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Logbook Loans - For And Against
Logbook loans ... are they good or bad?
There's positives and negatives - on the plus side they're easy and fast and eligibility criteria is incredibly open and flexible ... but this comes at a cost!
They can be very expensive and very risky and require the security of a vehicle which is at risk if repayments are not maintained. |
Logbook Loans ... on the plus side:
- Available regardless of credit history or rating - even CCJs, credit problems and previous loan application rejections are often OK
- Confidential applications
- Application process fast and simple
- No credit checks
- Loans available FAST - often the same day
- Loans can be paid out in cash
Logbook Loans ... on the negative side:
- You must be the legal owner of a vehicle meeting the required criteria and free from finance
- Whilst you can continue to use the vehicle the logbook is signed over as security against the loan
- Your vehicle may be sold to settle outstanding loan if you default on payments
- Interest rates can be very high and loans therefore may be VERY expensive
- Logbook Loans lenders not regulated by Financial Services Authority (FSA)
Remember that all logbook loans are secured on your vehicle and a failure to make repayments could see your vehicle sold to settle outstanding balances.
The nature of a Logbook Loan is often of particular attraction to those with a bad credit history, those in debt and those in financial difficulty and needing a loan quickly but struggling to find a lender willing to help - THINK CAREFULLY AND SEEK INDEPENDENT ADVICE FIRST - there may be a much better alternative or a much better solution.
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