When we face some monetary limitations at some point and require some urgent cash, loans come in handy because they are the fastest and least complex way of raising cash. Sadly, it is evident that the worse your circumstances are, the more restricted your choices will be. Lending sources will most likely turn their backs on you if your financial situation is not pleasant. However, don’t worry if you are having a difficult time outsourcing cash from traditional banks. Logbook loans are becoming a widespread choice. Here is a list of all the reasons that show why a logbook loan lender will automatically accept you even if you are unemployed. But first, it is important to understand what a logbook loan is all about.
What a logbook loan entails.
Logbook loans are your best shot when you are unemployed because they overlook your credit history. As long as you are a legal owner of a vehicle, then you will qualify for such a loan. This is regardless of whether you are unemployed, have had past credit problems or have CCJs. Of course you will have to prove that you can afford to pay back the full amount you borrow. Being a form of secured lending, you will have to use your car as security against the amount of money you wish to borrow. The good thing with this kind of loaning though is that you still get to keep your car and use for your normal day to day errands. The only thing the lender will take from you is the V5 document which they will keep for the entire loan period. Remember, this document makes the lender legal owner of your vehicle. So keep up with your payments if you do not want to lose your motor vehicle.
It will benefit you not to limit your options by doing thorough research. Compare as many lenders as possible until you are able to find one who will best suit your needs. There are many comparison sites that will help you make the right choice with just a few strokes. For instance, you could visit justlogbookloan http://www.justlogbookloan.uk for great information and assistance.
Logbook loans for bad credit
Just as the name suggests, logbook loans are also meant for people with bad credit. This is because it is a form of secured lending where your security overpowers your credit history. The good thing about this type of lending is that the lender will not have any interest in your credit score, rather they will be more interested in your V5 document. However, you will be required to provide proof of income and identity. You’ll also have to show that you can afford the loan and will pay it back comfortably. Once you do these things you can be assured of approval by any logbook loan lender.
No credit checks
With a logbook loan, you can easily bypass a credit check. This is because it is a secured form of lending that has a guarantee for the lender. After all, if you do not pay up, the logbook loan provider can confiscate your vehicle and resell it to cover the remaining amount. That’s why you need to be careful with these loans. It’s also for this very reason that you should not worry if being unemployed has messed up you credit records. Even if you have no credit at all, you can still be eligible for a logbook loan.
In conclusion, a logbook loan is your best shot when you need quick cash. The most important thing you need is to be legal owner of a car and residence of the UK whose 18 years and above.