Before applying for logbook loans, it is important to understand in detail what these loans are and how they work. Since most people who apply for these loans are in difficult financial conditions and have a bad credit history, it is important for them to understand the loans so that they can pay off the loans in time as required, as take care of their finances in an effective manner.
Here are a few things that you should keep in mind while you decide to apply for logbook loans :
You must be the owner of a vehicle so that you can use it as collateral for the bad credit loans :
- The vehicle should be able for driving.
- The lender will get the vehicle inspected before the loan is approved.
- You will need to sign a contract and follow the terms and conditions of the contract.
- The monthly payments have to be paid in accordance with the loan contract.
- The ownership of your vehicle will have to be transferred to the lender.
- You will be allowed to use your vehicle but you will not be its own once the loan is approved.
If you fail to pay off the loan in accordance with the conditions of the contract, then the possession and ownership of the vehicle will be transferred to the lender for better.
You must be at least 18 years of age for being eligible for the loan.
Only UK citizens can apply for these bad credit loans.
The eligibility criteria for the loans for bad credit may differ from lender to lender. However, in most cases all the lenders have similar criteria and the approval process is similar as well. It does not take more than 24 hours for the cash to be delivered to you, once the loan application is submitted.
If you have purchased your vehicle through a car loan then the loan should be paid off before you can apply for the log book loans. The interest rate charged is often high compared to other poor credit loans and you should be prepared to pay the monthly installments of the loans.