Logbook loans are now regarded as one of the most popular ways for consumers with a bad credit history to get a loan. The logbook and payday loan industries have seen an explosion in growth during the past couple of years for a number of reasons.
The main reason for this growth is probably due to the fact that the banks have become a lot more careful who they lend to. During the late 90´s up until about 2008 the bank lending criteria for many types of credit were very loose. This meant that for most people it was easy to get a loan, credit card or mortgage.
The problem with this sort of lending was that many of the people were unable to repay the money borrowed and debt from credit cards and loans built up. This meant that many people found themselves in a difficult situation financially and may have had problems with repaying debts on time resulting in a bad credit rating.
In most cases, those seeking logbook loans will have a bad credit rating. There are, however, other reasons for seeking logbook loans, including:
- Available Quickly:
Among the benefits of logbook loans is the fact that credit can be provided quickly. In many cases, traditional loans will require a somewhat lengthy process of approval and form-filling. Logbook loans will often enable the applicant the ability to get the loan very fast — often in 24 hours.
- Available to Tenants:
If you are renting then you will be pleased to hear that logbook loans are available to tenants. You will not be required to own a property in order to be eligible for a logbook loan.
- Flexibility Around Usage:
With some loans, you will be required to specify what the loan is for or the lender may impose criteria on your terms of the use of the loan. Logbook loans are flexible loans, meaning they can be used for what you deem necessary — whether it be taking a holiday, home repairs or anything else for that matter.
- Straightforward Eligibility:
One of the key aspects of logbook loans is that the eligibility requirements are straightforward. Provided you are over 18, a UK resident and are shown as the legal owner of the vehicle, then you will meet most of the requirements. You must also be aware that your vehicle should be clear of any financial or high purchase agreements and you must be in possession of the V5 document. The majority of logbook lenders will request that the vehicle should be no older than 10 years.
- Apply From Home:
One of the great things about the internet is that it makes applications for things much easier. With a simple on-line form and by entering a few details you can be on your way to getting a logbook loan.
- Available to those with County Court Judgements:
Logbook lenders will not take into account your history of borrowing from other lenders. This makes them hugely popular with individuals who may have had issues with borrowing from Logbooklender.co.uk, bad debts or CCJs. These sorts of problems will not exclude you from having a logbook loan.
The above reasons shed some light on the principal reasons behind the growth of these loans.