Logbook loans are fast becoming the latest hype. People with low credit scores and those earning a low income can now have access to money when they need it (subject to eligibility and affordability). As long as you have a vehicle in your name, you can use it as security against a loan. More and more people are choosing this option as times get harder and people are struggling from one paycheck to the next. There are many reputable companies out there that are offering logbook loans.
One such company is Cash Converters. The type of logbook loan cash converters offers is flexible. The company was started in Western Australia in 1984 and has since grown into a thriving international company. It has also expanded into countries such as South Africa, New Zealand, France, Canada and the USA. Cash Converters offers loans against just about anything such as personal goods, household goods and appliances and all types of electronics. They basically lend you money against any item of value. When you take a logbook loan, you are basically using your car as security against the loan. The only difference between a logbook loan and any other at Cash converters is that with other items, you need to take it in and it is kept at their premises until you pay off your loan. With logbook loans you simply take in your logbook or V5 registration document and you are able to use your car while paying off the loan. The only time a problem could arise is if you default on your loan. Then the company has the right to repossess your car. However, if you stick to your end of the bargain, you get to keep your car.
In order to qualify for a logbook loan from Cash Converters you will need to meet the following criteria:
- You must be over the age of 18
- You must provide proof of address and identification, including one document that has your signature.
Your personal information, photo and borrowing history is then entered into their database. This information is safe as the company is registered with the Information Commissioner’s Office and your data will not be shared with anyone.
When borrowing from other logbook loan providers, similar criteria must be met. These loans are lenient in the sense that it does not require you to have a top notch credit score, like most banks and financial institutions. These loan places also do not require you to have a guarantor. So you are the only person responsible for paying your loan and if you do not, then unfortunately the consequences must be faced as is the case with all things in life.
Logbook loans come in handy when you need money in a hurry. There are many times in life when you need money, because unexpected circumstances arise, but you simply do not have it. Trying to arrange money from friends and family may prove futile considering the economic times we live in. Your boss may not choose to give you that advance you requested and your bank may decline your application for a loan. In times like these when your options grow less, you need a logbook loan. Once it has been established that you can meet the affordability required for the loan, it will be granted. You may choose to pay off the loan sooner rather than later in order to avoid the interest charges. However, as long as you make your payments on time, you will continue to have access to your vehicle as normal.
All you need to do is take the required documentation and go to your nearest logbook loan store, where a professional consultant will assist you in filling in your application.
