Circumstances under which getting approved for a logbook loan might be a tall order

Granted, the introduction of logbook loans in the UK market was a huge victory to individuals who from time immemorial were victims of their own credit history. Before logbook loans went mainstream, applying and getting approved for a loan especially if you had a poor credit rating was a pipe dream. Many are the times when individuals found themselves on the rejected list simply because they had a poor credit rating. Discrimination based on one’s credit score was so prevalent that even a number of individuals developed depression. However, this is no longer the case and logbook loans have now given every individual an opportunity to apply and get approved for a loan their credit history notwithstanding.

For long, the assumption has been that logbook loans are open to everyone. The belief has been that since credit scores don’t play a role, being rejected for a logbook loan is an impossibility. However, this is not the case as there are circumstances under which a person’s application for a logbook loan might not be approved. Wondering what these circumstances are? Well, worry not.

If you are below the age of 18 years

Are you months away before you hit 18 years and badly want a logbook loan? If yes, then I have bad news for you. The law requires that you must be 18 years and above as this is the legal age for which you can be able to enter into contractual agreements. If you are below the age of 18 years and seeking for a loan, the lender will not approve your application because you are not of legal age.

If the car you wish to set up as collateral is not registered in your own name

Thought you could use your friend’s car to get a logbook loan? Well, you need to think again as the law regarding logbook loans clearly stipulates that the car you set up as collateral needs to be registered in your own name. The logbook loan you provide the lender should be in your own name and not the name of any other person. The long and short of it is that you cannot use someone else’s logbook to acquire a logbook loan.

If you are not a resident of the UK

Think you can just come for business or pleasure in the UK and apply for a logbook loan? If you’ve been concocting such ideas in your head, you need to smell the coffee as only individuals who reside in the greater United Kingdom can be approved for a logbook loan. You must be a citizen and provide proof of residence before you can be considered for a logbook loan.

If your car is not in good condition or if it has been on the road for more than 10 years

The car you set up as collateral needs to be in good condition. It is the reason UK logbook loan lenders require that you provide a MOT certificate prior to approving your loan. The car also needs to not have been in use for a period in excess of 10 years.

In addition to the above instances, you should not provide false information and your application need not be laden with errors of omission and commission. If it is, then your application might not be approved!