subject: Top Reasons Why People Get Logbook Loans [print this page] Top Reasons Why People Get Logbook Loans Top Reasons Why People Get Logbook Loans
Logbook loans are a form of borrowing that has become popular in the past few years. With many individuals struggling to acquire credit from traditional lenders they provide a great opportunity for almost anyone who owns a car to get access to the money tied up in it.
Before looking at the main reasons why people choose to get a logbook loan it is worth explaining a few basic points about them. A logbook loan is a loan whereby you use your vehicle as collateral for the loan. You will keep your vehicle and continue you driving it as normal but you will borrow money against the value of it. The logbook loan lender will value your vehicle and you will be able to borrow an amount from 500 to 50,000.
Applying online is the most popular way to get a logbook loan. Once you have applied the lender will take a look at your application and then an advisor will contact you to clarify the finer points. They will then be able to offer you a loan and will retain the vehicles V5 registration (or logbook) for the duration of the loan.
One of the main reasons why people decide to get a logbook loan is because they have a poor credit rating. This could be down to a number of things but it usually means that they have repeatedly failed to re-pay debts and credit cards, have gone bankrupt at some point or have been taken to court for failure to pay money.
No credit check loans. Logbook loans are no credit check loans making them a suitable choice for people who have a bad credit history. This makes them drastically different from banks and traditional financial institutions that will check your credit rating and offer you a loan based on this.
Any purpose loan. Logbook loans can be used for any purpose and the company provide them will not poke their nose into what you do with the money. Your obligations are simply to make sure that you can make repayments and to maintain your vehicle as normal. Clients use logbook loans for all manner of things from home improvements to debt repayments.
An alternative to payday loans. I'm sure you've heard and read about payday loans. Whilst these may sound similar to logbook loans they are a little different. For a start, they are unsecured which means the amount you can borrow will be a lot less than logbook loans. Why? Because the lender has nothing to secure the loan against they are unable to offer large amounts of money. In addition to this, you will often find payday loans will charge a much higher APR than logbook loans.
You can keep your asset while you have the loan. Logbook loans provide an easy route to money without losing possession of your vehicle you're not selling or leasing your car, you keep it while the loan is active.
Loan in 24 hours? One of the other main reasons why people chose logbook loans is because they provide fast access to the money they need. This differs from traditional bank loans which can sometimes take a few weeks to get to your account. Logbook loans can often be approved in a week or sometimes a few days.
For further details and insight into logbook loans check out an appropriate site which should be able to help you out.
