Before a loan is given out, a financial service company looks into a lot of things, from personal identifications, to credit scores; a dozen steps need to be accomplished before a loan application turns into actual cash. To sum all the requirements up in one term, a financial service company looks into a loan applicant’s “assets and liabilities”.68% of UK residents own a vehicle. Owning a vehicle is considered an asset. Given such premise, 68% of the people living in UK have already passed the assets and liabilities screening: that’s like more than half of the country’s populace being pre-qualified for a logbook loan.Logbook Loans Are Fast
Logbook loans are also known as “same-day” loans. Unlike other credit products out there, logbook loans offer more flexible payment schemes and lower interest rates; and if you own a vehicle, then you can get an instant logbook loan the same day you applied for it. Your car will serve as your refuge in times of unforeseen financial crunches. Prior to your logbook loan application, make sure that all of the taxes due to your car, or motorcycle ownership are paid up. Car registration and maintenance fees should all the updated, otherwise, the loan company might reject your application and ask for some other assets as collateral. If the car is still not fully paid and was already used as collateral for a logbook loan, the borrower would have to ensure that the vehicle’s interest rate is registered with the Consumer Credit Trade Administration of UK.
Added Perk
Now that you know that your car will serve as your temporary cash source, it is good to be aware of the other benefits that come along with it. Most logbook loan companies allow their borrowers to keep their cars for the entire duration of the loan period. These same companies also have a “no payment within 60 days” scheme, where a borrower will still assume a “loan-free” state of mind for a full two months.
Role of Trustees
People with bad credits veer away from credit applications: fearing that other groups of people will view their financial incapacities. This uneasy scenario is now a thing of the past, now that a legally owned vehicle can be used as a goodwill piece every time you apply for a logbook loan. Using vehicle collaterals are also beneficial for people who have declared bankruptcy before, or are currently under bankrupt status. In such cases the borrower should have a trustee with a clean financial record.
For Self-Employed Borrowers Too
Logbook loan companies also provide the same application procedures to self-employed borrowers. The only thing they would have to produce on top of their cars’ documents would be their latest proof of income and other business certifications and permits. Car owners are also exempted from waiting in line for hours just to be interviewed by a loan agent. Most logbook loan companies dispatch a loan agent over to the borrower’s address for a quick interview and address check. All these are done in the expense of the logbook loan company as long as a vehicle is used as security for the loan.
Author Bio:
Logbook loan is a great way to borrow money against your car. Get fast cash in logbook loans. At click4logbookloans.co.uk, we provide you the proper comparison of top logbook loan providers, to select perfect one for you.