A logbook loan is designed for people who need extra money but cannot get a standard loan. Many people borrow money using credit cards, bank loans and overdrafts, but there are people who cannot borrow this way. Some people have CCJ’s against them, have been declared bankrupt or have a bad credit record for other reasons such as not paying back debts, having too much credit or having no credit record due to no borrowing history.
If you cannot get a loan in a conventional way, then you need to look somewhere that will lend money without doing a credit check. Logbook Loan companies do not do this. They do need you to fit other criteria though. You will need to own a vehicle that is worth more than the loan. You will need to have an income to pay back the loan. You will need to be able to prove your identity and be prepared to hand over your logbook to the lender.
So if you need some money urgently and cannot borrow it elsewhere, then you could get a logbook loan. It is important that you won the vehicle. If you have a loan on it, then you may not get a loan. If the loan is worth less than the resale value of the vehicle, then you might be able to borrow some of its value.
Logbook loans are expensive and so if you can borrow money elsewhere, it is best to do so. You will find that they may be able to get you the money quicker than other sources though and so you may need them for this. However, do try seeing if your bank can extend your overdraft or your credit card limit first as this could be a better way to get the money. If you do not have a credit card or overdraft, then you may not be able to negotiate one at all or in time and therefore a logbook loan could be the way to go. You will of course need a vehicle to use as collateral that fits their requirements.