In a perfect world, poor credit rating would be a nonexistent phenomenon. Unfortunately, we do not live in a perfect world where everything is constant. We live in an imperfect world where various factors affect every aspect of our lives. We cannot be on the same level and neither can we all be financially prudent. On the same wavelength, people face different difficulties that at times make it impossible for them to be on top of their finances. Unfortunate incidences such as incapacitation, layoffs, and job losses mean that individuals at times are unable to meet their financial obligations. Unfortunately, this is not taken into consideration when a person’s credit score is formulated.
The result has been a growing number of people being weighed down with a poor credit score because of circumstances beyond them. If you live in the UK or any other part of the world, you will agree with me that getting a loan approval or contract phone approval is a tall order. You are forced to pay a hefty upfront fee before you can be approved for a loan. This indeed has been a subject of great concern especially among UK individuals that seek to get a loan for whatever reason. Are you that kind of a person who is facing problems availing a loan simply because your credit score is in debilitating status?
Are you looking for a loan instrument that won’t take into consideration your credit score? If yes, V5 loans are your best. V5 loans or logbook loans are a specific kind of loans that are secured using a person’s car. What this specifically means is that you avail your car logbook to a lender before you can be considered for a loan. However, not everyone can qualify for a logbook loan. To qualify for a logbook loan, you need to be a resident of the United Kingdom, provide proof that you are over and above the age of 18 years and that you are in employment or receive some form of income.
Additionally, the car you wish to set up as collateral should be in good condition. In essence, it should have been in use on the road for more than 10 years. Of course, the lender will have to check it out prior to accepting your loan application. It is also the reason why you are required to produce a Ministry of Transport (MOT) certificate prior to logbook loan approval. Other details you need to produce include insurance details, your bank statements, tax details as well as proof of address.
Once all these details have been provided, you can get approved and get access to cash within 24 hours depending on the lender you are doing business with. You do not have to have a perfect credit score to be considered for a logbook loan. The absence of credit checks means that anyone can apply and be considered for logbook loans even if they have bad credit. However, while logbook loans have been a blessing of sorts to UK individuals with a poor credit rating, there are also a number of risks as relates to them. For one, you can lose possession of your car should you not be able to meet your obligations monthly. Secondly, penalties might make you to repay a higher amount than was originally intended. Thirdly, if the proceeds from the sale of your car are not sufficient, your lender can sue you to pay the deficit.