Welcome to Care Loans
Being a form of a secured loan, a logbook loan is designed for car owners who transfer the ownership of their vehicles as a security for the loan. This depicts a perfect modern example of a security bill of sale. The good thing about this loan is that throughout the tenure of the loan, you get to keep your car, and it’s still business as usual. The only thing you give away is the logbook which you will take back after you clear the loan.
How they work
If you are in urgent need of cash, and you’ve got a poor credit history, then a logbook loan is probably the best choice. It’ll save you from the hustle of banks and allow you quick access to money. After all, the process of approval can take less than 24 hours and is very simple. All you need is the logbook which shows that you truly own the car.
The amount you borrow is always dependent on the value of your car. Therefore, ensure you take good care of your vehicle and that it is in good shape. Logbook loans operate on the “newer your vehicle the higher the amount you will qualify for” principle. However, it does not mean that if your car is old you are completely written off. You can still qualify for the loan if you negotiate with your lender and prove that the vehicle is still in good working condition.
Logbook loans have a number of attractive features that makes them a choice for many.
- Quick cash- logbook loans are a fast solution to your financial problems. They’ve got a very simple and fast process and thus are the best option for an emergency.
- You do not need a glamorous credit record to qualify
- The car remains in your custody and you can still use it for your normal routine
- May better your credit score if you pay the premiums in time.
It comes without saying that a logbook loan has an ugly side that can put you in deep trouble. Here are some of the cons it involves:
- You could lose your car as the lender can reposes it if you fail to complete your payments. What’s worse is that the car will be sold to cover the amount you failed to pay. If the purchase fails to cover the whole amount you will still be liable for the remaining amount. You therefore do not want to face this nightmare, so ensure you can pay up the loan before you borrow.
- Failed or delayed payments can further damage your credit history making them worse than they already are. Eventually creating a lasting negative impact when you want to do any other type of borrowing.