5

Sep 15

Logbook Loans Information

If you have a poor credit history and own a car then a Logbook Loan could be the right loan for you. The way Logbook Loans work is that Logbook Loan lenders lend to individuals on the condition that they give up their Logbook and usually a spare key and other car documents for their car as security against the loan. The person taking out the loan will usually be able to hold on to their car and drive it as normal throughout the duration of their loan which can range from any period of around 1 to 36 months.

The amount Logbook Loans lend tends to vary between £500 and £5000. The main disadvantage to this type of loan is that if for any reason the person taking out the loan cannot make the repayments for the loan then the Logbook Loan Lender has the right to repossess your car. In addition to this due to the greater risk a Logbook Loan Lender is taking with lending to an individual with a poor credit rating the interest rates on this type of loan tends to be higher. With this in mind it is advisable to pay back a Logbook loan as quickly as possible as the quicker you pay back the loan, the less you pay.