Does everyone qualify for a logbook loan?

Based on the marketing gimmick of various logbook loan providers, the general belief has been that everyone qualifies for a logbook loan. Well, to some extent, this fallacious belief is loosely based on the aspect of credit rating and security required so to speak. Simply put, oneís credit score status is not an impediment so long as they legally own a car that they can set up as security. Rules that govern credit score status have no bearing or effect at all as to whether a person is approved or denied a logbook loan.

While we might want to make everyone happy, it is at times good to be honest to ourselves and educate the masses that indeed there are exceptions when it comes to logbook loan qualifications. Not everyone can just apply at any UK logbook loan provider and expect to qualify or be approved for a loan. In light of this, letís take a look at individuals or circumstances under which a person is not deemed qualified for a logbook loan in the UK.


Not to sound discriminative or anything but the rule of thumb is that only UK residents can be considered for a logbook loan in the UK. In other words, if you are a foreigner and have just come to the UK temporarily, getting approved for a logbook loan will be a tall order as you need to be a bonafide citizen before you qualify for a loan.


A minor refers to any individual who is not of legal age or in other words, any person under the age of 18 years. Any contract entered into with a minor is considered null and void and as such cannot be enforced in any court of law. In light of this, it doesnít matter whether you are just 2 months before you reach the legal age or how desperately you need cash. If you are not 18 years old yet, you can rest assured that your logbook loan application wonít be approved.

Unemployed individuals

In as much as logbook loans are ideal for individuals with a poor credit rating, no UK logbook loan lender is willing to risk their business on a person who is unable to meet their payment monthly. One of the key requirements when applying for a logbook loan is that a person needs to be employed. In fact, the amount a person qualifies for is also informed by the salary he/she gets on a monthly basis. As such, a person who is not employed and does not get regular income will not qualify for a logbook loan.

Uninsured car as collateral

One of the requirements to qualify for a logbook loan is that the car you set up as collateral needs to be comprehensively insured. In addition to that, it needs to be in good condition (the reason why a MOT certificate is required) and also needs to be serviced regularly. As such, if you are in possession of a car that is not fully insured, rest assured that you canít qualify for a logbook loan in the United Kingdom.