Logbook LoansLogbook loans – if you own a car or other vehicle and need cash in a hurry then a bad credit logbook bad credit loan is  an option. You keep driving your car or vehicle but use its value as security against the loan. The funds can be issued the same day plus what’s more there are no credit checks.

A logbook loan is ideal for people who may currently have bad credit as it is secured against your vehicle’s logbook and hence represents a greatly reduced risk to the lender. Your vehicle should be clear, or nearly clear of finance, the amount you will be able to borrow will be based on the value of your vehicle.

Logbook bad credit loans are normally available very quickly with funds often paid to you within 24 hours.


There are no credit checks with a typical logbook loan. The applicants ability to repay the loan will be assessed and any vehicle owner will be eligible as long as the vehicle meets the criteria which is usually along the lines of:

  • A vehicle which has a V5 logbook.
  • Maximum age limitations – often no more than 10 years old – to ensure sufficient value.
  • Clear or nearly clear of any existing finance.

The lack of a credit check makes these logbook loans particularly attractive to the bad credit marketplace as even those with CCJs, arrears, defaults, refused credit are still eligible. All the lenders are going to look at is the applicants ability to repay and the value of the vehicle to ensure the loan can be guaranteed.

Typically these loans are advertised as between £250 and £50,000 but, in reality, the amount able to be borrowed will be dependent on the value of the vehicle, you won’t be able to borrow more than it’s worth.

How Does A Logbook Loan Work.

The way that a typical logbook loan works is as follows:

Initial application is online – apart from the usual information about yourself full details of the vehicle will be required too … usually manufacturer make and model, registration number, registration year and mileage. Using this information the potential lender will value the vehicle and provide a loan quotation.

If this quotation is acceptable and a decision is made to go ahead you’ll normally be required to visit a local office or arrange to meet a local representative to complete the paperwork and hand over the logbook.

Once done the loan is ready to transfer and is usually done so immediately – one of the reasons for popularity of the logbook loan is speed … often the entire process is completed within 24 hours.

The vehicle remains with the borrower and they keep using and driving it as normal whilst making the repayments on the loan. Once the loan has been repaid the logbook is handed back to the owner of the vehicle. However, default on the repayments and the lender has the right to sell the vehicle and recover the amount owed to them from the proceeds of the sale.


What we do say though is be careful with logbook loans – interest rates can be high and total amount repayable can be significant. Add to that the fact that your car or vehicle will be sold if you do not keep up repayments and you can see that it may not be the best form of borrowing or best option. As with all loans, research carefully and examine all other options before you decide – and also think about whether you actually need to borrow at all as there may be other ways to raise the money you require.