Applying for a Bad Credit Logbook Loan?
Do you have a poor credit history and need a logbook loan? LoanOnYourCar.com may still be able to provide a loan, despite your bad credit.
Treating Every Customer Fairly
With every easy new logbook loan application, the first thing we consider is the value of the vehicle, as this is secured against the loan. This enables us to take a more flexible approach than banks and other credit providers in approving a loan application.
The second (and fundamentally the most important part of the application process) is ensuring your monthly repayments are affordable and manageable in line with your current monthly financial commitments.
We fully appreciate that many customers will have a less than perfect credit history. In many cases, bad credit will present a significant hurdle in obtaining a loan. However, we believe that a poor credit rating need not be a barrier to getting a loan and that poor credit history can be turned around!
Soft Credit Check
At LoanOnYourCar.com, we take both our commitment to treating our customers fairly and responsible lending very seriously. As part of our application process we will always undertake a soft credit check.
What is a Credit Score and Why is it Important?
The check will return a credit score, which is a point-based system made up of the borrower’s financial history. This score is used to tell us if the borrower is eligible for a loan or credit.
The credit score is calculated using a range of information, including:
- All recent credit and utilities applications made from current or previous addresses
- All previous debt history, including any County Court Judgements (CCJs)
- Individual Voluntary Arrangements (IVAs) or bankruptcies.
The credit score also shows how the borrower has maintained repayments to their credit cards, store cards, loans and mortgage.
Nearly all lenders will use a credit score to approve a loan application and in many cases, it will affect the cost of credit and the APR (Annual Percentage Rate).
Obtaining credit in the future could be difficult with a poor credit score. Many lenders will consider a poor score a higher risk, so it is more likely any future borrowing will come with higher interest rates.
Looking Beyond Your Credit Score
A credit score isn’t the only thing that we look at when reviewing a loan application.
We use different criteria to decide whether to land and to build a profile of the borrower, including:
- Any history the borrower may have with us
- The information provided on their credit application
- Existing credit
- Current financial commitments
- Employment status
All these factors give us an indication of the borrowers ability to pay the loan.
Assessing your credit score
The policy of undertaking a soft check to assess the loan application is not designed discriminate against people who have had bad or poor issues in past.
Our decision will be based upon results and balanced with future potential for borrower honour commitment.
When we review report, consider CCJ's debt management plans, depending on individual circumstances, case by basis. However, if an shows Individual Voluntary Arrangement [IVA] bankruptcy we'll unable provide any credit.
A new logbook loan could boost your credit score
The policy of undertaking a soft credit check to assess the loan application is not designed to discriminate against people who have had bad or poor credit issues in the past.
It is important to remember that making loan repayments on a new logbook loan on time shows positive credit intent, this can help repair a credit rating, thus making it easier to obtain credit in the future.
We encourage every borrower to take the time to consider if a logbook loan is the correct loan for them and emphasise in every application that the loan will be secured against the vehicle and missing payments could put the car at risk of repossession.
Ready to proceed or got a question?
Enter your vehicle registration for an immediate decision in principle; or
Call us on 0333 577 5000 and speak to one of our expert loan consultants. We can offer advice on rates, repayments and our terms & conditions
Thank you for your interest in LoanOnYourCar.com and we look forward to hearing from you very soon.