Logbook loans use a person’s car for security against the loan. The beauty of this loan is that a person can continue to use his car, even though it’s a collateral against the money taken from the company. People who own commercial vehicles find this really useful as it allows them to use the car for making a living and repaying the loan. Even, people who otherwise keep their car for personal use, find it convenient to not break their daily usage and dependency on the car.

People with bad credit record find logbook loans extremely useful. The fact of the matter is that most people are in debt not out of choice but out of circumstances. Fortunately, Logbook loan companies give them an option. These companies give loans to people with bad credit history too; all that is required is a vehicle in the name of the person who wants the loan. This is also an opportunity to improve your credit worthiness by returning the loan on time.

Logbook loans, however, have a high interest rate, an ADR of about 400% to 500%. If you are confident that you can repay the loan together with the high interest rate you should go ahead and take the loan.

Today, many companies give logbook loans. All you need to do is go online and search for logbook loan quote. You should contact the companies online. Most companies revert back immediately and you also don’t have to spend time standing in queues to get your queries answered. Logbook loans are best suited for people who have an immediate and temporary need for cash. V5 loans should not be used to payoff other loans especially if there is no steady stream of income as you will be trapped in the vicious circle of loans and your credit record will go totally negative.