You may be hesitant at first to opt for logbook loans (and for good reason) when you have an urgent need for cash, but here are some good reasons why you should consider them.
With logbook loans, you don’t really need to worry about too much paperwork. The requirements – such as proof of income and proof of identity are all very basic. As long as you can prove the vehicle ownership and affordability to meet the lender’s repayment terms, you can secure a logbook loan at any time.
Because there aren’t any credit checks carried out, you don’t need to wait around for days to weeks unlike with standard loans. If you have some cash flow emergencies, a logbook loan can be the perfect solution.
Flexible Payment Terms
Compared to other forms of lending for bad credit, a logbook loan has by far one of the most reasonable terms. You will find in many types of loans such as payday loans that the borrower has very little, if any, control of the repayment terms. On the other hand, logbook loan lenders will give you the luxury to choose how long you want to pay back the loan, and you can stretch your term as necessary.
Huge Borrowing Limit
While there may be other ways to obtain cash despite having bad credit, your borrowing limit may not be as high as you wanted. With a logbook loan though, there could be a higher cap depending on the value that your vehicle possesses, usually up to half the car’s market value. It’s always worth to have your vehicle valuated first before visiting the lender to know how much you cash you can release.
No Credit Checks
If your credit is one that is deemed unacceptable, i.e. you are currently on IVA or have been bankrupt once, a logbook loan may be the only reasonable loan option for you. Sometimes, even if your negative records are a thing of the past, some lenders may still be cautious in giving you out a loan even if your bankruptcy was filed 7 years ago. With a logbook loan, there will never be any legitimate reason for you to get rejected just by looking at your credit history alone.