Bad credit logbook loan applications in the UK

Plenty of applicants with a bad credit history face several difficulties when they apply for a car loan. The traditional banks conduct credit checks on all their applicants and reject any application that does not have acceptable scores.

This may be a little frustrating for borrowers. An option to consider for bad credit borrowers today is car logbook loan.

What are these loans?

Any car owner would have a car logbook which would be a mandatory registration document that would be provided to the owner of the car upon purchase. Anyone who plans to sell a car in the country would be required to have the logbook.

Car logbook loans are loans that are secured against the logbook of your car. Basically, this is a type of secured loan where the lender would keep the logbook of your car until the loan is repaid in full.

Borrowers should know that these loans are quite different than the pawnbrokers since you would be able to retain your car and use it normally. If, for any reason, the loan is not repaid by the borrower, the logbook would be used by the lender to seize the car and recoup the owed money by selling it off.

 A good option for bad credit borrowers

Car logbook loans are currently very popular in UK with bad credit borrowers who are unable to get an approval for the standard loan products because of their credit history.

At the time of signing the agreement of the loan, the logbook would have to be handed over to the lender. There are several companies in UK that currently offer these loans like Logbook Loans, MM Limited, Five Loans and Easy Money. There are also several brokers and online broking companies that specialize in these loans.

Like any other type of loan, it would be very important for the borrower to shop around and check all the options that they have to get the best possible deal.

Since all companies would have different interest rates, it would be very important for you to check all the terms and conditions and the interest rates before signing the agreement and committing yourself to any loan product.