How Logbook Loans Work

If you're not a home owner but you own your car and it's free of any financing, a good option to consider is getting a logbook loan for quick cash. Whether you need the money for emergencies, tuition, home repair, car purchase or any other personal expense, a logbook loan is good bet not to mention a convenient choice.
But how does logbook loans really work?
When you decide that a logbook loan is the ideal solution for your money problems, you'll need to find a lender who offers said financial product. The lender will ask you to hand over your V5 or logbook document in exchange for the money.
After which, you'll be required to sign a credit agreement which is essentially a "bill of sale" that hands over temporary ownership to the lender. This means that if you fall behind with monthly repayments, you put your vehicle in danger of repossession. Though this is the last resort and the "bill of sale" has been questioned repeatedly, there are still regions in UK who recognize the document.
In the event that you fail to make repayments or you default on your loan, the lender has the right to repossess the car even without a court order as long as it is registered with the High Court. After repossession, lenders often contact borrowers giving them a chance to settle the debt including the repossession fees. If you aren't able to settle the debt at this point, the next step is for lenders to sell the car to cover for your outstanding balance.
With logbook loans, the loan amount varies from as small as £500 to as much as £50,000 at an average APR of about 400%. As for the loan term, the typical length is 78 weeks but many lenders now allow up to 3 years. You can set both the amount and term just as long as you stay within the 50% standard that is up to 50% of the value of your car.
Once approved for a logbook loan, you will be paid by check which usually clears after a few days. Fortunately, some online companies are now offering quick cash and same-day approval services without upfront fees. Either way, logbook loans are convenient enough for people who need funding immediately. It is also an ideal option for people with bad credit history since some lenders do not conduct credit checks anymore. As long as you own your car and meet the other requirement, you are good as approved.
Do you still need more information about how logbook loans work? If you do, head over to Money Advice Service at https://www.moneyadviceservice.org.uk/en/articles/logbook-loans. 

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