The car logbook loan is secured, which means there is no reason for a credit check. If the loan is secured on your car, and the borrower for some reason did not repay, then the logbook loaner can gain possession of your car and sell it, to pay off your loan. So the loan is secured on your car.
The logbook loan companies only do this as a last resort, there are many steps they will take before selling your car, as there is a lot of hassle and it can be an expensive process, if you are struggling to repay, they will try to help first, and make arrangements, rather than pay off the loan with your car.
Why and what is a credit check?
A credit check is for banks to check if you have repaid your previous loans and if they were paid on time.
Car logbook loans don’t need a credit check they are an Instant Cash Loan, the lender takes the risk out by securing it on a car. The bank is taking a risk with their traditional loan, and so is the lender, as he might not get paid. A Logbook loan is a win-win for both lender and borrower. The borrower can definitely get a loan and the lender can definitely get a payment.
Why logbook loans and other no credit check loans are so popular
If you think you have bad credit, for any reason, you will probably be refused again, thus making your credit history EVEN worse. If you give up on banks altogether, this makes you vulnerable to local pawn-brokers and loan sharks, who would make your situation even worse. Logbook loans are a guaranteed loan with a guaranteed payment. You get to keep and drive your car as usual, not like a pawnbroker, where he would keep the secured item.