What Is a Logbook Loan

Wikipedia states that a logbook loan is a bill of sale using a debtor's vehicle to secure a loan (with the lender keeping the vehicle's "logbook", also known as the vehicle registration certificate).” Basically, it is when you put up your car for collateral to get a cash loan. They are primarily used when a person wants to take out a loan but does not want to go through a credit check. Logbook loans are generally given to anyone who has a clear logbook. This means that there are no financial obligations attached to the vehicle, such as taxes or insurance owed. If either of these things are unpaid, they will have to be paid before a logbook loan will be extended to the owner.

In addition to having no current financing on it, the vehicle must also be registered under the name of the person who is taking out the loan, it cannot be someone else's vehicle. It must also stay under this person's name throughout the duration of the loan, meaning you cannot sell the car without first paying off the loan.

The age of the car you can use for a collateral will vary, but generally it is around 10 years old. Different lenders will have different guidelines, so you will have to speak with them to see if your car is eligible. In addition, you must also keep your car in good condition throughout the loan. To ensure this, lenders will often require a valid MOT sticker to make sure your car is in good condition.

Besides keeping the car in good shape, the owner will also have to continue paying all taxes and insurance on the car throughout the loan. It will also need to have a valid license along with insurance. Any road taxes must also be paid by the owner during this time.

Lastly, lenders will make sure that you are able to pay back the loan. This means they want to make sure you have a steady stream of income. You will have to provide some sort of proof of this, usually in the form of a pay-stub or bank statement. If you meet the requirements, the lender will work with you to make sure a repayment schedule is made that suits your current situation.

If you are in need of cash quickly and don't want or can't go through with a credit check, logbook loans are a great way to securely and confidentially get the money you need. If you can fulfill the above requirements, you can use our website to compare different lenders who can offer you a logbook loan. We'll present you with plenty of options for lenders so that you can get the best deal. There aren't many options out there when it comes to getting a loan when you have bad credit, and this is where logbook loans come in.