You will agree with me that if you have bad credit and have literally been turned away on numerous occasions every time you sought for a loan from mainstream banks, chances are that you are bound to be hasty when making financial decisions especially where credit checks are not an issue. Most individuals with bad credit have found themselves in unfamiliar territories when they haphazardly agreed to a contract without understanding how the said contract will affect them. Essentially, this desperation from bad credit individuals is what unscrupulous logbook loan lenders take advantage of to swindle individuals and ensure that they are forever indebted to them.
Applying for a logbook loan should be something that is well thought out, informed and not done in a haste. It is imperative that you take measures to understand how the terms and conditions of the loan will affect you prior to signing on the dotted line. That said, how can you improve your chances of getting approved for a logbook loan? No doubt, the belief is that since credit checks are not an issue, getting approved is assured. Well, this is not is always the case as approval is premised on a number of factors.
For one, to improve your chances of approval, ensure that you are of age, reside within the UK, receive salary on a regular basis or rather show proof that you can service your loan and maintain your car on a regular basis. While this is essentially what many logbook loan lenders insist on, the truth of the matter is that it’s not enough to secure you a logbook loan. In addition to a car that is in good condition, the tax and insurance details of the car must be in order. What this simply means is that even if you meet the eligibility requirements and your car insurance and tax details are not in order, then you can forget about being approved.
Secondly, you need to have a Ministry of transport (MOT) certificate that essentially shows that your car is road worthy. The car must also not be older than 10 years old. Therefore, if you are keen on getting approved at the first go, it’s imperative that you ensure all the above are in order as lack of one or two could see your application rejected.
Now that we’ve looked at how you can ensure you get approved for a logbook loan, let’s take a look at how to reduce chances of your car being repossessed. No doubt, the fool proof way of ensuring that your car is not repossessed is by being prompt in payment. In other words, you should be on top of your repayments and not default. However, we both know that things happen and at times we are forced to default. When this happens, it is imperative that you don’t go under or cut communications with your lender.
Most logbook loan lenders resort to car repossession due to lack of communication or because the borrower simply goes mute and doesn’t respond to communication on why they have fallen behind. If you experience financial problems, approach the lender and explain why that is the case. Try to make them understand and if your lender is understanding, there is a high probability that they will work out something with you rather than resort to repossessing your car.
In conclusion, logbook loans if utilised are a great way to resolve your financial issues when you are between a rock and hard place. Consequently, if utilised badly, they could make your financial situation worse than it was before you took out one. Always make an informed decision and only borrow what you can afford to repay!