Applying for a loan nowadays proves to be extremely difficult for a lot of people. You see the advertisements on television saying you can borrow ‘X’ amount of money today. However, when you apply you might have to hear “sorry, you do not meet the eligibility requirements”.
This is usually because companies require stringent credit checks and a lot of people cannot meet the credit requirements needed. This makes it almost impossible for a lot of individuals to loan. After all, having a bad credit rating does not necessarily mean that you do not have enough money to pay back the loan or you are a bad candidate to borrow money.
People may have a bad credit check simply because they have never had a credit card in their life. Most people would view this as a good thing but in terms of credit rating, it does not do you any favours. Other people may have a bad credit history because they have never taken out a loan before. Moreover, there are individuals who are self-employed and do not have enough tax history to form a good rating. These people also suffer at the hands of an insignificant credit check.
As you can see from the points mentioned above, those who have a bad or insufficient credit rating are not necessarily bad candidates for loans. However, they can suffer at the hands of a ‘chicken or the egg’ scenario regarding approval of certain lines of credit.
Luckily these challenges can be worked around thanks to log book loans. This is a loan which is secured against your car. Therefore, you borrow money and in exchange your car is offered up should you default on your payments. This loan is relatively straight forward; it provides quick cash and is a solution for many people who need a little bit of extra money.
There is very little documentation needed when applying for a log book loan. Individuals merely need to show that they have a full driving license and that they permanently reside in the UK. There is no need for lengthy checks, credit ratings or anything similar. Hence, it is really no surprise that logbook loansare booming in popularity all over the country.
You can borrow anything froma couple of hundred to many thousands of pounds. For a lot of people, it seems inconceivable that they would have to go through a strict credit check process to merely borrow £300. Many companies might actually charge you more to take out the loan than what the loan is actually worth. Thankfully log book loans combat all of the issues usually experienced when applying for a traditional loan.
If you have a bad or insufficient credit rating and want to borrow money you now can. It is not all doom and gloom like many believe. Logbook loansprovide a solution to all individuals in possession of a motor vehicle.