The lies people tell about logbook loans

Since their grand entry into the UK market, logbook loans have been the subject of great debate. A lot of lies, misconceptions and outright rumours have been bandied about with the sole intention of discrediting logbook loans as the perfect loan instrument for individuals reeling from a poor credit score. Amid all these unfounded lies, logbook loans have continued to soar in popularity not only in the UK but also in other parts of the globe. In an attempt not to have the naysayers and liars have their day, we are going to look at some of the most insane lies or untruths that people say about logbook loans.

Lie #1: Logbook loans are for individuals with bad credit

This is a fallacy of great magnitude. While logbook loans were unveiled with the sole intention of catering to the plight of individuals with bad credit or those who could not avail a loan from high street banks, it would be foolhardy to blankly say that logbook loans are entirely designed for individuals with bad credit. In fact, those with no prior history and whose attempts to get approved for a loan has been an impossibility have found homage in logbook loans. Anchored on the promise of no credit checks, logbook loans have been instrumental to both UK individuals with bad credit and no prior credit history not to mention those who simply need faster approval irrespective of their credit status!

Lie #2: Your boss will be consulted prior to your loan being approved

Of course, as human beings, we don’t like the idea of our personal matters being broadcast to the world; the worst of all our bosses! The idea that logbook loan lenders consult your employer or boss before they can approve your loan is a lie with no basis. All that logbook loan lenders require from you is proof of income and this can be achieved through the provision of pay slips or even bank statements. The idea therefore that bosses are consulted is hogwash.

Lie #3: Getting approved for a logbook loan is a tedious process

Unless you’ve never applied for a loan from a high street bank, you will agree with me that applying for a logbook loan is the simplest of processes. The requirements are pretty simple, application convenient and approval done within hours! No mountainous paperwork to deal with or credit checks that run on end. You simply need to be an owner of a car, a person of legal age, earning some form of income, a citizen of the UK and you are good to go.

Lie #4: One single missed payment and your car is gone

Of course, that is not true. Logbook loan lenders repossess vehicles as a measure of last resort. Repossession is usually done when efforts to contact you have been futile and you have gone MIA for months on end.

In light of the above and many others not covered here, it’s correct to say that there exists a lot of misinformation about logbook loans out there. The good thing, therefore, is to enlighten yourself as much as possible prior to taking out a logbook loan.