Dispelling myths associated with logbook loans
Logbook loans have enjoyed immense popularity since the very first time they were unveiled in the UK market. This popularity however has been laden with misinformation and fallacies regarding logbook loans. Every time a person seeks to apply for a logbook loan, they are met with a myriad of reasons or excuses as to why application for a logbook loan should be the last thing on their list. We are therefore going to dispel a number of myths associated with logbook loans.
Myth #1: if you have a history of defaults, you should not apply for logbook loans
This is a lie and a fallacy of the highest caliber. You can apply and get approved for a logbook loan even if you have a history of CCJ. The assumption therefore that logbook loans are not for UK individuals with a history of defaults is a lie. In any case, what is required from you is that you have a car that is in good condition as collateral provide proof of address, income as well as be over the age of 18 years. There are a myriad of UK logbook loan lenders willing and more than ready to approve your logbook loan application even if you have a history of CCJ.
Myth #2: getting approved for a logbook loan is a complicated and cumbersome process
This is a myth that has been perpetuated by the opponents of logbook loans. If any, applying for a personal loan from a bank and getting approved takes a much longer period than applying for a logbook loan. In fact, logbook loan lenders don’t ask for a lot of requirements and neither does it require a lot of paper work. You can apply for a logbook loan online within minutes and get approved within hours. The process is therefore pretty simple and straightforward.
Myth #3: your boss will be consulted
The number one reason many would be logbook loan applicants stay away from logbook loans is because of the false sense that their employers will be notified or consulted as proof that they work there before the loan can be processed. This couldn’t be further from the truth as provision of pay slip as well as bank statement is all that logbook loan lenders require from you. Even if your employer might be contacted to provide certain information, a good number of lenders seek for your express approval first before they can go ahead.
Myth #4: your vehicle won’t be suitable to be used as collateral
The truth of the matter is that different UK lenders have different policies as regards the car that should be used as collateral. What all can agree on is that your car needs to be at least 10 years old and should have no financial attachment to it. The truth of the matter is that different lenders have different requirements and there are also those that accept vintage cars that have been in use for more than 10 years and in good condition. It is therefore important that you compare UK lenders before making the ultimate decision.