Who are Logbook Loans For?

Logbook loans are secured personal loans offered specifically for people with bad credit. If you have a poor credit score because of CCJ or default and you can’t avail a loan from major lenders, logbook loans make handy quick cash alternatives. All you need is a vehicle to secure the loan against and you can borrow anywhere from £500 up to £50,000 with repayment terms starting from 12 months up to 36 months.


While accessible and without the credit check requirement, logbook loans should be taken with caution. In order to balance out the high risks lenders are taking by lending borrowers with bad credit money, interest rates are generally higher and more expensive for logbook loans.

Compared with traditional personal loans, logbook loans come with hefty fees. In fact, the average representative APR for a typical logbook loan is 400%. The APR represents the cost of your loan inclusive of interest rate, admin charges and other related fees on annual basis.

Aside from the high cost, logbook loans are even riskier because of the security involved. Like with any secured personal loan, logbook loans put your asset, your vehicle in this case, at high risks for repossession. With the security involved, lenders are able to lend you money with little to no risks on their end and you shoulder all the risks.

If you can’t repay the loan, you may end up losing your vehicle. As dictated by the loan terms, you agree to vehicle repossession and resale. Once repossessed, the lender can opt to sell your vehicle to recover their losses.

Considering the high risks and high costs involved when borrowing a logbook loan, it would pay for borrowers to consider the loan carefully. In fact, it might be best to reserve the loan as a last resort.