Using Logbook Loans for Short Term Borrowing

In recent years the amount of individuals seeking short term loans has increased. As families feel more pressure due to the increasing cost of living this will, perhaps, come as no surprise to you.

There are various companies out there who provide products which cater for those who require a loan for a short period of time. The majority of these companies offer short term loans through the internet and provide payday loan services, which provide quick access to cash with very low lending criteria.

Payday loans and intended to work to bridge the gap if you run out of money before you next get paid. The typical amount that individuals borrow with a payday loan will vary between £100 and £500. The qualification criteria for these loans will usually involve the requirement of having a regular income and a bank account. Those with a bad credit rating can usually apply as most lenders do not run a credit check and those who are tenants are also accepted. It is not a requirement that you own a home.

The APR rate for these loans is often something which is discussed in the media and other sources. It is true that the rate of these loans is very high when compared with regular bank loans, but bear in mind that these loans are intend for very short term use – in most cases about one month.

You should also consider your ability to repay loans on time – especially payday loans as failure to do so could result in your costs spiralling out of control. Payday loans can be thought of as something you may use a few times in your life, but not every day.

Another option which has grown in popularity in the past few years are logbook loans. These loans secure a loan on the value of your vehicle and in most cases will provide you with a loan which of higher value than a payday loan. Logbook loans are short term bad credit loans.

While payday loans and logbook loans may sound similar, there are a few key differences which should be remembered. Because logbook loans effectively mean securing a loan on your car, the lender will assess your vehicle prior to providing you with the loan. During the logbook loan application process, the lender will want some information about your car – such as the age, mileage, make and model. This will give them an idea of the value of the loan that can be provided to you. Typically, a lender will be able provide you with a loan up to a certain amount of the value of your vehicle which they can often provide to you very quickly – within 24 hours in many cases.

As with payday loans, logbook loan lenders will not be running a credit record check on you. It is for this reason that logbook loans are a popular choice with those who have experienced problems in the past with borrowing and not repaying debts.

The specific criteria between the lenders will change somewhat, however, most of the time they will require that the vehicle is below ten years old, of reasonable value, free of credit agreements and legally owned by you.

Similar to payday loans, the loan provider leaves it up to the individual to decide to what they wish to spend the loan on. There are a huge variety of reasons for people wishing to take out logbook loans – maybe they have experienced some financial difficulty or an unexpected bill. Whatever the reason is, the lender will not impose any strong restrictions on usage.

The process of logbook loan application will usually begin with an online form filled out, followed with a call with an advisor. This will then lead to, in most cases, a meeting where the lender will assess the value of the vehicle and be able to provide you with an amount that they can lend to you. The lender will more than likely want to understand how you will repay the loan and could wish to see recent pay checks showing evidence that you are earning a regular income and therefore have the ability to repay the loan.