Applying for any loan can feel a bit like being put under a microscope. It helps to know exactly what the lender is looking at and why. At Logbook Money we make the same checks on every application, and none of them are there to catch you out.
Below we go through them in the order they usually happen, with a few tips at each stage to keep things moving.
Before you apply: the basics
To borrow with us you need to be over 18 and live in the UK. You also need a vehicle that:
- is registered in your name, or that you can show you own
- has no outstanding finance on it
- is in good mechanical and cosmetic order, with valid tax, MOT and insurance
We lend against cars, vans and motorbikes. Our page on the vehicles we accept has the details, and you can run through am I eligible? in a couple of minutes before you start.
Tip: if you have recently paid off car finance, check the finance company has marked it as settled, or it may still show up when we look.
When you ask for a quote: a soft search
With your consent, we run a soft credit search with TransUnion. It shows us your credit history but leaves no footprint that other lenders can see, so your credit score is not affected. Your credit file is one part of the picture, not the deciding factor. If you want to understand what is on yours, our guide to what affects your credit score is a good place to start.
We also confirm your identity and address, as every regulated lender has to.
Your vehicle: ownership and value
We confirm that the vehicle is yours and check its records, including whether any finance is registered against it. Then we look at its make, model, age, mileage and condition to work out what it is worth. That value helps decide how much we can lend, alongside what you can afford.
Tip: keep your V5C to hand so you can give us the details accurately. We only need the information on it. We never take the document itself.
Your bank statements and the underwriter's call
This is the most important check. You share your last 60 days of bank statements securely through Open Banking, so there is nothing to download or scan. An underwriter reads them to understand your income, your regular bills and any other credit you are paying.
They then give you a call, usually within 2 working hours of your application. It is a conversation, not an interrogation. They will ask what the loan is for, check anything on your statements that is not clear and make sure the repayments leave you enough to live on. If you have just started a new job and your wages are not showing yet, we will usually ask to see your contract of employment.
Tip: be as accurate as you can about what you earn and spend. Guessing low on spending only leads to questions later, and the whole point is a loan you can actually afford.
Signing: making sure it is you and that you understand
If the underwriter is happy to go ahead, we email your credit agreement so you can read it in your own time. There is no pressure, and you can ring the underwriter with any questions. Our service is not advised, so if you are unsure whether borrowing is right for you, a free adviser at MoneyHelper can talk it through.
For most loans, a signing agent then visits, usually within 3 working hours, to witness the Bill of Sale and take a photo of you with the car. That photo confirms the person signing is the owner. In Scotland you sign a Hire Purchase agreement online and send us the photos and documents instead.
How to avoid delays
- Make sure you can log in to your online banking for the Open Banking step.
- Keep your phone close after applying so you do not miss the underwriter's call.
- Look in your junk folder in case our emails end up there.
- Tell us early about anything unusual, such as a recent house move or change of job.
Once everything is done, the money usually reaches you within 24 working hours of applying. A logbook loan is a costly way to borrow, so check the representative example on our calculator before you go ahead.
Your car may be repossessed if you do not keep up repayments on a loan secured against it.
