However you want to look at it, the truth of the matter is that a lot has been said about logbook loans. You only need to scour the internet to fully comprehend the extent to which misconceptions regarding these loans continue to be thrown around. The sad thing about it is that individuals who know little regarding logbook loans continue to believe these fallacies which in essence clouds their judgement when applying for such a loan. In order to apply for a logbook loan with a clear mind, it’s essential that we shine a spotlight on the common logbook loan misconceptions.
You lose possession of your car when you apply for a v5 loan
This is nothing more than a myth. In essence, logbook loans operate in such a way that you hand over your cars logbook to the lender while you continue using your car. As such, the car remains in your possession as you make repayments for the loan and the only time you can lose possession of the car is if you are unable to meet your end part of the bargain as regards repayment and the lender repossesses it.
You can’t avail a logbook loan if you have a poor credit rating
If you’ve been denied a loan by high street banks or other financial lenders, the same cannot be said of logbook loans. In fact, logbook loans are referred to as secured bad credit loans which essentially means that they are specifically designed for individuals with bad credit. The idea therefore that you can’t avail a logbook loan with bad credit is simply a myth, a misconception.
The application process for a logbook loan is tedious and long
This is far from the truth. In fact, unlike loans availed from high street banks, the logbook loan application is quite short and simple provided that you have all the needed documentation. Unlike loans from high street banks, you can actually apply, get approved and receive the money you require within the same day. All you need to do is ensure that you meet the basic requirements and submit all required documents. Approval is usually within a couple of hours.
Repayment of logbook loans drags on for ages
The reality of the matter is that the period of repayment is dependent on the amount you borrow as well as how diligent you are in making repayments. A small amount of money has a short repayment period while a huge sum of money borrowed has a long repayment period. When you miss payments every now and then, you actually prolong the repayment period not to mention the fees and charges you will have to pay on top of what you are expected to pay on a monthly basis. In other words, even if the contract states that you have to repay the loan in 36 weeks, nothing stops you from making the repayments earlier if you have the means.
In a nutshell, it is important to have the correct facts prior to applying for a logbook loan. Don’t apply under the wrong assumption and come to regret later. Knowledge is power!