We have recently started to get some requests from previous customers to ask if they are able to get a loan secured against their car or vehicle. These types of loan are known in the industry as “logbook loans” or bill of sale loan agreements. Often they are used when larger loans are required from £1000 plus.
For people with really bad credit
They offer an alternative type of loan for those with a blemished credit record and have been refused credit with a regular personal loan.
What are the risks?
Rates are quite expensive at around 100% APR and if you were unable to repay your loan or you fell behind with your loan payments you could be at risk of losing your car to repossession. However, for some people they do offer a lifeline when no other options exist.