Log book loans are a great way for people who need cash at quick notice to get their hands on it. Working in the same way as someone using their house to get a secured loan, a log book loan sees someone using their car as security – they need only to own it and for it to be free of any other finance.
While many car log book loans are initially for 18 months, companies are often happy to consider extending this, although in an act of responsibility, they encourage those who take out the loans to repay them as quickly as possible to encourage racking up any more debt than is absolutely necessary.
Some log book loan companies such as Auto Money, who are based in the UK, can process the loan payment in as little as 15 minutes, so here are some of the reasons that some people may wish to get in touch and organise one as quickly as possible.
Just about anyone can apply
Perhaps the main benefit of a log book loan compared to other same day cash loans is the fact that just about anyone can apply – even if they have a bad credit rating or have had credit problems in the past. If there is evidence that the person can afford the loan, there is a good chance their application will be successful. The only other criteria the person must meet are that they are 18 years of age, the legal owner of the vehicle, have made all repayments on any loans secured on the vehicle, be a UK resident, be able to provide all of the relevant documents (we will come onto these shortly) and have sufficient income available for repayments.
All you need is to have a Car
As long as someone has a car and can meet the requirements stipulated in the section above, there is a very good chance that their application for a log book loan will be a success. In terms of the relevant documents that need to be provided, these are: the car’s logbook (V5) which must be in the applicant’s name; proof of income, such as a recent payslip, tax return or bank statement; a recent utility bill; and some form of ID with a photograph on it, for example a driving license or passport.
Happy to work with a customer who is having trouble keeping up with payments Companies such as Auto Money really do their best to help the customers and applicants. They understand that some clients may have trouble in keeping up with their payments and will fall behind, and so will work alongside them to ensure that a solution can be found. Repossession is a last resort, but must be considered if the client is making no effort to pay back what was borrowed.
These are just a few examples of how a log book loan can be a great option for some people instead of other ways of getting same day cash loans. Car log book borrowing can be a more responsible way of doing it, both from the business’ and the client’s point of view.
This article looks at car log book loans, a more responsible option compared to other same day cash loans that sees a person’s car used as security against the loan in the same way a house is used as security for a secured loan.