Unfortunately an increasing number of people are feeling the need to lend money. Whether it is an unexpected bill or catalogue fees owed from Christmas shopping; the reasons are endless. Nevertheless, the good news is that there is help at hand in the form of a car log book loan. This has become an attractive lending solution for people all over the country. Flexible repayment terms are possible, you can borrow a significant amount of money and people with a poor credit history can be considered as well. However, despite the evident benefits, this is not something you should rush into. There are several key questions you need to ask the lender in question before you proceed. Read on to discover what they are…
What do you need to see?
It is vital to know what documents you are going to need to provide, especially as you may need to do a bit of digging or make a few phone calls to get your hands on them. You will definitely need your V5 logbook. Nonetheless, anything in excess of this is dependent on the lender. You can typically expect to provide some form of photo identification, such as a Driving Licence or Passport, as well as a recent utility bill and proof of your income, such as a tax return or a recent payslip. This is generally the bare minimum that will be asked of you. Some lenders may require more.
Will you contact my employer?
It is possible that the lender may want to contact your employer. This does not happen all of the time, but it is definitely not something you should rule out. Nevertheless, a company should never contact the person you work for without asking for your permission first.
What happens if I can’t make a repayment?
You should never sign a contract without being fully aware of what happens should you fail to make a payment. This is often how individuals find themselves in a disastrous situation. They rush into the loan because they are desperate to receive money and therefore they ignore all of the small print. So, what can happen if you do fall behind on your repayments? The answer is that it differs from company to company. One lender may be lenient and allow one late repayment (rarely does this ever happen), another may charge you for every day you are late, whilst another may seize your vehicle.
Are there any penalties for repaying my loan early?
This may sound like a bit of an odd question. After all, why would a company punish someone for paying back the cash they owe quicker than expected? The truth is that there are many companies who are simply looking for anyway to make extra money and thus they put early settlement penalties in place. These are highly troublesome because if you hold onto the money there is every chance you will simply spend it instead. Thus, you should try and avoid a company with early settlement penalties at all costs.
These are the four main questions you should ask any lender before agreeing to a car log book loan. Don’t make the mistake many other people do by merely looking at the amount of money they are going to receive and not considering anything else.
The worst thing you can ever do is take out a loan without being fully aware of everything from the repayment terms to the penalties set in place. This article provides you with some key questions you should ask before agreeing to a car logbook loan.
