Instances When a Logbook Loan Might Come Handy

Before logbook loans became popular in the UK, people with a low credit score or bad credit faced a herculean task getting approved for a loan of whatever kind. High street banks required that you had a healthy credit history or that you had a guarantor who had a healthy credit history before you could be approved for any kind of loan. Of course, this was akin to trying to push an elephant on a mountain hill. The results would always be disastrous.

Came the global credit crunch and life became even more unbearable to people who were deemed to be having bad credit. However, thanks to the popularity of logbook loans, people with bad credit can now breathe a sigh of relief. They can not only get access to the cash they need but also don’t have to worry about going through a strenuous screening process as is tradition with mainstream financial lenders. So what are the instances when logbook loans might come in handy?

When you have a history of CJJ’s or defaults

Let’s face it. If you have a history of defaults, mainstream financial lenders will not look at you twice when you make an application for a loan of whatever kind. In fact, you might as well get used to being rejected or give up on applying for a loan ever. This is however not the case when it comes to logbook loans. If you have such a history or your credit report is in debilitating status, logbook loans are your best remedy. This is because all you need to do is use your car as collateral and you are good to go. As such, if your credit report is nothing to write home about, you might as well consider going for a logbook loan.

When you have an emergency medical bill you have to clear

Emergencies are part and parcel of life. They happen when we least expect it and it’s during those times when we have no penny in our pockets. So what do you do? Well, you can run to friends or family. What if they are also pressed for cash or whatever money they advance you is not enough to cover your medical expenses? Logbook loans are essential in this instance. You can use your car as collateral and get the much needed cash advance to clear your medical expenses.

When you want to repair your credit report or simply want to build one from start

If you have no credit report history of if your credit report is so bad, you might want to consider taking a logbook loan. The secret is in ensuring that you make timely repayments as agreed with your lender. No defaulting will of course reflect positively in your credit report and go a long way in improving it. Alternatively, you can start building up your credit history by taking out a logbook. As is the case above, the idea is to ensure that you make your repayments on your time. It shows that you are credit worthy and of course your credit report will be stellar.