If you’re someone looking to borrow money quickly, but don’t have the credit history to gain a lender’s trust, logbook loans may stand out as a solution to this. However, with logbook loans in the UK being a type of secured loan, you will need to provide personal property to guarantee it. Here at Fast Loan UK, if you are someone with poor credit, we can help you with unsecured borrowing options up to £2,000 with flexible repayments.
With our instant online loans, we can help you whether you have good or bad credit get the funds you need to cover a short term situation. This means you won’t have to provide us with any collateral, and you could receive the funds on the same day you’re approved.
If this sounds like good news to you, click apply now and get started with an application today.
What Are Logbook Loans?
Log book loans are a form of secured borrowing that help those with a low credit rating get financial help. The way they work is by the applicant providing an item of personal property as collateral for the loan amount they want. The property used needs to be at least the value of the loan applied for. For example, if someone were looking for a £1,000 loan, they would need to provide a personal item, such as a vehicle or valuables, of the same value. In many cases, a vehicle is a popular choice for a logbook loan as many applicants may have their own car already that has some value. The lender of log book loans will determine the suitability of the personal property and value it. If approved, the money is then lent to the applicant and a suitable repayment plan is put in place.
The issue with logbook loans is if you suddenly get into financial difficulty and cannot afford to maintain repayments, the collateral in your credit agreement can be used to pay off the loan. Similarly to how guarantor loans work with someone co-signing the agreement to guarantee the loan repayments, the collateral on logbook loans guarantees the loan will be paid. Like all secured borrowing, such as a mortgage for example, there is the risk that the personal property will be repossessed if you fail to maintain the loan agreement.
Not only do we not require any form of collateral or guarantor, at Fast Loan UK you can apply for unsecured borrowing with us even with bad credit. We work differently to other online lenders in that we’ll treat your application fairly and fully assess your ability to pay through an affordability assessment. We do perform a credit check, but this is just one part of our lending approval process. If you can demonstrate you can afford to pay and sustain the repayments you require, there is every reason we can approve your loan application.
How You Can Choose an Alternative to Log Book Loans
There are many reasons why you might choose logbook loans in the UK and it depends on how much of a risk you want to take. If you’re thinking about using personal property of value to guarantee a loan, you’ll need to consider the possibility that if the unexpected happens the lender will use it to pay off the loan. If you are happy with the risks involved in potentially losing this property, then a logbook loan can work out well for you as long as you maintain repayments.
Like logbook loans, any form of borrowing is not without its risks, so we recommend if you want to apply for our unsecured alternative borrowing to consider your financial situation first. If you need the funds for a short term circumstance or in an emergency, you should always look to resolve this without borrowing further money. Check to see if you have any available savings or credit you can use instead. Whilst we aim to help as many people as possible get the loan they need, we will never approve a loan if it may lead to you having further financial difficulties.
As we are Financial Conduct Authority (FCA) approved lenders, we follow responsible lending guidelines. To be successful with your application today, you will need to demonstrate your affordability to maintain repayments. We’ll assess your current income and outgoings to determine if you can afford the repayments on our log book loans alternative option. We do not offer guaranteed acceptance loans, so if we cannot see you can afford the loan you apply for, we will have to decline your application.
Eligibility to Apply Now for our Alternative to Logbook Loans in the UK
We’re happy to welcome applicants from a wide-range of financial backgrounds as an alternative to log book loans. To apply today, you will need to:
- Be at least 18 years of age
- Be a resident of the UK
- Have a bank account and valid debit card
- Receive a regular income from employment
As long as you can meet the above, you can fill in our application form and we’ll assess your suitability straight away for an alternative to logbook loans in the UK. As part of your application, we may require supporting documents such as proof of identity, proof of address and your most recent bank statements. A personal Customer Care Manager will be assigned to you and they may contact you for a quick 5 minute talk about your application. After a financial assessment and full credit check are performed, we’ll send you your digital loan agreement to sign if all approved. Once signed, you could have the agreed funds in your bank account within 15 minutes.
If you still have any questions about log book loans and want to find out more about our lending options at Fast Loan UK, please get in touch today. If you’re ready to start your application, just click apply now and we can provide you with an agreement in principle immediately for the loan amount and terms you want.
You can find out more about our commitment to responsible lending here and more information about us as FCA approved direct lenders.