Is Securing Money Against Your Car A Viable Option?

If you find yourself in a position whereby you are short on money, you are likely to feel extremely stressed and worried. How are you going to pay your bills? How are you going to give your children money for school? How are you going to put food on the table? Nobody likes to feel like this. And, the truth is, you don’t have to. Thanks to the lending options available nowadays you can borrow the money you require to get yourself back on track. Nevertheless, you do need to make sure you select the right loan, and this post reveals why a logbook loan could be the best option to go for. Read on to discover more…

One of the main reasons why logbook loans are held in such high regard is because they offer flexible lending. If you were to go for a payday loan instead, you would only be able to borrow a small amount of money for an extremely short period of time. This is not the case with a logbook loan. Instead, you can usually borrow up to seventy percent of your vehicle’s worth. You will also have between six months and two years to pay back your loan. Of course this is dependent on the lender you select and the terms and conditions of your loan specifically. But, in general that is the time period offered for this type of loan. Therefore, this offers people the security that they will be able to manage their loan repayments effectively. It is also important to point out that you do not need to borrow the full amount of money you are offered. You can simply take what you require. 

Aside from this, another benefit associated with a logbook loan is the fact that a wider scope of applicants is generally considered. If you have a bad credit history and you try and lend via traditional methods, you will struggle to be accepted. However, with logbook loans, you will be given a chance. This does not mean you will be granted a loan – they aren’t handed out to anybody. You will need to prove that you are over the age of 18 years old, you have paid for your vehicle in full, and that you are capable of paying the loan repayments. 

As a logbook loan is essentially a loan secured against your vehicle, a lot of people mistakenly believe that they have to hand over their car. This is not the case. You only have to hand over your vehicle’s logbook. You have full access to your car unless you fail to make the repayments you have agreed to. Thus, this type of loan will have no negative influence on your daily life.

Last but not least, a final benefit many people experience with a logbook loan is a straightforward application process. A lot of companies give you the option to apply online. They will tell you what they require from you and you merely have to submit it electronically. If you were to go down a traditional lending route, it is likely you would experience a lengthy and segmented process. Logbook loan companies are generally quick to deposit the money in your bank as well. There is no prediction of how long it will take for your loan to be approved, but once it has been you can expect quick access to your funds.

Overview of why you may want to apply for a logbook loan if you need some extra cash

In the current day and age, there are so many different options for people when it comes to lending money. Nevertheless, not all of these options are favorable. Take payday loans as an example. So many people end up in a worse situation than they were, to begin with. Nevertheless, a logbook loan offers a recommended solution, and here is why…

Get cash fast

First and foremost, one of the main benefits associated with a logbook loan is the fact that it presents people with the opportunity to get their hands on some fast cash. Nine times out of ten you will get your money within a mere few hours of having your application approved. This is extremely beneficial for those who have urgent bills they need to pay. 

Low eligibility criteria

One of the main benefits associated with this type of loan is the fact that so many people are eligible. You don’t have to worry about any credit checks as you would if you were lending from a bank. This gives those with a bad or no credit history a chance. Usually you just need to prove the car is yours and that you have paid for it in full. 

The easy and straightforward application process

As mentioned, you are not required to have a credit check, and thus the application process is a lot quicker, easier and more straightforward. Most companies will allow you to apply online. This will only take you five to ten minutes at the very maximum. It has never been easier to get your hands on some cash.

Top three things to look out for when finding the best company for logbook loans

Logbook loans have become extremely popular because they present people with a great alternative in comparison to payday loans. The eligibility criteria is low as well, which means people with a bad credit history will still be accepted. Nevertheless, if you want to benefit from all a logbook loan has to offer, you need to find the best lender. You should be looking out for the following…

Eligibility

As just mentioned, one of the main benefits associated with a logbook loan is the fact that the eligibility criteria is low. Make sure you find a company who does not require any past credit history or financial checks. To qualify you must be over 18 years old, own the car in question and have paid it off in full. 

Repayment terms

Never ever apply for any type of loan without knowing what the repayment terms are. You need to know exactly what you are letting yourself in for. When do you start paying back the loan? Will you pay back on a monthly basis? How much do you pay at a time? You need to know the answers to these questions. Don’t forget to read the small print!

Reputation

Last but not least, there is a lot to be gained by discovering what previous customers had to say about the loan they received. Were they happy with the service provided by the company? Were the terms true to what they expected? Was the company easy to contact? By reading feedback you will gain honest answers to the questions you really want to know. This can be a real eye-opener. 

Is a logbook loan going to be the right solution for you, though?

Unfortunately the need to borrow money is something that is only becoming more common. This is matched via the wealth of different lending options available in the current day. One of these options is a logbook loan. But what is this? And, is it the right solution for you?

A logbook loan is essentially a loan which is secured against your vehicle. Don’t worry; you do not have to hand over your car. You just have to hand over your vehicle’s logbook; as the name suggests. If you fail to meet the repayments that have been agreed then the company in question will have the right to hold back your car until you do. 

There are several things you need to bear in mind when determining whether a loan is right for you. Of course, if you have needed a bankruptcy and foreclosure defense in the past, we don’t recommend lending, as you could go down a slippery slope. Responsible lending is a must. One of the best things about logbook loans is the fact that the eligibility criteria is low. However, there are a couple of boxes you will need to tick, and these are as follows…

  • You must be over the age of 18 years old
  • You must hold a valid driving license
  • You must be the registered owner of the vehicle
  • The vehicle in question must be paid off in full

If you can tick off these four boxes then you will be eligible for a loan secured on your car. Now, let’s dig a little bit deeper. These loans in particular are great for people who have struggled to borrow by more conventional means, such as lending money from the bank. If you have a bad credit history or no rating at all, then logbook loans are great for you because credit history is irrelevant. 

And finally, the amount you can borrow is determined by the value of your car. Usually you can lend up to 70 percent of the value. Thus, the last factor you need to consider when determining whether this loan is right for you is whether the amount you want to borrow parallels the worth of your car. 

Hopefully this article will have given you a greater insight into logbook loans and help you determine whether this solution suits your situation or not. 

Have a Great Week!

Love and Blessings

Disclosure: This post MAY contain affiliate links and I may receive compensation if you make a purchase after clicking on any of my links. For more information about FTC disclosure requirements, please see here

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About Kimberly Miller 3489 Articles
Kim is the CEO of Life in a House, proud mother to two great sons, and 2 beautiful granddaughters. She loves spur-of-the-moment road trips and weekend getaways to Norfolk and Virginia Beach. She has been blogging for over 17 years and focuses on family, home, and lifestyle topics. She loves hosting giveaways and putting together great gift guides for likeminded grands looking to spoil their grandkids. Her dream is to retire to a little cottage on the beach and spend her days collecting shells with her granddaughters.
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