans.

What is A Guarantor Loan?

A Guarantor loan is a loan agreement where there must be a “guarantor” present, a guarantor is someone  who guarantees the payments in the event that the person commissioning the loan cannot make those repayments, if the person who commissioned the loan cannot make the repayments, then the guarantor must make the repayments in place of the person who has the loan credited to them.

Key Advantages Of Guarantor Loans:

Much lower interest rates than with payday & logbook loans

Cash can be paid out to the customer quickly, minimising waiting periods

Can borrow up to £10,000 which makes the loan more versatile than smaller loans for smaller sums of money

Key Disadvantages of Guarantor Loans:

- You will need a guarantor, these are not always easy for people to find because the guarantor must trust you enough to guarantee the loan for you.

- With the maximal loan value being usually up to £10,000, this might make life awkward if you require more cash than this

- Many Lenders require that the guarantor be a tenant, and/or have a good credit rating to be approved.

What Are Logbook Loans?

Logbook loans are loans that have a vehicle secured against them as collateral, More information about this is available at the logbook loans place homepage.

Key Advantages Of Logbook Loans:

- With logbook loans, you can borrow (in most cases) up to £50,000 provided there is sufficient value in your vehicle for that amount of money

- Loans can be administered quite quickly, making cash available soon (usually in about 7 days)

- Long term repayment options are available to qualifying customers

Key Disadvantages Of Logbook Loans:

- High rate of interest on the loan, despite the loan being secured against a vehicle

- There will need to be a qualifying vehicle of sufficient value for the loan to be approved and commissioned to the customer

- A vehicle can be repossessed as a last resort if the customer defaults on the loan and does not make the repayments

In summary to the above, both guarantor and logbook loans have both advantages and disadvantage, the key for any potential customers when trying to determine which loan is best, is to look at both the advantages and disadvantages, and the terms surrounding both loan types and see which one meets your needs the best.

Another thing to take into consideration, is the fact that there are different available balances you can apply for on both loans types, so if you need less money for example, and do not feel comfortable in putting forward your car as security for the loan, and can also find a suitable guarantor, then perhaps that would be a more suitable loan.

With logbook finance, the aim is to cater for potential customers, who want quick loans (usually up to £50,000) who are willing and prepared to put their vehicle forward as collateral in order to secure the finance that they wish to apply for.

Consider your options carefully before entering into a loan arrangement.