Are logbook loans primarily for individuals with bad credit?
Not exactly. When the idea of logbook loans were first mooted, the goal was to target individuals with bad credit or those who could not avail credit facilities because they had a history of arrears. However, the reality of the matter is that anybody can apply for a logbook loan if they so wish in as much as the biggest chunk of customers for logbook loans are those with a poor credit rating.
Do you offer logbook loans with outstanding finance?
One of the conditions we have prior to approving your loan application is that your car should be from any financial attachment. We would therefore be inclined to decline your application in this respect. That said, there are instances where we might still be able to provide logbook loans with outstanding finance especially if the outstanding debt on your vehicle is negligible.
What basic requirements do I have to meet in order to avail a logbook loan?
The beauty about our logbook loans is that the requirements are pretty simple and basic. For one, we insist that you must be a bonafide UK citizen who is of sound mind and above the age of 18 years. Secondly, you must be owning a car that you are willing to set up as collateral and be residing within the UK. So long as you meet the aforementioned, you are good to go.
Can I use a vintage car as collateral?
The rule of thumb is that the car you set up as collateral need to be a model that is not older than 10 years or rather has not been operating on the road for more than a decade. That said, there are instances where we consider classic and vintage cars especially if they are well maintained and in good condition.
Can I use my spouse’s car as collateral for my logbook loan?
Unfortunately, that is not possible. We need you to set up as collateral a car that is registered in your own name. You cannot transfer ownership of a car that you do not legally own to us. It will definitely create legal bottlenecks and would make it very difficult for us to enforce the contract we agreed upon should there be any problems.
I will be 18 years in a couple of days. Is it okay for me to apply for a logbook loan?
There are a number of things we consider before approving your application. One of the things is that you need to be an adult of sound mind not to mention show proof that you receive income on a regular basis. In essence, if you are yet to be 18 years, it will be impossible for us to consider you for a logbook loan as you are a minor. In fact, any agreements will not be enforced in any court of law not to mention that it’s illegal in the UK to enter into a contract with a minor.
How is the flexibility of the repayment?
It is actually up to you to decide how frequently you wish to be making repayments. You can decide to be making weekly repayments, biweekly repayments or even monthly repayments.
What is your preferred mode of making repayments?
While there are a number of ways you can make repayments for your logbook loan. We prefer you set up automatic deduction from your bank account. This makes it easier for you to be on top of repayments and drastically reduces chances of you defaulting.
Any risks related to defaults?
Of course there are! First and foremost, defaults negatively impact your credit score and inability to service your loan could see you losing your car. Please be advised that this is usually a measure of last resort!