Logbook loan FAQ

Because we pretty much know all there is to know about logbook loans, we at OnlineGuaranteedPaydayLoans have devised this comprehensive list of frequently asked questions that should cover everything you need to know about this form of credit.

Should we not have an answer to your specific question here or if you do not understand exactly what we are pertaining to in some of our answers, please contact us. Our dedicated staff are waiting to help you and to show you why a logbook loan is a perfect way to secure much-needed credit for yourself and your family.

So letís take a look at a few important frequently asked questions about logbook loans.

I have heard conflicting stories about who can apply for logbook loans. Please clear this up for me!

It is simple really. If you have a vehicle of some kind, be it a car, a van, a lorry, a motorbike or even a caravan, you can use that as security against a logbook or V5 loan. Please note, you do need to be a resident of the United Kingdom as well as over the age of 18.

I am going to be 18 in two months? Can I apply now already?

Logbook loan applications are usually approved in a couple of hours so if you are only turning 18 in two months, you cannot apply. These are due to laws that are strictly enforced by the government of the United Kingdom and there is simply nothing that we can do about them. In fact, even if you were turning 18 the next day, we would be forced to make you wait till that had happened before we allowed you to apply.

I still have county court judgments against my name. Will you allow me to apply for a logbook loan?

We simply donít care if you have a bad credit rating, county court judgments against your name, if you were declared insolvent or if you have even been blacklisted. All of these simply do not preclude you from a logbook loan. We will look at your vehicle, the condition it is in, your monthly income and expenses and then offer you a loan based on those factors. Simply put, they are the only things we worry about.

Sounds great but how much money am I allowed to borrow?

A fair amount actually. We provide logbook loans from £250 up to £50,000. Remember that it is based on a number of factors and will be calculated when you apply for your loan. These factors include the vehicle you bring to us, the overall condition of the vehicle, how much mileage it has done in its lifetime and finally your income and expenditure each month. We will base the loan amount on all of these. Remember, you may have a flash vehicle able to secure you a large amount but your monthly expenses may already be too high for you to sustain the loan repayments. We will still give you a loan but one you can afford.

Obviously, I will need to bring some form of documentation. What papers will you need?

Yes, you will! We will need copies of a number of documents including your personal identity document (a driverís licence or a passport will suffice as well), proof of residence (a utility bill, tenant contract or letter from your bank if you own a home), and three monthsí worth of payslips from your employer and three months bank statements from your main banking account. If you are self-employed, we will require six monthsí worth of banking statements. When it comes to your vehicle we will require a few documents as well. Firstly, the V5 document is the most important as it proves you own the vehicle. We will also require proof of full and comprehensive insurance as well as the latest MOT certificate for the vehicle.

So I can bring any kind of vehicle right?

Yes, we do not only give out loans against motor cars. If you have a motorbike, a lorry, a truck or even a caravan, if it has value, then we can offer you a loan against it. This gives people a massive scope on the range of vehicles that can secure them a logbook loan.

What if my vehicle is still financed?

Simply put, we cannot use a vehicle that is not fully paid off as collateral for a logbook loan. Just think about it. If your vehicle is still under finance, you do not technically own it. It belongs to the bank until you pay it off. They certainly wonít allow it to be put up as collateral for a logbook loan.

And if the vehicle belongs to my wife and is fully paid up? Can we bring it in?

Of course you can but then she will have to apply for the logbook loan and bring all the documents we have mentioned above but pertaining to her. Only the legal owner of the vehicle can apply for a logbook loan as they give us the right to use the vehicle as security for the loan.

How long will the process take? I need the money fast!!

If you bring us the necessary documents and your car is assessed by our team of experts, we can have you approved for the loan in a matter of hours. The longest it will take is a day at the most, as long as we have all the documentation. Our team will get your loan approved as quickly as they can as we understand that people that apply for loans often need the money for financial emergencies.

And after approval, how quickly will the money be paid into my account?

Well, once you have been approved, we instruct our bank to pay the money into your account right away. Sometimes, this will clear straight away but some banking institutions do hold back on clearing the money, normally never longer than a 24 hour period. If you need the money desperately and it is an amount of not more than £2000, we can provide you with a cash option.

How do I make payments?

We have a number of options when it comes to paying off your loan. These include weekly, bi-weekly and monthly payments. The choice is yours! We do recommend, however, that no matter what payment plan you decided on, you take the time to set up a debit order so the money can be paid from your account automatically. This is the best way to make sure that you do not default on a payment because you might have forgotten to do it manually. We donít want you to miss a payment as that could be costly in terms of penalty fees or perhaps you may even lose your vehicle due to repossession.

What happens if I miss a payment?

If you miss a payment, you will be charged penalty fees. If you miss a few payments, you risk your vehicle being repossessed. Remember, you are signing a contract where this is an option. Should you think you will struggle to make a payment, rather come and talk to us and we can make a plan for you.