If you are considering taking out a logbook loan then it would be wise to make sure you do your research . The problem with high interest, short, quick cash loans is that not only are you putting your car at risk but could possibly be putting your house at risk too. But if you were to fall back on one payment, it is very easy to spiral out of control from that one late payment. If you do owe money elsewhere and are pushing towards a logbook loan, to repay your loan elsewhere that you know you will be unable to pay too could be making things worse.
Some logbook loans company’s will try to help you come to an arrangement to help you pay your loan back as it works better for them, the longer you take to pay this back, means you are paying more interest. I once heard of a horror story involving a logbook loan agreement, which contained the provision that the lender could break the doors and windows and allow access on to the premises to where the vehicle was stored.
On the up side of things it is quick cash and if you have got the money to pay back the full loan including the interest within months then it is a good way to get access to quick cash. I cant stress enough to fish about as some lenders APR is as little as 178.0% and as high as 465.0% or even more. Also the value of your vehicle is determined by a loan officer or agent who inspects your vehicle. This is not by the market value, the decision will be made on the basis of this valuation.
When considering taking out a loan whether it is a logbook loan, a payday loan or any other loan, make sure to read all the terms and conditions carefully, and if there is anything you do not understand make sure to find out what it means as it could be very important and potentially cost you.
Here are some quick guidelines to what you may need in order to meet the criteria for a logbook loan. Check out what the chosen lender’s requirements are, as each lender may have a different criteria you will need to meet:
> The vehicle should be less than 10 years old, unless it is a prestige car with some value to it.
> You must be able to show a regular income, self employed people are also considered.
> You will need to have the vehicle insured and have a full valid MOT certificate.
>The vehicle must have little or no finance to be accepted for a logbook loan.
> The logbook must be in the name of the person who is wanting to take out a loan.