There are many different types of loans available to people who live in the UK. Logbook loans are a type which might be new to a lot of people, but they are growing in popularity. With money tight for a lot of people then loans can be a way that they will be able to get through these tough times.
A logbook loan is one where a vehicle is used as collateral. This means that anyone that owns a vehicle may possibly take one out.
If there is already credit on the vehicle then this could stop any other loans being able to be taken, but it does depend on how much of the loan is outstanding, so it can be worth investigating the possibility anyway.
Because the logbook loan uses the vehicle as collateral then it is possible to have one even if you have a bad credit record. This may not always be the case, but depend on how much risk the lender is prepared to take. They will want to have a look at your vehicle so they can access how much it is worth and will then release some cash to you. You will often have the choice of making monthly or weekly repayments, so it is flexible to suit you.
You may be able to borrow more money than you can with other types of loans which can be a big help. You may also find that the rates are more competitive, but check carefully to see. It can be worth comparing different companies to see which offer the best looking rates. Remember to also check what fees and charges they have, for setting up and if you want to repay it early as well as if you cannot make a payment. These can vary a lot between the different companies and so can make a big difference to the overall cost.
It is also worth making sure that you use a company that you trust. Read some reviews of various companies if you can and look at their website in detail to find out more about them. It can be worth phoning them as well to see whether you like their customer services as this could be something that you need to use in the future. Being happy with the company will allow you to be able to feel more relaxed at borrowing money from them.