Logbook Loans Myths
No doubt, in your research into a loan option to suit your needs (and especially as you probably have a bad credit rating), you have heard many myths about logbook loans. Now we aren’t going to try and defend everything here, but most of the time it is the provider of the product and not the product itself that is the problem. For that reason, we not only ask that you research the company you intend to loan from, but that you do it thoroughly. A logbook loan is a solid product and one we are very proud of.
Here are some of the common myths we have heard about logbook loans.
My bank will frown upon the fact that I took out a loan such as this
No, they won’t because they will never know! Yes, we ask for bank statements, but we will never ever ask your bank for any information. We don’t even run a credit check, therefore no footprints are left on your credit score whatsoever. So don’t worry, you won’t receive any calls from your bank manager. And remember, they probably turned you down for a loan in the first place.
My boss will find out and then I will be embarrassed
Again, although we ask for your latest payslips, this is to only judge that you receive a regular income. We will never contact your place of employment, either your immediate boss, one of your colleagues or the Human Resources department. No one will know that you have taken a loan with us, only if you choose to tell them.My credit history will be affected negatively if I take a loan out from an institution that is not a high-street bank This is a rumour started by the banks and frankly, it is complete rubbish! As mentioned above, we do not even go near your credit history. No financial institution will be able to tell if you have taken out a logbook loan or not.
Although the loan is approved, it can take weeks for the cash to be paid into my account
Although this may be the case with some unscrupulous lenders, it is not with us and many other ethical institutions. If you are approved, we will have the money in your account in no longer than 24 hours. We know you need it so we make sure our payment process is the fastest available.
Your rates seem too good compared to some other loan providers
Again, you probably saw the rates given by some unscrupulous lenders who not only use the highest interest rates available but hide penalties in the fine print of the agreement, especially if you miss a payment. We have been in the logbook loan market for 10 years and although it is the way we make a turnover, we understand that without clients, we are nothing. That is why together with our partners, we offer some of the most competitive rates available.
I have heard logbook loan horror stories where people have their vehicles repossessed for nothing
Again, this all comes down to the lender they signed with. We go out of our way to afford you options should you miss a payment, including adding it to your loan term and extending it by a month. Only in extreme circumstances when you have missed multiple payments do we start looking at repossessing the vehicle. Believe us, we give you every opportunity to make payments so this does not happen.
Can logbook loans affect my chances of getting a high-street bank loan in the future?
Not at all. Again, we cannot stress enough that a logbook loan does not require a credit check. Therefore, there is no footprint left on your credit history.