How Taking A Logbook Loan Can Boost Your Credit Score

How Taking A Logbook Loan Can Boost Your Credit Score

Applying for a loan is as much about having a great credit score, as it is, finding a good lender with favourable rates and provisions. A lot of people apply for loans every year in the United Kingdom, with as many as nine million such applications getting rejected on an annual basis. The major reason behind these loan applications getting rejected stems from bad or poor credit ratings on the part of the applicants. According to a report posted on the telegraph.co.uk, a significant number of people fail to complete processing for loans due to a fear of failing a credit check and getting a bad mark on their credit score. It is certain that a bad credit score serves as a serious delimiting factor for loan applicants all over the UK.

Did you know that taking a logbook loan can actually aid in boosting your credit score?

Boosting a credit score

Having a bad credit score can affect the ability of a borrower to access future loans in a lot of different ways. But it should not serve as the end of the world for a determined borrower. It is possible in various ways to boost your credit score.  Before examining how taking a logbook loan can boost your credit score, we will examine other ways an individual can boost their credit score.

Examine your Statement of Account and make corrections

Every borrower has a statement of account that is made available to interested lenders (during a credit check) when you make a loan application. However, in many scenarios , it has been found that statements of account often have errors which may end up reducing the credit score of the borrower. You can boost your credit score by requesting your credit report or statement of account and making corrections where errors are found. For example, paid accounts which appear as unpaid, incorrect dates, accounts that don’t belong to you appearing under your name etc. are errors which may limit your credit score. Reporting and appealing these errors will help you boost your score by some important points.

Once you clear up those errors on your credit report, you are set to start building your credit score.

Logbook loans are offered for people with bad credit

Having poor credit is one of the factors that limit people from accessing most loans, but not logbook loans. Poor credit is almost a requirement for applying for a logbook loan. Many of the people who apply for (and receive) logbook loans have already been rejected by numerous banks and loaning facilities for personal loans and other types of credit check based loans. Taking a logbook loan is often the only option left, and this is great because, logbook lenders do not check your credit score and the loans can help boost your credit score. So, for a borrower looking to improve their credit score so they can access personal loans, credit card loans or other loans that are based on credit checks.

Boosting your credit score with a logbook loan

One of the reasons why people have bad credit is, with so loans taken and so many repayments to make, it is only a matter of time before they start missing repayments. What a logbook loan can do at this point is to serve as a consolidation loan.

What is a consolidation loan?

A consolidation loan is a loan that buys up all your debt into one loan so you can manage what you repay more efficiently. With a logbook loan, all you need to do is apply, get your vehicle valued by the credit company and you can get enough cash to pay off all your outstanding debt. With only one loan left to pay, you can manage your debt more efficiently and avoid the worry.

By ensuring you keep up to repayments on time, you will build up your credit score again to the point where you are once again eligible for the more limited loan types. So, what are you waiting for, apply for  a logbook loan and boost your credit score today.