In hard times such as those that we now find ourselves more people will inevitably turn to fast credit products to get the cash they need when they run short. Payday advances have traditionally been the loan of choice for people with a bad credit rating who wanted to get their hands on cash quickly without being asked too many questions.
These days more individuals are starting to use log book loans as another option to improve their cash situation because of various advantages they offer over other products.
A log book loan is similar to a payday advance in the sense that they are very quick to secure and you are likely to be accepted regardless of you credit history. All you need is a car to use as security for your loan and to prove that you will have the ability to repay your debt on time.
The advantages that a loan for log book has over many other short term credit products is that you can take them out for longer periods and much larger sums of cash are on tap. A normal repayment period can be up to 18 months and the amount of cash available to you will only be restricted by the value of the car that you are using to secure the loan.
Who can apply for Log Book Loans?
To be approved you need to meet a few criteria.
1. You need to own the car that you are using for collateral and be in possession of the log book.
2. The vehicle should be less than 8 years old.
3. Car should be taxed, have an MOT and be insured.
4. You should be employed so that you have the ability to repay the debt.
5. Any finance on the vehicle should have been totally or almost paid off.
How do I apply?
You can apply for a loan either online or at a loans company's local office. When you apply online you can see if you will get approved before going down to the lender's office to show them your car and relevant documents. With the time it takes to fill in the forms, get down to show your car then get your money you are only talking about a few hours start to finish so this really is a handy product in times of emergency.
Disadvantages to the Log Book Loan
This product may sound like the answer to all your prayers but you have to remember a couple of things before you make use of them.
1. The interest rates charged on them is extremely high so the amount you repay will be much higher than the amount you borrow.
2. If you don't keep up with repayments you could lose your car.
Keep these negative consequences in mind when considering whether or not to use a log book loan and remember that they are only intended for use in financial emergencies.