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If you are considering applying for a this type of loan, it would be advisable to compare logbook loans. The term logbook is familiar to residents of the United Kingdom, but it may be a new concept to others. Basically a logbook loan is a secured loan where the borrower relinquishes the logbook of his vehicle in exchange for cash that is a short term loan. The advantage to the borrower is that he can keep his car and get the cash. This advantage does come at a price. If you have a bankruptcy or other undesirable credit history and are not able to get credit, a logbook loan may be the answer to your problem.

The term logbook is mostly unknown in the Untied States of America. Logbook originally referred to a ship's log where the time and distance traveled by the ship would be logged into a book. As often happens, the meaning of logbook has been expanded to include reference to a vehicle's registration certificate. A car owner will only gain possession of the vehicle's logbook when he has fully paid for the car and there is no financing or other lien attached.

In the Untied Kingdom, Australia and Ireland a vehicle's registration certificate is called a logbook. The person in need of cash gives the lender his car's logbook as collateral for the money to be loaned. The borrower must own the vehicle outright. By holding the logbook, the lender is assured that the car will not be sold. Therefore, the lender can take possession of the car if the borrower defaults on the loan.

There are many sources for consumers to obtain a logbook loan. For this discussion lenders Mobile Money and V5 Loans will be compared. Regarding locations and branches, Mobile Money has several, more than thirty, branches in the United Kingdom. The Website states that borrowers must reside in England or Wales. V5 Loans have many branches in the UK, but also have locations in Scotland and Northern Ireland. If residency is required by V5 Loans, this is relevant information.

Mobile Money charges 385.2 percent interest and V5 Loans charges 378.3 percent. The duration of the loan can be from one day to a maximum of six months at Mobile Money. For V5 Loans the duration of the loan can be from one day to twelve months. Depending on the repayment schedule, a borrower may be well advised to take the shorter term loan. The longer the life the loan the more interest charged.

Logbook loans are designed to meet the needs of a consumer with a serious cash flow problem. It is a certain level of extreme need that prompts a consumer to seek this type of loan. The money is often needed due to some unexpected emergency. One can only hope the cash flow issue is short term as the borrower will need a good deal more money to repay the debt.

V5 Loans will lend up to seventy-five percent of the car's value. The competitor's Website does not clearly state the percentage value of the vehicle that it will loan. This may depend on the mileage, the condition and the age of the car. Based on the value of the vehicle, the maximum amount that both companies will loan is 25,000 pounds. There are other lenders with a higher maximum, but the interest charged is also greater.

Borrowers are attracted to logbook loans because they can get the cash immediately. The approval process is very quick and not dependent on a credit report. Compare logbook loans to make sure you are making the best choice for your situation. Logbook loan borrowers will pay significant interest but can still minimize the loan's cost by comparing various competitors.

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