Since it can be quite difficult for a lot of people to get access to the mainstream loans it is necessary to look at the alternative options that are now available in the marketplace. If you are in a position of trying to recover from past debt issues and don’t have the most impressive credit rating, you might well find that the log book loan is able to help.
Putting the car up for security
A reason that you are able to benefit from the logbook loans with the poor credit history is that you are putting up your vehicle as collateral or security in case you start to experience difficulties in the future. You are able to continue to use the car for its normal day-to-day activities, but it will be necessary to pass the logbook to the lender and that is held for the duration of the loan term. But in the process of passing the logbook to the lender you are essentially letting them take ownership of the vehicle, and it is therefore in their right to repossess the vehicle at a later date if it is deemed to be the only way of recovering the loan amount.
A great aspect of applying for these secure loans is that you’re able to run over a good number of years, which might range from three to five years or longer, which should give more flexibility in the loan repayments. Also, the secure loans are able to attract the more desirable interest rates so you don’t need to be so concerned that you will have to pay a very high APR for the duration of the loan term.
Understanding the loan amount
In the application process you are likely to find that the total cash offered with this type of loan is heavily dependent on the value of the vehicle used as security. A vendor is able to provide a free valuation service to make certain that they are entirely mindful of the vehicle value and able to provide a loan that is able to relate to this. It is often seen that the loan amount is in the region of 50 to 90% of the vehicle value. Since this can vary quite significantly it will certainly benefit to make contact with several different companies to ensure that you are able to attract the most desirable terms and conditions.
Ideally, you want to look at making contact with three or four different lenders to get a full appreciation of the available options. Once you receive the various different quotes you can compare them side-by-side to help with deciding on the most favourable options.