Logbook Loans

Frequently Asked Questions

Q. Who loans me the money?

Numerous financial institutions offer logbook loans. There are many different providers, and we aim to match you up with the right one, hassle-free.

Q. Are logbook loans legitimate?

Yes! it is just like any other loan -- you get money in return for a guarantee that you'll pay it back. Your guarantee is your vehicle. As long as you borrow in good faith, it's a completely safe way to access much-needed cash.

Every lender in the UK must have a consumer credit license. Logbook loan lenders are no exception.

Q. Can I keep my car over the term of the loan?

Yes! That's the beauty of a logbook loan. Other types of loans require you to deposit property as collateral until the time of repayment. You can keep your car and drive it too!

Q. How much money can I borrow?

The amount you can borrow varies based on the value of your car. Generally lenders are willing to front up to 75% of your vehicle's value in cash. For example, if Glass's estimates your car to be worth £4,000, you could be eligible for a loan up to £3,000.

Q. I don't have a fancy car. Can I still get a loan?

Yes, a fancy car is not a requirement. If your car has four wheels and can drive in a straight line, chances are it can qualify as a collateral. Note that truly decrepit vehicles would not be eligible.

Q. I don't own my car. Do I qualify for a loan?

Sorry, no. You cannot borrow against a leased or hired vehicle.

Q. What kinds of vehicles qualify as collateral?

All sorts. Anything with a V5 qualifies. Your car, minivan, truck, or motorbike would all be eligible.

The only restrictions are as follows:

• Your vehicle must be taxed and insured.
• Your vehicle must have passed the Ministry of Transport test within the past 3 years.
• Your vehicle mustn't be over 10 years old has a value below £800.

Q. How do I know what my car is worth?

Most lenders will go by your vehicle's listed Glass's Guide value. You may want to check www.glass.co.uk for yourself before accepting the terms of a loan, just to be sure.

Q. My car is worth ?XX,XXX. How much of that can I receive as a loan?

Anywhere from 1% to 75%. As long as there's nothing unusual about the vehicle -- the car isn't a circus k-car, for example -- you will most likely be offered 75%.

Q. What documents will the lender hold as collateral?

Just your vehicle's V5 form.

Q. Who qualifies?

If you are:

• 18 years of age or older.
• A UK resident.
• Earning some sort of regular income.
• The legal owner of your vehicle.

You are eligible for a loan.

Q. Who can apply?

Anyone can apply. Note that in order to actually receive a loan, you'll need to meet the qualification criteria listed above.

Q. Must I have good credit to qualify?

Absolutely not. Most lenders won't even check your credit history when you apply for a loan. Since you're putting up a piece of property as a guarantee of payment -- your vehicle -- the lender is satisfied that he'll not be stiffed.

Q. Will my loan application remain private between myself and the lender?

All online and telephone applications are 100% private. Maintaining the security of your details is a top priority for all lenders.

Q. How long does it take to apply?

Shouldn't take more than a couple of minutes. Just fill in a few personal details and you're good to go.

Q. What information is required to apply?

Above and beyond the obvious (name, address, and so on) you'll need to provide:

• Your logbook (V5 form).
• Proof of income.
• Insurance certificate.
• Proof of successful Ministry of Transport test results.
• Proof of address

Q. How soon after applying will I get my cash?

A couple of days at most. It's not unheard of to get your cash on the very day you apply.

Q. How will I receive my money?

Generally you'll get your money either in cash or by cheque. This depends on your provider.

Q. Will I pay interest on the loan?

Yes, you will have to pay interest on the loan.

Q. How much interest will I have to pay?

Exact rates vary from provider to provider. As a general ballpark, you'll be looking at a 400%+ APR. Note that it's a bit of a trade-off; you pay a high APR, but pay less in fixed fees (e.g. appraisal fees and credit fees).

Note that a payday loan often carries an APR of 1000% or higher; so a logbook loan is a much better option from an affordability perspective.

In any case, make sure you understand the terms of your loan before you sign anything.

Q. I don't want to get ripped off. Are these loans right for me?

Yes! it is a legitimate solution for you if you've got short-term cashflow problems.

You'll pay a higher interest rate than you would on a bank loan, but that's to be expected -- the lender isn't checking your credit or doing a background check, so there's more risk involved for him. As long as you steadily repay your loan, it is a good way to cover short-term needs.

Note that if you're comparing logbook loans and payday loans, the former is much cheaper in the long-run. Payday loans carry interest rates as high as 1500% APR! So compared to a payday loan, a logbook loan is a great deal.

Q. How long will I have to repay my loan?

This depends on the terms you set with your lender. In general, you'll want to repay as quickly as possible. The APR on these is comparatively high, so the faster you repay, the less the loan will cost in the end.

You can repay within a few days of receiving it, if you wish. If you need the money longer-term, you can take a year or more. Again, the period over which you can repay is dependent on the terms you set with the provider.

Q. Can I break my payments into monthly or weekly periods?

This depends on the terms you set with your lender. How you want to structure your repayment schedule is generally negotiable. Figure out what works for you and choose the right loan accordingly.

Q. How can I apply for one right now?

Easy -- just fill in the form above. The provider will receive your application within minutes, and you'll be assessed as quickly as possible. You should hear back within 24 hours regarding the status of your loan.

Q. Do I obligate myself to anything by submitting an application?

Absolutely not. An application is simply that -- an application. You will not commit yourself to accepting a loan by virtue of having applied.