Misconceptions regarding logbook loans
It is commonly said that a lie repeated many times is assumed as the truth. Unfortunately, just like a lot of things on the internet, there are indeed a number of lies or rather misconceptions regarding logbook loans. When we talk about misconceptions, we are talking of statements meant to mislead people regarding logbook loans. Some of these lies have been repeated so many times that a substantial number of people have come to regard them as gospel truth. Well, this particular post is designed to dispel these lies and untruths.
Lie 1: Only employed people can be considered for a logbook loan
Well, the truth of the matter is that anyone can apply for a logbook loan employed or not. What most UK logbook loan lenders ask for is proof of income. As such, those who are self-employed and working part time are free to apply for a logbook loan provided that they can provide sufficient proof that they receive regular income monthly. Of course, copies of bank statements is a must!
Lie 2: Only a car is accepted as security when applying for a logbook loan
Granted, a car logbook is required when applying for a logbook loan as security. However, the belief that a person must be in possession of a car to be considered for a logbook loan is incorrect. Individuals owning a motorcycle, a van or even a truck can be considered for a logbook loan provided that they are in good condition and the value of the same can cover the loan amount they need.
Lie 3: Those with a history of CCJ’s cannot be considered for a logbook loan
No doubt, logbook loans are bad credit loans and therefore to allude that those with a history of defaults cannot be considered is in essence contradictory. So long as a person can provide proof that they are able to meet monthly repayments, they can be assured of logbook loan approvals.
Lie 4: You lose possession of your car the moment you get approved for a logbook loan
This is a misconception and a lie so to speak. When you get approved for a logbook loan, you simply lose possession of the car logbook but continue using your car for the duration of the loan. The only time you get to lose possession of your car is when you are unable to repay the loan and the logbook loan lenders repossess it to recoup their money.
Lie 5: Repayment of logbook loans takes ages
This is nothing more than an incorrect argument. Depending on how much you need and the value of your car, you can borrow anything from a paltry 250 pounds to a substantial 50000 pounds. While you have up to 36 months to repay the loan, there is nothing that prevents you from repaying or clearing your loan at any time. The assumption therefore that logbook loans drags on for ages is nothing more than an incorrect argument.