Logbook Loans

Logbook loans are fast becoming the alternative to payday loans as there is no credit check. In fact, you can have a terrible credit history and still have no problem getting a logbook loan.

Because a payday loan is unsecured some of the lenders are becoming extremely choosy about who they lend money to. Most will run a credit check and should you have a less than good credit history will either say no or drastically limit the amount you can borrow from them and charge you a higher interest rate than advertised.

With a logbook loan you have no such problem because most lenders do not run a credit check on applicants. This is because the loan is secured on your car so if you fail to make the repayments the loan company can sell the car to recover their money. Even if you have had CCJ’s or don’t have a bank account, you can still get loan secured on your car.

The amount you can borrow will obviously depend on the value of your car and whether the finance is fully paid off or not. You can find offers ranging from £200 to £50,000 if you shop around (see our reviews below).

While not as fast as payday loans you can still expect to get your money within 24 hours and quite often on the same day which makes logbook loans a genuine alternative to payday loans should a financial emergency land at your door and although it is possible to arrange for much larger logbook loans than it is for a payday loan you should still only use them for emergencies.

Because of the high interest rates they shouldn’t really be used for other purposes. The APR can be anything from 350% to 500% which still makes them less than the costs of a payday loan but that is because the loan is for a longer period rather than just until the end of the month.

All the logbook loan lenders we reviewed also offered attractive early settlement discounts and you can make huge savings by taking advantage of this option rather than borrowing the money over a long period. Lets say you borrow £1500 and pay it back in 4 weeks time. You could expect to pay about £400 in interest which is favourable to a payday loan. Borrow it over a year though and you could end up paying £2500 in interest alone.

If you own your own car and you have either paid off the payments or only have a few left, then one of the logbook loans might be a better alternative than a payday loan. This is especially true if you have a bad credit score or have CCJ’s on your file. Read our logbook loan reviews below and find the best deal for your circumstances.