Logbook loans have been extremely popular ever since their advent in the country. However, with all good things, these loans are also shrouded with various myths that people have come up with, preventing the common folk to take full advantage of this great opportunity.

To make a good decision, you need to be updated with the facts, so here we are, debunking the common myths that surround logbook loans and retelling the facts as they are.

Myth #1:

If you have a bad credit score, you are not eligible for a logbook loan

Debunking the Myth:

The fact is quite the opposite. You are allowed to apply for a logbook loan, no matter what your credit score. This is because the decision to give a loan depends on your affordability, not just your credit score. What lenders need is that you have a vehicle that is in good condition, you are of a legal age, and you have proof of your address and income. You may be surprised to know that there are even some lenders who will grant loans to people who have had CCJ.

Myth #2:

The application process of a logbook loan is complicated, and you won’t know when you will get the money.

Debunking the Myth:

Well, now how about we tell you that you can get the process done and the money lent to you in a single day? And as early as one hour? Applying for a logbook loan is the easiest process, and you can simply apply online, get an appointment, and viola! You have your loan. Because of this quick and easy process, logbook loans are great if you need cash in an emergency.

Myth #3:

If you have a van or a motorbike, you will not be granted a logbook loan .

Debunking the Myth:

Logbook loans are not just provided for cars. You can get the loan no matter what your vehicle is. It just has to be in a good condition, and you need to show the proper paperwork to prove the ownership of your vehicle. Generally, your vehicle would need to be at least ten years old, and have no financial attachment.

Myth #4:

If you get the logbook loan, your vehicle would be in possession of the lender.

Debunking the Myth:

In reality, the only thing that will be in possession of the lender will be your logbook (V5). You will be allowed to use your vehicle as per usual, without the lender hindering you in any way. However, you will not be able to sell the vehicle before the loan is paid.

Myth #5:

If you apply for a logbook loan, your employer will be consulted.

Debunking the Myth:

This is probably the top myth why people who believe it stay away from logbook loans. The only thing for proof that logbook lenders ask for is a bank statement and your pay slip. Your boss will not be notified or consulted in any way.