Benefits of Using Logbook Loans

When you are denied a loan for development, business, or personal use because of bad credit score, the impact can have far-reaching effects. It might be difficult to fund a tender you have just won or take advantage of a new investment opportunity. However, it is not the time to give up, especially if you own a vehicle as this gives you access to logbook loans. The following are top benefits of using logbook loans.

No credit checks

The greatest obstacle that makes it difficult for many people to access credit is poor credit score. Banks, financial institutions, and even phone companies carry thorough checks on their clients to understand their credit history. If you have defaulted paying loans including overdrafts, credit card loans, and even mortgage, the information is used to calculate your score. However, logbook loan lenders do not check your credit score when offering credit. The car serves as a form of collateral that helps to keep the risk taken by the lender low. Remember to commit to repaying the loan because the vehicle can be taken away and even sold to clear the loan if you default.

Easy to access within a few days

While common bank loans take a lot of time from application to reimbursement if one qualifies, alternatives such as logbook loans are very easy. After identifying the logbook loan company of choice, it will only take a couple of days to get the money in your account. To hasten the process, it is advisable to carry all the required vehicle documentation such as V5C, insurance documents, latest inspection reports, and valuation estimates to help the lender get the right value.

There are no restrictions on what to do with the money

When commercial banks give a loan to applicants, they follow closely to ensure the money goes to specific areas of interest. For example, money borrowed for a mortgage is paid to the house seller only. Though this limitation has its advantages such as preventing misuse, it denies the owner flexibility. However, logbook loans do not have any limitations on what you can do with the cash. Even if you had a business opportunity and then decide to do something different, you have all the freedom.

You get cash depending on the value of the car

The limitation of loans you can get against a vehicle is dependent on its value and condition. If you have a very good car in top condition, many lenders will be ready to give you up to 50% of the current value. Though this can be limiting especially if you wanted a lot of money, there is a great sense of satisfaction because it is a personal property.

There is room for negotiation

When many financial institutions offer loans, the interest rates are fixed and do not have room for negotiations. However, logbook loan companies are relatively flexible and can change the APR (annual percentage rate) to fit the need of individual clients. However, the cost of logbook loans is usually higher compared to common bank loans. To keep the interest as low as possible, it is advisable to ensure you repay the loan within the shortest time possible.