Logbook Loans Information Library

LOGBOOK LOANS

What are Logbook loans? Find out all the info you need below!

What is a Logbook Loan?

Logbook loans are easy, fast cash loans for people who own- or partially own a vehicle (usually a car). Your car is used as collateral for the loan, so this is a secured loan.

Getting one is pretty easy – but remember that, as with all secured loans, if you can't repay the loan you risk losing your property (in this case, your car)!

How Much can I Borrow?

Because logbook loans are valued against your car, they generally have a higher borrowing amount than, say, a payday loan.

The amount varies but some providers offer as much as £50,000. This is great news for people who need the loan to pay for big purchases – perhaps a wedding or major home improvement.

The amount that the lender offers you will probably depend on the value of your car – the more it's worth, the more you can borrow.

Who can Apply?

Logbook loans are quite easy to be accepted for – most providers are not interested in your credit rating, because they know they have the security of your car to guarantee the loan. Here are some basic eligibility rules for logbook loans:

• Must be at least 18 years of age
• Must be the legal owner of your car (or other vehicle)
• Vehicle must no older than 8 years

Some lenders ask that you have a form of regular income and that the vehicle is worth at least £500. However, this doesn't apply to all lenders so check while you're browsing for a loan.

What is the Minimum and Maximum Term?

All lenders vary, but typically you can have the loan from as little as 1 week to as long as 78 weeks. Check the terms when you are on your loan search!

Will my Credit Rating be Affected?

When you apply for a logbook loan, the lender is unlikely to carry out a credit check – if they do, they would most likely state this in advance – but in most cases this is one of their selling points: get a good loan even if you have a poor credit rating, arrears, defaults or CCJs.

That said you will need to be able to pay your loan back in a timely manner in order to avoid your credit rating being affected as a result. This applies to any type of loan or credit – stick to your repayments and your credit rating should be OK.

In fact, if you are a 'well behaved' borrower then your credit rating might even start to improve. However, if you find that you are unable to meet repayments and are struggling, your rating could be damaged. Think about this before you apply for a loan to avoid any drawbacks. Consider whether you can really afford to take a loan and how you will afford the repayments.

How Do you Apply?

Start by finding a good lender – use Bad Credit Good Solution's dedicated comparison area for logbook loans for a quick-reference guide.

Have a look how much you can borrow and what the main terms are. Check the main pros and cons and once you have found the right one just click on the blue 'Apply' button. You are under no obligation yet – it is up to you to make the first move and fill out an application form.

The application process is all online – you could find out if you and your car are eligible within minutes! The decision is usually made in a very short space of time. You might need to provide details of a working bank account in order to receive your cash.

One of our listed companies even offers a 'drive through' service – just pop down to your nearest branch, hand over your car logbook and drive away with cash!

What are the Advantages of a Logbook Loan?

Logbook loans are great if you need fast access to cash and have the right type of vehicle to guarantee the loan.

Applying couldn't be easier and it is great news that a credit check is not a feature – borrow even if other lenders have turned you down. Here are the main advantages listed out:

• Easy to apply for
• Easy to get!
• No credit checks
• Wide range of loan amounts
• Wide range of terms (1 to 78 weeks)

Are there any Disadvantages?

There are disadvantages to taking any type of loan – and getting a logbook loan involves a fair amount of risk. Think about some of these main aspects:

• Could lose your Car
• Interest rates can be high
• Could end up with damaged credit rating

Before you take any type of loan, always remember to think about whether you'll really be able to afford to pay it back. A loan is great when it's fresh – all that money! – but repayments will start very soon and you will need to be able to meet them to avoid getting into further debt.