If you have a bad credit rating, it can be near impossible to get a loan. When a bank or other lender does a credit check and finds a low credit score, they reject the applicant. This can be very annoying and frustrating for people who desperately need a loan, especially if the borrower has made mistakes in the past.
Car logbook loans, is a new type of loan product where many lenders offer no credit check loans. They can offer this becuase they lend against the value of your car and the V5 car logbook is handed over to the lender. Anyone in the UK selling a car must have this logbook.
A car logbook loan is a kind of loan secured against your vehicle. The lender keeps the logbook until the loan is paid off. You can keep your car and drive it. In the event of defualt the lender can gain ownership of the car. Most people, of course, repay the loan and keep their car; this is the last resort for a logbook loaner.
However, care should be taken from companies offering to lend money with no credit check because they may not take care to ensure you can repay the loan.
If you get a logbook loan, the lender will take your logbook as they lend you the money. So you only give your logbook once you have the money.