Author Topic: Using your vehicle log book to get a loan  (Read 1923 times)

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Using your vehicle log book to get a loan
« on: March 24, 2012, 09:21:21 AM »
Bad credit rating could affect anyone in a variety of ways. You can't get a mobile contract; you can't open a bank account and the list of cant-do's keep extending more and more. But there are lots of cases when people with bad credit need loans urgently. They can't approach banks for the loans and so they seek other methods of securing loans. One such method is a logbook loan or they are also known as a v5 loan. It is a term generally used in the UK where a person submits the logbook of the vehicle that he uses, which is actually the vehicle registration certificate, and is return the lender gives him a loan that is proportionate to the current sale price of the vehicle. Logbook loans are very easy to secure as very little verification is done and the loan is also handed over very quickly.Need Cash Now

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In case the debtor is not able to repay the loan, the lender has the right to take possession of the vehicle without any court order. The logbook loans have a rate of interest that is usually higher than those charged by other lenders. One of the reasons is due to the fact that a lot of risk is present for the lender, as no or very little verification is done. Also, the number of defaulters is also high in this type of loans and due to these factors and the associated costs involved, logbook loans have a higher rate of interest.

These types of loans are usually taken by people who need cash in an emergency but have a bad credit and so cannot seek any other loan at that point of time. As with any short term loans, logbook loans also have their share of critics but these serve an underserved market and so they continue to thrive.

Log book loans should only be used as a last resort due to the extremly high intrest rates the log book loan lenders charge, and if you default you will loose your veichle.

There are a few different log book loan provider comapnies about so it is best to shop around if you do decide a log book loan ios best for you.Need Cash Now