Having credit defaults (CCJs) and bankruptcy concerns hanging over your head can be very stressful. The ability to acquire loans from banks can be seriously affected and this can have real life implications in terms of your quality of life.
If you’ve been researching ways to get credit when you have a poor credit history, then you may have come across Best Logbook Loan Companies. These are businesses that are fully licensed with a Consumer Credit Licence and comply with OFT regulation (now FCA regulations). They generally focus on providing people, with bad credit, a way to obtain a loan. Lenders such as LogbookCalculator work by permitting the person who is taking the loan out to put up their car (or its logbook at least) against the loan. This enables the company to lend them money regardless of any problems they’ve had in the past.
Banks will always conduct a credit check on customers applying for loans. Logbook Loan Companies would use your vehicle as collateral, so if for any reason, you didn’t pay the loan back they could acquire your vehicle and sell it to re-coup funds. Please remember that this is a last resort option and it is never in the interest of the company to do this.
These sorts of loans are both highly accessible and flexible. They provide access to credit for a large group of people who would otherwise be denied and ignored by banks.
Provided you meet a few key standards, you should be able to get one without any problems. These loans can be utilized for any purpose you like from taking a holiday to consolidating some debts. Best Logbook Loan Companies will want to make certain that the vehicle is legally owned by you. The logbook should confirm this and it is also essential that you are over 18 years of age and a resident of the United Kingdom. Ideally, your vehicle should be under eight years old although certain lenders might be able to offer you some other forms of credit if your car is not under this age.
For the duration of the loan your vehicle logbook will be kept by the company. You will be able to use your vehicle as normal for the entire time you have the loan which is good news for people that rely on their car.
You should also be able to prove that you have some regular income. It’s unlikely that a logbook lender would lend to someone who is not able to repay the loan. In most cases, they require to see your P-60 document or would need to see evidence of pay checks.
You should think hard about your ability to repay the loan before getting one. The worst-case scenario is that you could lose your car although lenders will always try to work out a payment plan to avoid this. You could also speak to a trained financial advisor or direct any queries that you may have to a representative from the logbook lender who should be able to provide you with the answers you need.