Are Logbook loans the way out for people with a poor credit rating?
Inability to avail a loan when one urgently needs it is something that has been the cause of untold suffering and immense stress among individuals with a poor credit rating. From time immemorial, UK citizens with a poor credit score have been on the receiving end of one rejection after the other. They have had to contend with being told that they are not suitable to avail a loan simply because their credit score is wanting. The resultant effect has been a section of UK individuals feeling dejected and discriminated upon. In fact, many felt like they were treated like second class citizens simply because of the different ways in which they were treated when seeking to avail a loan or a mobile phone contract.
Luckily enough, the terrain has greatly changed and now there are a number of lenders willing to avail a loan without taking a person’s credit score into consideration. If you live in the UK and have been facing trouble availing a loan simply because your credit score is below average, you can apply now for a logbook loan from one of the many lenders strewn all over the UK. From the very sound of the name, these are loans where a car’s logbook is used as collateral in return for the amount of money you wish to be advanced. UK logbook loan lenders ordinarily don’t use a person’s credit score as a determinant on approval or rejection of an application.
Logbook loans are indeed the perfect way for people with a poor credit rating to avail a loan without stressing over how bad their credit score is. The fact that the requirements are simple and basic are the reasons why logbook loans have become very popular in the UK. As a matter of fact, so long as a person has attained the age of 18 years, legally owns a car and can provide proof of employment, they can go ahead and apply for a logbook loan.
The unvailing of logbook loans in the UK a few years back was met with a lot of pomp and fanfare. UK individuals with a less than stellar credit score could now avail a loan without having to worry of what impact their credit score will have on their application. They could also avail cash loan up to 70% current value of their vehicle which was indeed a great alternative to payday loans that only availed a small short term loan. As regards the benefits of logbook loans, applicants do not have to worry about the status of their credit rating. Secondly, one continues to make use of their car as they furnish their loans. Thirdly, the period of repayment is up to 78 weeks which gives an applicant flexibility to make repayments without feeling as if they have been stretched financially.
On the downside however is the fact that logbook loans attract high interest rates which means that an applicant could end up repaying more than twice the principle amount. Secondly, there is also the risk of vehicle repossession should a person be unable to make repayments for their loans. That notwithstanding, we can state without any fear of contradiction that logbook loans have become the way out for people with a poor credit rating and history of defaults. They can always rely on logbook loan lenders to boost them financially whenever they are stretched and in need of an urgent loan!