Log Book Loan An Alternative To A Pay Day Loan

So you need an extra cash injection but you don’t want to go down the pay day loan route what about getting a log book loan?

A log book loan is secured against your vehicle, which means if you default or don’t make your repayments on time, the log book loan lender will come and tow your car away and sell it at an auction.

To obtain a log book loan you must be over the age of 18, be a resident of the UK, be employed either part time, full time or even self-employed and you have to be the owner of a vehicle that is under 10 years old and this vehicle must free or nearly free from any finance.

The procedure is very simple, you visit a log book loan lenders website, and fill in your details, you will then meet up with one of the company’s reps where you will be asked to bring various documents, such as proof of id, proof of address, bank statement, wage slips and of course your log book or v5 as it is also known.

Once you have met the rep he or she would of already done some calculations to see how much your car is worth, bear in mind they will only loan you the trade price of the vehicle. The rep will then check your documents and check around the vehicle. You will be asked to sign lots of papers make sure you read everything before you sign once that is completed you will be handed a cheque. When I applied for a log book loan I applied on the internet on Wednesday and had my appointment and cash on the Friday, so the procedure is very quick.

The only catch is you need to give the loan lender your log book. You can still use your vehicle as normal but if you need to tax your car or you need to provide your documents to the police the loan lender will then give it to you but you must return it as soon as you have finished with it.

Unlike pay day loans, log book loans are paid back over 18 months you have to pay it weekly but if you pay a month up front you can then pay back the loan monthly. There are few log book loan lenders in the market so as always shop around to see which lender is the cheapest.

Remember if you do decide to go down the v5 loan or log book loan route the risk is you will lose your car if you fail to make your loan repayments on time.

For more information about pay day loans or log book loans visit www.mymoneycredit.com