Guide to logbook loans

With more and more of UK residents experiencing credit problems, seeking for loans from traditional lenders became a daunting and frustrating task to many. Bad credit made it almost impossible to secure credit from traditional lenders. However, logbook loans have made it pretty simple, fast and easy for people with a poor credit history to get access to cash they need by using their cars as collateral. It’s a short term loan that does not require any credit checks and borrowers are only required to use their cars as collateral to access the money they require for whatever need.

Amount of money you can borrow and period of repayment

Basically, you can borrow from a minimum of £500 to a maximum of £50,000 depending on the current value of your car and the amount of money that you need. Lenders can advance you up to 75% of your car value and you have up to 78 weeks to make repayments based on the agreement you have. However, it’s important to note that there are a number of lenders that allow you a period of up to 3 years for repayment. As such, you need to take this into consideration when choosing for a logbook loan lender to do business with.

What is the interest rate charged?

Ordinarily, logbook loans tend to attract a high interest rate as compared to traditional loans. This is because the borrower has a bad credit and is viewed as high risk. The annual percentage rate (APR) falls somewhere around 400 though some logbook lenders charge a higher amount. The key to getting a better rate is in reading the fine print of the terms of the loans and do business with a lender that is trusted and reputable.


At a glance, you need to be a resident of the UK, be of legal age and own a V5 document. In other words, you need to legally own a car that is free from any financing and has not been operating on the road for more than 10 years. Other additional requirements that are of essence to fast track the loan include:

Simply put, so long as you legally own a car with no charges to it, your loan application is always a guaranteed thing.

Are there any risks?

The risk of taking logbook loans occurs in the event you fail to make your repayments or fall way back. Your lender can repossess your car and sell it to recoup their money. The interest rates are also very high which makes the borrower pay almost twice the amount they borrowed.

Is it the right choice for you?

If you have bad credit and are pressed for cash, going for logbook loans is perhaps one of the best options. No credit checks are done, approval of the loans is done within hours and there are no questions as to what you need the money for.