Sometimes unexpected events just come up and leave you in need of a quick short term loan. Sometimes you are left stranded wondering where you are going to get a hold of the cash you need. This is even more difficult if you are thinking of taking a short term loan but you have a bad credit rating. Luckily there are a lot of financial institutions out there with varying terms and conditions and options. One of those options is taking a logbook loan.
While doing so, all you will be required to do is walk into one of the branches of your logbook loan provider and hand in your V5 document. Once approved the money is disbursed within a very short time and the whole process is quick and easy. You can borrow as much as you need and many times you will be able to repay the loan within a month or two.
If during such an unexpected event you do decide that the best option for you is to take a logbook loan, you should know that the amount you are eligible for is to a large extent dependent upon the value of your vehicle. It is important therefore in order to secure the best possible deal for yourself, to be able to maintain your car in the best condition. Let’s now look at how you can do this:
- Always keep the car well serviced and repaired. A car that has a lot of broken parts and is not in top form will not attract a good price when you are trying to sell it and that goes the same way when it comes to securing a logbook loan. Always carry out regular maintenance that way when submitting your application for a logbook loan, you will be able to get the best value for your car.
- Ensure that your car has passed its MOT. Getting your MOT certification is fairly easy provided your car is in top form. Failing may mean that your car is not road worthy which will have a drastic effect on its value. Maintaining the vehicle in top condition will help with its MOT certification and improve your chances of getting a logbook loan.
- Brush up on your paperwork before applying for a logbook loan. By having all the necessary documentation ready, such as the V5 registration document, proof of citizenship and proof of your ability to pay back the amount mainly through bank statements and pay slips, you will play your part to help speed up the process and get your money within a relatively short time.
When taking a logbook loan, ensure that you understand fully the terms and conditions on the loan such as your repayment period, the interest you will be paying back, the periodic amounts you will be paying and the consequences for not paying back your loan on time. To take the logbook loan you will need to be the legal owner of the car and it has to be more than 500 pounds in value. Short term loans usually have high interest rates and you need to be sure you can repay the full amount.
Make sure your lender is a member of a trade body and adheres to its code of practice and conduct and keep in mind the cons of taking a logbook loan in mind at all times. These are;
- You lack the same consumer protection as found in a hire purchase agreement
- It’s easy to lose your car in case you can’t pay back the logbook loan. When taking the loan, you hand over ownership of the car to the lender.
That said, once you are well versed in the conditions surrounding and necessary to take a logbook loan, you can go ahead and apply for one as it may be a sure fast way to get you out of your current situation and help you sort out your short term issues.