The Typical Logbook Loan Application Process A logbook loan is often described as a guaranteed loan with no credit checks - it can give access to a cash loan regardless of your credit, your history or past, regardless of your status and regardless of any CCJs or black marks against your name and regardless of any previous application rejections.   Fit the criteria and the loan is yours and fast - often within 24 hours or even same day in some cases.

 

So just what is the application process?

 

Fit the criteria for a logbook loan you're able to start the application process which is usually pretty straightforward and very fast - a typical application is in four stages:

 

1: Fill in the official application form - usually online. A typical logbook loans application form requires information about you - all the usual stuff ... name, address, telephone, email address etc plus you will be asked approximately how much you want to borrow. You'll then be asked for basic details about your car or vehicle - things such as make, model, registration number, age, approx value plus you will be required to confirm that it's clear or nearly clear of any finance. Finally, you'll often be asked if it's OK to call you back and when you'd like the call. In some cases it may be possible to initially by-pass this by telephoning or requesting a call back.

 

2: You'll then get to speak to someone, usually over the phone, who will discuss your application, provide you with a full quotation and make the loan offer. At this stage the quotation is free and you will be under no obligation but it will enable you to confirm eligibility, find out the options and cost that will help you decide if it's right for you.

 

3: THINK LONG AND HARD ... MAKE SURE IT'S RIGHT FOR YOU, MAKE SURE YOU UNDERSTAND THE TERMS, THE COST AND THE RISK

 

4: Decide to progress and you'll be required to meet the lender - this will usually be at a local branch which you will be directed to and shouldn't be too far away. Your logbook loans provider will explain what you will need to bring but will often be such things as:

• The car of vehicle to be used as security
• The V5 logbook ... obviously most important!
• The MOT Certificate (if appropriate)
• The Insurance Certificate
• Evidence of identity (passport, driving licence etc)
• Evidence of income and expenditure to ensure the loan is affordable (bank statement, wage slips etc)
• A couple of recent letters or utility bills addressed to you at your current address

If all the above is in order there's normally no need for a credit check of any description - if you're happy with the offer and terms then you're ready to receive the loan.

 

5: Receive your loan ... simply leave the logbook with the lender and walk away with the loan which is often paid by cheque or even cash and in many cases there and then.

 

Ensure you only deal with a reputable company - any such company will be happy to answer any questions and is required to provide a full and clear explanation of the working of a logbook loan and will provide a specific quotation and ensure that you are able to afford the repayments. Any lender should have a consumer credit licence and be fully compliant with the Consumer Credit Act but logbook loans providers are not regulated by the Financial Services Authority (FSA) and hence not obliged to conform to the FSA fair customer treatment guidelines

 

The whole process can be quick - initial application to receipt of the loan can be within 24 hours and often the same day.