Log book loans UK are a relatively new type of loan that people are now starting to research to see if it something that might be able to help them out. In this economy there are an increasing number of people who need to utilize credit products such as this to enable them to make ends meet.
Logbook loans are for UK citizens who have a bad credit rating or other problems keeping them from obtaining a more traditional product. This loan is secured by your car, which cannot be older than ten years, and it has to be free, or almost free, of financing.
It is often a relatively short term loan, although they can be taken out over an 18 month period, and the always have a very high interest rate. The lenders usually do not ask, or care, what the loan is for as it is secured by your car. It is generally set up to be paid off in six months; however, they suggest that you try to pay it off early as the interest rate is so high, and there is no early payoff penalty.
You can find these loans online using a search agent such as Google, or in Cash Converters (who are in many UK cities and towns). You apply for it over the internet, and you will get your answer anywhere from one hour to two days. Most of these places do not even check your credit rating. Some of the lenders have you go to the loans office of the auto title; others make arrangements to meet somewhere convenient for you to finalize the deal and give you the money (or wire the money directly to your bank).
With the very high interest rate and the possibility that you may lose your car if you are unable to pay the loan back as scheduled, only you can decide whether or not you need the money bad enough to borrow it using a log book loan. If you do, make sure the payments are affordable and, if at all possible, pay it off early. The good news is that if you make your payments on time or early, it should help your credit score so you might be able to use a less expensive lender next time.
