Did you know that if you have acar of your own, you can get an easy instant loan against it which would be transferred to your account in the form of cash within a few hours of filling the online application? This is how easy the logbook loans are and one of the many reasons why they are gaining such huge popularity all over the world, especially the UK.
9 Things to know
So, before you go out applying for a loan online, there are many things you need to know about it.
- It is not only applicable tothe car, although it is one of the most common vehicles used to get this loan. You can get a loan against your motorcycle, yacht,and even your private jet.However, finding a company to make that possible will be a little tough since most of them prefer dealing with the normal routine vehicles.
- This loan is usually not applicable to older cars. Their resale value is low,and this not only affects the cash you can get from them but also make them a secure bet against the loan. Like all other options, this loan comes with its ownrisks as well. In case you fail to pay the loan back on time, your car will be charged for it.This is why the lending companies deal with cars that are not older than 8 years to make their loans safe.
- This loan doesn’t work by your credit rating. If you look around, you will come to realize that most of the loans are dependent on the financial habits that you had years ago. The fact that your past keeps coming back to haunt you in your future makes the loanacquiring process a hugeThe collateral loans, on the other hand, do not take into account your credit rating and nor does applying for a loan affect your current rating in anyway. This process is totally independent of your credit score and this is what has made it such a huge hit amongst everyone in the UK.
- When I come to getting a loan, most of the companies have a limit on how much you can take. The amount you request for in the end depends on the value of the car which is deduced after a proper evaluation of your car. Most of the companies tend to send someone from their team over for this evaluation process.This, however, makes many people doubt the credibility of the overall process where the companies can easily scam their way into lying about the true value of your car to make more profit out of it in case you ever fail to pay the loan back. Thus, it is suggested to go with a company which would allow for a third-party inspection. This way you can be assured that your vehicle is being judged without any hidden agenda and you are getting the right amount of
- The process is usually simple and can take anywhere from a few hours to days to get completed. Depending on the company you choose to go with, the minute details throughout the process may vary but the process, on the whole, remains the same.
- You fill out a short application form. Some companies only have the forms available at their office while other do make things a lot easier by making you fill the form online.
- Once you are done with the form, you will not have to wait for someone from the concerned team to get back to you.This would be more of a formal inquiry call where they would be interested in your overall income, the payback terms you would want to go with and other such details. It is to ensure that not only are you eligiblefor the loan but can also pay it back.
- This would be followedby an assessment team making its way to your home to have a look at your vehicle and help you fill out all the legal documents. The amount you get as a loan will depend on the value of the car,and this is why having a relatively new car helps in this case.
- The best way to go about is first to have an inquiry placed with them regarding the actual amount you will be getting your car. Going to a couple of companies before finalizing the decision will allow you to get the best loan against the value of your car.
- The loan always comes with an interest rate that has to bepaid with each payment you make. Do research a bit about the companies that are offering lower interest rates to save yourself some money and to help with the payback too.There are companies that give you a deal where you get an even lower interest rate if you can produce another company offering better prices than they are. Taking this challenge gets you in a win-win situation: you either get to have extremely low-interest rates or find a company which is offering you the lowest rates in town.
- Most companies offer deals for switching plans as well. Coming to them by giving up another less profitableplan helps you save even more.
- There is always a maximum limit to how much a loan a company can offer. Do look into this before you get started with the process to make sure the amount would cover all your urgent needs.
These are just some of the many things you need to know about the collateral loans and the company you will be getting in touch with to get logbook loans online. With you more aware of how things work, you are now better prepared to negotiate your deal with the companies and get the maximum loan at the best rates possible.