What Is The Quickest Way To Apply For a Logbook Loan?

May 3, 2012 by  Filed under: Loans 

Logbook loans have become increasingly popular within the current economic climate. Along with payday loans and same day loans, they provide people with a near-instant way of receiving a short term cash advance to help pay for things they desperately need. Whilst this used to be uncommon several years ago, more and more people are turning to logbook loans for that financial fix.

Logbook loans are slightly different from payday loans or same day loans in that you can borrow more money over a longer period of time. However, a word of caution, you should not get these confused with regular loans that you would apply for with banks and other financial institutions, as the rate of interest is significantly higher, and you have to secure the loan against an asset of yours such as your car, for example.

The amount that you can borrow is determined by the value of your asset, normally this would be your car, as mentioned. You can usually borrow up to 75% of the value of your car. Whether it’s to pay for bills, repairs, or something much larger like an extension to your home, logbook loans offer those who are unable get loans from banks the chance for this extra cash. However, as mentioned, because you are securing the loan against you car, it’s wise to try and pay off as much of the loan as you can as soon as possible, even if this means breaking the repayment down monthly, and ensuring that you never miss a monthly repayment.

In any case, the process of getting a logbook loan is a great deal quicker than using traditional lenders such as the banks. As well as being ideal for those with bad credit, or people who struggle with being approved loans for whatever reasons, they’re also ideal for people that desperately need a cash advance quickly, say within 24 hours; and thanks to the Internet and the proliferation of logbook lenders, this is more than achievable.

So, with this in mind, it’s fair to say that the quickest way of applying for a logbook loan is via websites. However, a second word of caution, you need to do a bit of research before using the first lender you come across online. Be sure to check their interest rates, and check for any hidden charges. Generally speaking, you want to use a lender that is completely transparent with their interest rates and how they do their business, as well as who their providers are (in the case you’re using a broker for example). Once you’ve done this, the rest of the process is fairly straightforward.

You’ll be required to complete an application form initially. This process takes a matter of minutes. Be sure to have information about your car to hand, as this can speed the process up. For example, you’ll be asked things like the make and model of your car, as well its year of registration and in some cases the mileage too. The application form can take about an hour to process. After this, you’ll be required to set up date and time in which to speak to the lender and hand over your logbook (V5) as well as show other documentation such as your insurance certificate and MOT.

Generally speaking, applying for a logbook loan can be just as quick as a payday loan or same day loan, however additional checks may slow the process down a little bit. The quickest way is to use an online provider, as the process can be incredibly smooth and straightforward, and you could have the cash in your account in less than 24 hours.

Vincent Rogers is a freelance writer who writes for a number of finance businesses. For Logbook Loans, he recommends Logbook UK.

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