Things to do prior to applying for a logbook loan
Heard about logbook loans and want to give it a try in the foreseeable future? Of course, there is nothing wrong with being prepared for the unexpected. You probably have taken the trouble to learn about how logbook loans work and what not. However, to avoid any trouble and even get a better deal for yourself, we recommend that you do the following before you take the plunge.
Make sure your cars MOT certificate is in order
Don’t be cheated. A cars Ministry of Transport (MOT) certificate that is actually out of date will pose problems for you and could make your application fail. It is, therefore, important to ensure that your car is in good condition before applying for a logbook loan. It serves to improve your chances of approval as well as the amount of money you qualify to apply for.
Have all the proper documentation ready
Do your research and prepare all the documentation required before making a logbook loan application. You don’t want delays in logbook loan applications because you don’t have all the required documentation. Get the required bank statements, utility bills, identity card copies, wage slips and MOT certificates ready prior to making an application. It ensures that the process is smooth and that you get the required amount of money within a short period of time.
Be on top of servicing as well as repairs prior to applying
A car that has mechanical problems greatly reduces your prospects of being approved or getting access to the kind of money you anticipated. Ensure you service your car on a regular basis and that it’s in top shape. Even a second-hand car buyer wouldn’t buy your car if it is never serviced or has a lot of mechanical problems. With that in mind, what makes you think a logbook loan lender will accept it?
In conclusion, do not be excited and sign the contract with your logbook loan lender without reading the fine print. You need to understand everything about the loan before committing yourself to the contract. Understand what will happen in the event that you miss a payment and how it will inadvertently affect your budget. At the end of the day, it’s better to be safe than sorry.