Finding yourself in a situation where you need credit quickly is not so uncommon these days. There could be a wide range of reasons as to why you may require a loan quickly; these reasons could range from being made unemployed, a sudden personal crisis, unexpected bills to be paid or simply an inability to cope with the cost of living.
It may also surprise you to hear that a recent survey by NS&I showed that around 23 per cent of British people were not saving anything at all from their monthly pay check. This could indicate that the cost of living has increased to a level where people are simply unable to save money for the future – or that people’s desire for luxury items is so great that they would rather spend money than save it.
Whatever the reason you need a loan quickly for, in today’s marketplace there are a range of financial products out there available to people who need credit quickly ranging from credit cards to logbook loans.
Individuals who have a bad credit rating will find they have fewer choices in terms of getting a loan. This is due to the fact that during the loan application process for the majority of loans, a credit record check is run to ensure that the person is a suitable individual to lend money to.
If you have applied for loans at mainstream sources such as banks and loan companies, you may be asking yourself – how on earth did I get a bad credit rating? A bad credit rating can stem from various financial no-no’s which include failure to repay bills on time, making late payments on loans and County Court Judgments against you. Having these sorts of things occur may well result in a terrible credit rating meaning that normal lenders will simply not want to lend money to you as you will be deemed a high-risk borrower. The risk of lending money to you outweighs the benefit to the lender.
In addition to the above points, recent restructuring of the way banks lend money to people has resulted in tighter lending criteria which effectively makes it tougher to get a loan. The banks will only lend to people who they firmly believe have the ability to make repayments.
Logbook loans are loans for people with bad credit. These loans differ greatly from mainstream lending options in a number of key ways.
A logbook loan lender will be interested in your ability to repay the loan at this point in time only. For this reason the lender will not conduct a credit check on you, meaning, if you have a bad credit history the lender will not be concerned about this. This is due to the fact that logbook loans are based around the idea of using your vehicle to secure the loan – not the reliability or previous borrowing history of the individual.
The individual taking out the loan will provide the V5c document to the logbook loan lender who will keep this document for the duration of the loan. In effect, the lender will take ownership of the vehicle leaving the individual free to use the vehicle just as before with no restrictions placed on usage.
The other big benefit of these loans is the speed at which they can be obtained. This is a big advantage for those who have become frustrated by regular lenders or those who simply need a loan quickly. Making a quick, straightforward application online is the first step, usually a call with the lender and a meeting to confirm the requirements and value of the vehicle will follow. All in all, logbook loans can often be active within 24 hours.
The qualification criteria around these loans will also likely please you. Most logbook loan lenders work around a very straightforward lending criteria, which typically means that the vehicle must be owned by you and free of any credit agreements, you must be 18+ and the vehicle should be of a reasonable value. Those who are self-employed, tenants and living with parents are also accepted.
The duration of the repayment plan will vary between companies, so, it is best to confirm with the company prior to this. The repayment terms and conditions will be explained to you in detail so that you are aware of how much to repay each month.