Are you short of cash? Or is there an emergency that needs immediate payment? If you are shy to borrow money from your relatives or friends, you can always rely on taking a loan. There are thousands of lenders in the UK that offer different types of loans, and you can choose which one suits best for your situation and need. If you own a car or any vehicle, then, you can quickly get the funds that you badly need. Visit the nearest logbook lender, and he will be happy to lend you money with your vehicle as collateral.
When you apply for a logbook loan, the lender will ask for the registration of your vehicle as collateral. The registration document is proof that you own the car, with the understanding that if you cannot repay the loan in full on the date that you and the lender stipulated in the loan contract, the lender can sell your vehicle to get payment for the loan. To prevent losing your car, make sure to take out a loan that you can pay back quickly. The term of a logbook loan is usually from six months to 36 months. You can opt for a 36-month repayment plan so that you will have plenty of time to settle your debt. Spreading into 36 months, the total amount that you have to pay back will result in affordable monthly amortisation. Here are some reasons why many UK residents opt to take a logbook loan:
Almost all people in the UK own a car or other types of vehicle. If one owns a car, he can take a loan quickly. Your vehicle serves as a guarantor for the loan, and it is far easier than asking a relative or friend to back up a loan. You do not have to plead for help because you can do whatever you want with your car.
No Credit Score Required
Most lenders refer to the records of a credit reference agency to check your credit rating or score. Your score will show whether you are worthy enough to get the loan. If you have a low credit score, lending companies and financing institutions consider it risky to give you a loan. It is sad to note that most UK residents have low credit scores or do not have any credit history at all. However, because you have secured your logbook loan with your car, the lending company would not require a good credit score. They can quickly sell your car if you cannot pay back your loan.
You Continue Using Your Car
You can still drive your car even if you have borrowed against it. The lender will only keep the vehicle registration. In case you pail to pay back what you borrowed against your car, the lender can quickly sell the vehicle because he has the document, which serves as proof of ownership. Even if you have borrowed funds against your car, you can continue driving it.
You Can Repay the Loan Early
Many logbook lenders agree to let you repay your loan early. Even if you opted for a 36-month repayment period, you could pay back what you owed after six months or 12 months. However, if you are looking forward to early repayment, find a lender that will not charge you an early repayment fee.
Once you have presented the registration of your vehicle and signed the loan contract, the lending company will release the funds immediately. You do not have to wait for several days or weeks to get the funds for an emergency.