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Do You Need to Place Your Car as a Collateral to Get a Logbook Loan?

Are you having financial problems and need some money quick? By placing something valuable as a collateral, you can get a higher amount of money and get accepted much easier, even if you have a bad credit rating or none at all.

Of course, different valuables can be put up as a collateral, or security against the loan. Some loans require that you put your entire house as a collateral, while for others it will be enough to only put some of your jewelry as loan security.

One type of secured loans has become very popular in United Kingdom in recent years, what with the ever increasing need for quick loans and everything and that is a logbook loan. This type of loan requires that you put, you guessed it, your car, or rather the logbook document that the government will issue you, as a collateral.

Logbook, or V5 is a document issued by the government to a car owner that contains some crucial information about his or her vehicle, such as the chassis number, registration information, engine number and more. This document is very important as it serves as evidence in a number of occasions, like selling a car, or claiming insurance.

However, you can't get a logbook loan, unless you leave the logbook with the lending company. A lot of potential borrowers decide to try for another approach for getting money, rather than risk their car getting repossessed if they default. But, the truth is, even this risk is worthwhile if you want to solve some financial problem and this way, you can actually apply for a considerable amount. For instance, most lending companies offer logbooks in the range of 500 to 50.000. And this money can be collected from your bank account in just 24 hours after you've been approved for a loan.

Of course, it isn't like you will be left without any sort of document regarding your car for the duration of this loan. Lenders understand that their customers may have the need for a logbook during the loan term, so they leave you a copy of it. While you can't do as much with it as you would with an original, the copy can still help in certain situations.

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