Instances in which your logbook loan might not be approved
As humans, we feel incredibly bad when our efforts to apply and get approved for something comes to naught. When we make an application be it for a loan, a mobile phone contract or any other thing you can think of, our objective and belief is that we shall be approved for it. However, to have this belief is wishful thinking as reality has many surprises in store for you. Look around and you will agree with me that logbook loans have become very popular since the very first time they were introduced in the UK market. The allure of logbook loans stems from the fact that applicants can apply without having to worry about their credit score.
In fact, the requirements for this type of loan is quite simple and basic. One needs to legally own a car, be a citizen and residence of the larger UK and be above the age of 18 years. In essence, regardless of the status of your credit score, approval is almost always guaranteed. However, it’s imperative to note that there are instances where a person’s application for a logbook loan might be declined.
Using a car that is not yours as collateral
As you already know, you are supposed to use a car that is legally registered in your name as collateral. As such, if you set out to apply for a logbook loan using a car that is not legally yours, the result would be that your logbook loan will be rejected.
Using a car that has financial attachment as collateral
The rules are very clear that the car you should use as collateral for a logbook loan shouldn’t have any kind of financial attachment to it. As such, if you have used as collateral in the recent past and therefore has financial attachment, your lender might not be willing to accept as collateral and therefore your logbook loan application will be rejected.
If the car you intend to use as collateral is in bad condition
UK logbook loan lenders only accept cars that are in good condition as collateral. In fact, this is the reason why one of the basic rules is that your car should not have been in use for more than 10 years. It is also the very reason why you are required to provide a ministry of transport certificate before your application can be processed.
Errors in your application
If your application contains certain errors of omission and commission, your application will not be approved. For instance, if your name is spelt incorrectly or you omit important information, your lender will have no choice but to reject your application.
Not a citizen or resident of the UK
Your application cannot be approved if you are not a citizen of the UK. The same applies if you do not reside or have no proof of residence. The requirements are very clear that you need to be a citizen of the larger United Kingdom and that you must be residing in the UK.