How to Make Your Logbook Loan Application Failure-Free

It's a well-known fact that logbook loans have a high approval rate.

However, this makes most people complacent and they go through the process half-heartedly. Even with its high approval rate, there is still a chance you will get rejected based on technicality. So, just because the process is easy, doesn't mean you shouldn't take it seriously. To ensure a failure-free application, you still have to do your best.

Here at Leon Loans, we will do our best to help you throughout the process to ensure a favourable outcome. To make the most of the situation, we ask that you also do your part as the borrower to ensure that there are no hitches and delays during the process so you will get your money by the day's end. Just follow the tips listed below and everything should turn out fine.

Be Honest

Most applicants fail other loan applications because they tend to gloss over their credit standing. Remember though, since logbook loans are a popular option for people with bad credit, there is no need to be dodgy when it comes to your financial status. Lenders of logbook loans are used to people with poor credit standings, so just be honest. Don't exaggerate your income and don't try to downplay your credit rating.

Remember they have documents pertaining to your credit standing and they have also done a sufficient background check. If they ask something, it's just them confirming information. If they ask you a question, you lie and it doesn't match the documents they have, you will be seen as a problematic client and your chances of approval will decline.

Prepare All Documents

As with many important things in life, you should never apply for logbook loans unprepared. Remember to have your car's logbook, MOT, insurance papers, proof of income, valid ID, proof of current address and all other requirements with you beforehand. Also, make sure that there are no loans taken out against your car before you apply. This would save you a lot of time and effort.

Car Evaluation

As part of the application process, the lender will send in a specialist to examine and appraise your car's value. If you want, you can do so beforehand so you can check if there are problems with the car. Problems and defects can lower your car's value, meaning you'll get less money from the loan. A thorough check-up on your car before you apply can ensure you get a fair price and lessen the risk of your car getting rejected during the evaluation period.

Read Up

Most lenders have a website filled with valuable information, guides and tips for potential clients. Although the basic process is the same, lenders vary in terms of methodology, and strictness. You can get a feel for their methods by reading various articles written on their website. There might be rules exclusive to that lender alone. It's better to know what you're getting yourself into and what you should do during the process so you don't have to be told twice.

With these tips, your chances for loan approval are virtually guaranteed. In general, knowing what things can get you rejected will help you steer clear from those pitfalls. The more well-prepared you are, the faster the process becomes and the sooner you will get the funds you need.