Who should consider taking out a logbook loan?

The debate on the pros vs. cons of logbook loans is not about to die down anytime soon. Ever since logbook loans became a reality, there have been divergent opinions as to whether they serve the purpose or not. Granted, we can’t run away from the fact that logbook loans have been instrumental in helping scores of UK citizens get access to emergency loans without having to worry about their credit scores. On the gloomy side, the high interest rates associated with logbook loans not to mention the risk of repossessions has indeed made logbook loans unpopular with a number of people. That aside, the focus today is not on the pros and cons of logbook loans but rather, who, in no uncertain terms, should consider applying for a logbook loan.

Individuals with bad credit

Having bad credit is a nightmare in itself. When you have bad credit, getting approved for a phone contract or loan is a tall order. In fact, you can be sure of bottlenecks and frustrations when applying for a loan. The same does not apply when it comes to logbook loans. Considering the fact that logbook loans do not take into consideration the credit score of a person, you can be rest assured that you will be approved for this kind of loan even if you have bad credit. In a nutshell, if you have been rejected every time you apply for a loan, consider applying for a logbook loan.

Individuals with a history of defaults

It is one thing to have bad credit because you defaulted once in the past and another thing to have a history of defaults. Defaulting every now and then whenever you take a loan makes you a risk in the eyes of the lender. As such, it becomes impossible for any high street bank or mainstream lender to approve you for a loan. Well, if you have a history of defaults and own a car in good condition that you can set up as collateral, consider applying for a logbook loan.

Individuals with no prior credit history

You probably choked on your drink on reading this. I mean, how does having no credit history make you consider applying for a logbook loan? Can’t you go for a standard loan with cheaper interest rates? Well, the thing is, when you have no prior credit history, lenders have no idea how responsible you are when it comes to finances. They therefore find it difficult to approve you for a loan because they are unsure of whether you are responsible or irresponsible. In such a case, the ideal thing to do would be to apply for a logbook loan that simply doesn’t care whether you have a poor credit rating or if you have no prior credit rating.

To sum it up, if you feel as if getting approved for other types of loans is a tall order, consider applying for a logbook loan. The requirements are pretty simple and the fact that your credit score doesn’t rear its ugly head makes it the best loan product to consider.