Can anyone apply for a logbook loan?

It goes without say that logbook loans have given UK individuals with a poor credit rating a new lease of life in so far as getting access to credit is concerned. In the past, only individuals with a good credit history could avail a loan from high street bank or financial lender. In essence, those with a poor credit rating had to contend with one rejection after the other. Then came logbook loans and the situation changed for the better. Those who needed cash advance and did not prefer short loan products such as payday loans finally had an alternative.

The unveiling of logbook loans was received with pomp and glamour. Individuals with a poor credit rating could now apply and get approved for a logbook loan without a care in the world. However, the question has always been whether anyone can apply for a logbook loan or not. The direct answer to this question is yes. Anyone can apply for a logbook loan so long as they are of age, UK citizens and have a car that is registered in their own names.

However, from another perspective, we can say that logbook loans are designed for those people who have reached the end of the road or whose credit score is so bad that they cannot avail any other loan instrument. When we look at it from that perspective, then we can say that logbook loans are not for everyone. Yes, there are no restrictions to who can apply for a logbook loan. Whether you have a good or poor credit rating is not an issue considering that credit checks are done for ceremonial purposes and not as a way of determining who qualifies or not for a loan.

The group of people who largely benefit from logbook loans are those that have a history of defaults or CCJs and those that would wish to rebuild their credit score. Even those without a prior credit score will find applying for a logbook loan attractive because financial lenders rarely approve them as there is no way of telling how financially responsible they are. With a car that is free from any finances, application of a logbook loan is as simple as a walk in the park. Add to that the fact that you might be having bad credit and there is no reason as to why you should not take advantage of logbook loans!