Tricks to getting approved for a logbook loan
The largely accepted concept is that getting approved for a logbook loan is a foregone conclusion considering that no credit checks are done. This misrepresentation which has gained wide acceptance is the reason most people are in utter shock when their application for a logbook loan is declined. Granted, having bad credit is not an obstacle to getting approved for a logbook loan. However, there are instances where a customer is declined due to not having regular income to minute things such as inaccuracies in the application form.
That said, what are some of the tricks you can utilise to ensure you get approval when applying for a logbook loan? One thing that is for sure is that you simply need a car as collateral to secure a logbook loan. However, not all cars are accepted as collateral. To increase your chances of approval, ensure that your car is in good condition. Take your car for regular repair and maintenance. Above all, you should furnish your logbook loan lender with a Ministry of Transport (MOT) certificate to ascertain that the car is in good condition.
Ensure that the car you intend to use as collateral has not been on the road for over a decade. Logbook loan lenders insist on the fact that a car to be used as collateral shouldn’t have been on the road for more than 10 years. The amount of money you are entitled to under a logbook loan is dependent on the value of your car and therefore it is very important that the car be in good condition.
In addition to your car being in good condition, ensure that it is insured. Of course, your lender is not in the business of making losses or hoping for the best. A person whose car is comprehensively insured stands a great chance of approval than someone without automobile insurance. You need to ensure that the cars insurance and tax details are in order prior to applying for a logbook loan.
Thirdly, have proof that you receive a regular stream of income. Unemployed individuals at times get the going tough especially when they are seeking to get approved for a logbook loan. If you are in self-employment, ensure that you submit all necessary documentation that show proof that you are capable of repaying your loan. No lender wants to get into business with a potential defaulter. Stability of income greatly improves your chances of approval.
Last but not least, ask for what you need and you can comfortably repay. Even if your car is worth more than what you need at the moment, do not be tempted to borrow more than you actually need. Applications for lower amounts of money are easily approved compared to application for large amounts of money. Lenders are also looking for ways to cushion themselves and mitigate the risks as much as possible.
Lastly, endeavour to improve your credit rating. We understand that logbook loans are bad credit loans. However, if you have an average credit score, your chances of being approved without question are higher than that of a person with a history of CCJs or defaults!