Bad Credit Logbook Loans?

We may still be able to provide a Bad Credit Logbook Loan.

We fully appreciate that many borrowers may have a previous poor credit history which is making it very difficult and expensive in obtaining a loan.  However, at we believe that a poor credit rating need not prevent you from applying for a loan and that poor credit history can be turned around. 

We will review each application on a case by case basis

With every Logbook Loan application, the first thing we consider is the value of the vehicle as This will enable to take a more flexible approach when approving the loan.  Then we review the monthly repayments to ensure they are affordable and manageable in line with the borrowers’ current monthly financial commitments.  Then as part of our application process, we will always undertake a hard credit check. 

What is a credit score?

The credit score is a point 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 information based on all recent credit and utility applications made from current or previous addresses, and all previous debt history, including any County Court Judgements (CCJs), Individual Voluntary Arrangements (IVAs), or bankruptcies. It also shows how the borrower has maintained repayments to their credit cards, store cards, loans, and mortgage.

Its not just your credit score that matters?

A credit score isn’t the only thing that we look at when reviewing the loan application.  We want to build a profile and use different criteria to decide to build a profile of the borrower.   We will also review existing credit, current, financial commitments, and employment status which gives us an indication of the borrower’s ability to repay the loan.

We will never discriminate against people who have had bad or poor credit issues in the past.  Our decision will be based upon the results of the check and balance this with the future potential for the borrower to honour the loan commitment. 

When we review the credit report, we will consider CCJs and debt management plans depending on individual circumstances and on a case-by-case basis. 

Please note:  We will be unable to provide any credit for Individual Voluntary Arrangement [IVA] or bankruptcy.

A new Logbook Loan could boost your credit score?

It vitaly important to remember that making loan repayments on a new Logbook Loan on time, shows positive credit intent, and this can help repair the borrowers credit rating making it easier to obtain credit in the future.


Logbook Loans Explained

A logbook loan is the ideal option for car owners who want to access the equity in their automobile through a same-day cash loan while preserving full personal use of their vehicle. Based on a CAP HPI or other industry expert market appraisal, the minimum and maximum loan size will normally range from £ 500 to £150,000 and up to a maximum of 65% of the car’s trade value.

Depending on the source of the Logbook Loan, the loan periods offered by lenders range from a minimum contract duration of 12 months to a maximum of 60 months. Many lenders permit the borrower to make overpayments, pay the loan off early “100%” penalty-free, and pay lowered interest rates on the lesser sum.

When a borrower takes out a logbook loan, the lender assumes ownership of the vehicle in its entirety. Even though the lender will remain the legal owner until the loan is paid in full, the borrower can continue to drive the vehicle as usual during the loan payback period.

Most lenders demand the logbook, commonly referred to as the V5C registration document, to confirm your ownership of the car.

Please keep in mind that a logbook loan is a kind of secured loan where the title to the car is used as the principal source of security. Several types of vehicles, including cars, vans, and motorbikes, are eligible as collateral for logbook loans. Logbook loans do have high interest rates and are secured by the vehicle, so if payments aren’t made, the automobile may be repossessed.

As a result, it is wise to consider all of your options before making a logbook loan decision.


What Happens When You Take Out a Logbook Loan?

Lenders who make loans based on a car’s title calculate the loan amount depending on the car’s current market value. Most lenders will rely on CAP, which is widely acknowledged by auto dealers, finance experts, and other industry professionals as the most precise industry expert. Lenders will use a select network of industry experts for the valuation of classic and vintage vehicles. These experts will review the pertinent information and investigate the provenance of your vehicle, including any original purchase records, service records, and private sale records that may be relevant.

The maximum logbook loan amount is often more than 65% of the trade value, or a specified proportion of the value of your car.

The length of time it takes to approve a logbook loan will greatly depend on the lender, the type of legal document used to secure the loan, the location, and whether the lender uses digital technology. At the moment, loans typically last a few hours to a few days.


The Function of a Bill of Sale in a Logbook Loan

A consumer credit agreement and a bill of sale were used to secure the loan when the logbook loan was first made. A bill of sale is used to formally transfer ownership of an object from one party to another.

By including information about the car, the time, location, and loan amount, the bill will also serve as proof of the transaction.

However, the borrower will be required to return the V5C logbook and, frequently, the spare key. The borrower transfers full ownership rights to the car to the lender upon execution of the two contracts.

The Bill of Sale will be valid after being stamped at the Royal Courts of Justice if this is done within 7 days. Additionally, when dealing with a Bill of Sale, debtors have few alternatives for legal recourse.

Importantly, the lender has the authority to recover the collateral without a court ruling if the borrower skips two payments.

It’s significant to remember that while a Bill of Sale is recognised legally in England, Wales, and Northern Ireland, it is not recognised legally and is not utilised in Scotland.

When the borrower repays their Logbook Loan, the Bill of Sale that served as security for the loan expires, and the borrower regains ownership of the vehicle.


How Do Logbook Loans Fit With HP Agreements?

According to the Consumer Credit Act, the new 21st Century Logbook Loan is now secured against the vehicle through a Hire Purchase Agreement, but the borrower continues to have full access to the vehicle for personal use throughout the loan’s term. In contrast, the original Logbook Lenders secured a loan on a vehicle using the Bill of Sale Act of 1882. Additionally, the Hire Purchase affords the borrower extra protection from repossession because it is based on more modern legislation. In addition, documentation for hire purchase can be signed electronically without a corporate representative visiting the borrower’s house.

One of the earliest direct lenders to provide the Hire Purchase Logbook Loan was A respectable and trustworthy lender in the UK, specialises in V5 Loans, Car Pawn brokering, and other types of Vehicle Equity Release. Instead of a Bill of Sale, like typical Logbook Loan providers, they use a more recent Hire Purchase arrangement for our transactions. puts its reputation and honesty first when it comes to borrower servicing. As a responsible lending company, abides by the Consumer Credit Trade Association’s “Code of Practice,” and the Financial Conduct Authority has granted it full accreditation.


Do logbook loans exist in Scotland?

While logbook loans are available to borrowers in England, Wales, and Northern Ireland, they are not available in Scotland. That’s due to the fact that bills of sale aren’t legally binding in Scottish courts. According to the Consumer Credit Act, loans promoted as logbook loans in Scotland are hire purchase or conditional sale agreements, which may offer additional consumer safeguards than logbook loans obtained in the rest of the United Kingdom.


Are Logbook Loans Subject to High Interest Rates?

In comparison to alternative loan options like a high street bank and other secured and unsecured lenders, logbook loans have higher interest rates. For customers who might not be able to access these lenders due to their credit score or for other reasons, they do represent a viable choice. The additional fees, setup expenses, and early redemption fees imposed by lenders must be understood by borrowers. Before moving forward, kindly double-check that you comprehend this pricing completely. Additionally, there can be additional charges if payments are skipped or the automobile is repossessed.

Logbook loans should only be used as a last option because to the hefty interest rates. You should look into all of your financing choices, including unsecured loans that don’t require collateral, before deciding on a secured loan.


Are Logbook Loans Available to Those with Poor Credit?

Now that logbook lenders are checking applicants’ credit records, people with less-than-perfect ratings may or may not be eligible for a loan. Lenders who use logbooks are aware that they have the legal authority to seize the vehicle in the event that the borrower misses a payment. As a result, they might be prepared to offer credit to applicants who would ordinarily be turned down as being too risky. The new FCA borrower charter, which will go into effect in late 2022, will require lenders to prioritise affordability over credit checks when deciding whether to provide a loan to a borrower.


How Much Can You Borrow With A Logbook Loan?

A logbook loan’s value is based on two distinct factors. First, the value of the car. The amount that can be borrowed with a logbook loan will depend on the worth of your car, as well as the lending rules of each lender and the company’s guidelines. Lenders like will lend up to £150,000, whereas logbook lenders often offer loans in the £500 to £50,000 area. However, lenders will only permit borrowers to borrow up to a certain proportion of the value of the vehicle.

The borrower’s affordability is the second, and arguably the most crucial, factor. According to the new Borrower Charter, all lenders have a duty of care to make sure loans are affordable and are subject to FCA regulation. All lenders will want a complete hard credit report, as well as the delivery of a complete affordability assessment to comprehend the borrower’s income and ongoing obligations, particularly any debts. Before a loan amount can be agreed upon, the lender will want the borrower to provide the last three months’ worth of bank statements in order to make a thorough and accurate assessment.

Even when the car has a sufficient value, the maximum loan amount for a logbook loan will typically be assessed and reduced due to affordability.


How Can a Logbook Loan Borrower Repay the Loan?

Every lender offers their clients the option of making contract-required weekly or monthly payments. The borrower can designate a weekday or a day in the month for the repayment to leave the account, this is also important to note. To give the borrower the best chance of keeping up loan repayments without placing them under strain, the lender must make accommodations.

Every borrower has the legal right to cancel their Logbook Loan arrangement after 14 days because all Logbook Loans are governed by the Consumer Credit Act of 1974. If the agreement is cancelled, the borrower is responsible for returning any borrowed funds along with any interest that has accrued up until the date of repayment within 30 days of informing their lender.

The agreement is therefore legally binding for the agreed-upon term after the 14-day cancellation window has passed. It’s possible that each borrower will decide they don’t want to keep their loan for the entire term and will need to pay it off early. Regardless of the agreed-upon duration, the borrower can typically prepay a logbook loan; however, doing so may result in costs.

It is essential that you know a logbook loan’s repayment requirements in full.

Every borrower is also permitted to make an infinite amount of capital overpayments. When a capital overpayment is received, the lender will deduct that sum from the initial loan principle and then recalculate the loan payback starting with the next repayment due date.


Do I Still Have to Pay for My Car While I Have a Logbook Loan?

Yes, as required by the agreements, the borrower must tax, fully insure, and maintain the vehicle throughout the life of the contract. Without the lender’s consent, the borrower is not permitted to sell the car. When the last payment is made, a financial marker will be applied to the car and then taken off.


Can a Borrower Use One Car as Security for Two Logbook Loans?

No, each car is only eligible for one Logbook Loan. A finance marker will be added to HPI once a lender has paid off a Logbook Loan to alert other lenders and potential buyers that there is still financing on the vehicle.


Vehicles With Finance May Be Eligible for a Logbook Loan?

A logbook loan may be offered by some lenders if a debt is almost completely repaid. Before the borrower may get the remaining sum of the loan, the logbook lender must approve it, and the existing debt must be settled using the revenues of the new loan.


What Will Happen to the Car if a Logbook Loan Borrower Can’t Pay?

The lender will send a “default notice” if a borrower misses a payment on a logbook loan, giving them 14 days to catch up. The borrower must not dismiss the lender’s correspondence or the fact that they are having difficulty making payments on their loan.

If payments are not made on time, lenders have the legal authority to sell the collateral and take it back. A recorded bill of sale can be delivered directly to the borrower without going through the courts.

The borrower is accountable for any outstanding debt if the sale proceeds of the car are not enough to cover it. If the car is sold, the lender must pay the borrower back for any excess value over the loan balance.

Are Logbook Loans Appropriate for Those Receiving Welfare Payments?
If it can be demonstrated that the monthly payments won’t put the borrower in financial hardship, some lenders may agree to grant a logbook loan to beneficiaries. Please research your options before choosing one because there may be others, such as budgeting loans or government advances.

Be careful not to overextend yourself financially because failing to make loan payments could lead to the car being repossessed.


How to Make a Logbook Loan Application

Apply for a logbook loan online or, in some situations, in person at a store with physical lenders. Before you provide the logbook loan provider with your title, make sure they have a Financial Conduct Authority licence (FCA).

Verify that the lender is a member of the Consumer Credit Trade Association (CCTA), a business association that upholds standards for how its members handle their clients.

A direct FCA-authorized UK leading “Logbook Loan” lender is They offer tried-and-true Logbook Loan options for those wishing to borrow money quickly, even same-day, from their cars. You can suggest them with great confidence because they are now rated as the “UK’s No. 1 Trusted Logbook Loan Lender” on Trustpilot. Apply online at or give a professional loan consultant a call at 0333 577 5000 to get started.


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