What is a logbook loan?
This is a loan that is secured against your vehicle. If you are accepted for this type of loan you will not have to hand over your car to the lender. Instead, you will need to give them your vehicle’s logbook. You only run the risk of losing your car if you are not able to make the payments you have agreed to.
A logbook loan tends to give individuals the opportunity to borrow up to 70 percent of their car’s current worth.
However, this is dependent on the lender. Keeping that in mind, read on to discover more about car logbook loans and why they are a recommended solution for anyone who is in need of some extra cash…
As briefly touched upon in the introduction, one of the best things about going for this type of loan is the fact that it has:
No negative impact on your day-to-day life
As you get to keep your vehicle, you don’t have to worry about giving something important up in order to benefit from the money you desperately require.
Contrary to what a lot of people believe, your car is merely used as security, and therefore will not be taken off you if you make the payments.
In addition to this, car logbook loans are a good solution because a wide variety of individuals are considered. This does not mean everyone will be accepted. However, if you have a bad credit history or no credit history at all, you do not need to be worried about being rejected by all lenders.
There is a chance you will be accepted.
In general, you need to prove that:
- You are over the age of 18
- That the car in question is actually yours
- It’s paid for in full
In addition to this, it is extremely important that you prove you will be able to make the repayments. Thus, proof of income slips, or something similar, is extremely important.
Aside from the points that have already been mentioned, one of the reasons why car logbook loans are favored to other types of short term loans is because they offer a greater degree of flexibility.
Payday loans are the main rival to this type of loan
However, payday loans only tide people over for a few weeks and you are only allowed to borrow a minimal amount of money. You have a greater scope of flexibility with a logbook loan. You will be able to borrow more and you will often have up to 18 months to pay your loan back.
Pigly can help you to determine if this affordable and right for you, though, as this loan is not right for everyone.
It is not tough to see why car logbook loans are a popular option. They have received a wealth of positive feedback and this is because they are flexible, provide a solution a lot of different people can take advantage of and you still get to keep a hold of your car.