WARNING: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk/en.

Rates from 12.9% APR to 1625.5% APR.

Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%. Representative APR: 79.5% (variable)

Our simple process

Fill in our form

Fill out our 2 minute quote form with  your basic information

Get quick quote

We’ll match you with the cheapest lender from our panel willing to say yes

Cash paid same day*

*Some of our direct lenders pay out on the same day

What are logbook loans alternatives to logbook loans?

Logbook loans are a type of secured loan available in the UK, where borrowers use their vehicle as collateral to secure the loan. The loan is secured against the vehicle’s logbook, which is also known as the V5C registration document. This document is an official form issued by the Driver and Vehicle Licensing Agency (DVLA) that proves vehicle ownership.

When a borrower takes out a logbook loan, they temporarily transfer ownership of their vehicle to the lender until the loan is fully repaid. However, the borrower is still allowed to use the vehicle during the loan term, as long as they adhere to the agreed-upon terms and conditions.

Logbook loans typically have higher interest rates compared to traditional loans, as they are often used by individuals with poor credit history who may have difficulty obtaining credit through other means. Loan amounts are usually determined by the value of the vehicle, with lenders often providing loans up to 50-70% of the car’s current market value.

If you’re considering a logbook loan but are concerned about the risks and high interest rates, there are several alternatives that may better suit your needs. Complete our loan matching form for a free no obligation quote.

Why trust us?

Match with lenders who will say yes

At BadCredit.co.uk, we could help you get loan you need faster and with less effort. We quickly analyse our panel of lenders for you and present you with the best match, making the whole loan process of securing a loan easier and giving you significantly better odds of being approved.

Quick lender decisions

Our group of lenders use cutting-edge technology to process applications quickly, which can lead to super fast approvals and even same-day funding from some lenders. But remember, approval speed and funding times might be different depending on the lender you’re matched with, so we can’t guarantee you’ll be funded on the same day.

Soft search technology

We work with a wide range of lenders and brokers, and we compare them without performing a hard credit check on your file. Our panel carries out a soft search, which only you can see on your credit report. We use the information you provide to pinpoint the lowest cost lender in our network who’s likely to approve your application.

100% secure

When you request a quote from BadCredit.co.uk, we use your information to connect you with a credit provider likely to accommodate your credit needs. Your data is protected using encryption on our SSL-secured website, and we neither store nor share your information with third parties, except for the lender or broker you are matched with.

100% online

Skip the phone calls and paperwork – simply fill out our form with the required details to match you with the ideal provider. Once submitted, you’ll instantly see your personalised loan and credit options tailored to your needs.



100% independent

Unlike some of the larger comparison websites that are owned by product providers, who often push their own products first, BadCredit.co.uk is entirely independent and unbiased. Our dedication to impartiality ensures that we focus solely on providing you with the most suitable options for your unique financial needs, without any hidden agendas.



Types of bad credit loans

There are various loan options available for individuals with a poor credit score who need access funds. These can be classified into two categories: secured and unsecured bad credit loans. Our platform can assist you in identifying and comparing the different types of bad credit loans, including their terms, fees and qualifications.

Guarantor Loans

Guarantor loans are a type of personal loan where a friend or family member (the guarantor) co-signs the loan agreement, promising to repay the debt if the borrower can’t. They’re designed for people with poor or limited credit histories, offering a way to access funds while also helping to build credit. Borrowers benefit from potentially lower interest rates and better borrowing terms than they might get with other types of bad credit loans.

Learn More
Logbook Loans

These are secured loans that use your vehicle’s logbook as collateral. Borrowers can access funds while still using their car, but risk losing it if they fail to repay the loan. Logbook loans are typically for those with poor credit, offering a way to borrow money without relying on credit scores. We can offer a better alternative to these loans that won’t put your vehicle at risk.

Learn More
Payday Loans

These are small, short-term loans intended to cover unexpected expenses until the borrower’s next payday. They often have high interest rates and fees, and can be costly if not paid back promptly. Payday loans can be easy to obtain compared to other types of loans, even for those with poor credit.

Learn More
No Guarantor Loans

These loans don’t require a co-signer, allowing borrowers with poor or limited credit histories to access funds without involving a friend or family member. Interest rates can be higher than with guarantor loans, and borrowing limits may be lower. No guarantor loans place full repayment responsibility on the borrower.

Learn More
Short Term Loans

These are loans with a repayment period of a few weeks to a year, designed for temporary financial needs. Short-term loans can be easier to obtain than traditional loans but often have higher interest rates. They’re available in various forms, including payday loans and some personal loans.

Learn More
Same Day Loans

These loans offer quick access to funds, often within hours or the same day of application. They’re useful for emergencies or urgent financial needs, but may come with higher interest rates and fees. Same day loans can include payday loans, short-term loans, or other types of fast-access credit.

Learn More
Quick Loans

Quick loans are short-term financing options that provide borrowers with fast access to funds, often within hours or the same day. Designed for emergencies or cash flow shortages, these loans have simple application processes and minimal eligibility requirements.

Learn More
Home Improvement Loans

Home improvement loans are a convenient financial solution designed to help homeowners fund a variety of renovation, repair, or enhancement projects. These loans enable borrowers to access the necessary funds to upgrade their living spaces, increase property value, and improve energy efficiency.

Learn More
Unsecured Loans

Unsecured loans are a type of personal loan that does not require borrowers to provide collateral, such as property or valuable assets, to guarantee repayment. Instead, lenders rely on the borrower’s creditworthiness, income, and financial history to determine loan eligibility, interest rates, and repayment terms.

Learn More
Instant Loans

Instant loans are a fast and convenient financial solution for individuals in need of immediate cash for unexpected expenses, emergencies, or short-term cash flow issues. These loans offer quick approval and same-day fund disbursement, providing borrowers with a hassle-free way to address their financial needs.

Learn More

Frequently asked questions (FAQ)

What is a logbook loan?

A logbook loan is a type of loan secured using your car as collateral. They are sometimes called V5 loans, with V5 being the document code for your vehicle logbook.

Logbook loans work by the lender becoming the legal owner of your car until you have settled your logbook loan in full. This means that if you are unable to make repayments within the agreed terms, the lender will be legally able to seize your car and auction it off to settle your debt.

Logbook loans are provided by many lenders across the UK though currently offered in Scotland.

Am I eligible for a logbook loan?

If you are the legal owner of a car then you will likely be eligible for a logbook loan. Eligibility criteria will vary from lender to lender but generally include:

  • You are over 18 years old
  • You are the owner of an active UK bank account
  • Your car is not currently under finance (some lenders may provide a logbook loan if you car has some outstanding finance)
  • Your car is road-legal (taxed, insured and MOT’d)
  • You can provide proof of regular income (for confidence in loan repayments)
  • You are the legal owner of the car to be used as collateral
  • Your car’s V5 logbook is in your name
Can I still use my car whilst it is being used in a logbook loan?

You can continue to use your car as normal whilst you are paying off a logbook loan within the terms set out by your lender.

However, if you are unable to make payments then your lender may exercise their legal right to seize your car. 

You will also need to ensure that your car remains road-legal (taxed, insured and MOT’d) throughout the duration of your logbook loan repayment.

Will I be able to get a logbook loan with bad credit?

Yes, it is likely that you will be able to secure a logbook loan with poor or absent credit history. 

As the loan is taken out against the value of your car, any credit checks are often far more lenient. This makes logbook loans an attractive option for borrowers unable to secure other loan types. 

However, logbook loans may feature incredibly high interest rates and strict terms. If you fall behind on repayments (which are often requested weekly) then you risk your credit score being impacted negatively. Your lender will also be legally permitted to seize your car. 

If in doubt, we recommend speaking to a financial advisor before taking out a logbook loan – especially if you are already in debt or financial hardship.

How much can I borrow with a logbook loan?

The amount you can secure using a logbook loan depends on the value of the car used for collateral, as this is how lenders calculate the amount you can borrow. 

Typically speaking, logbook loans offer amounts between £500 and £50,000, with lenders generally lending up to or slightly more than half the value of your car.

Can I settle my logbook loan early?

Yes – unlike other loan types, there is no early repayment fee when it comes to logbook loans. This makes logbook loans a potential consideration if you are due a sum of money shortly after taking out your logbook loan.

What are the pros and cons of securing a logbook loan?


No early repayment fee: With some logbook loan lenders, you can pay off your loan early without any early repayment fee. 

More funds available: If you have an expensive car then you may be able to borrow a larger sum of money than would be possible if you secured a traditional loan. Logbook loan amounts are based on the value of the car being used as collateral.

Quick access to funds: Logbook loan applications are usually quicker than other loan types. Many lenders may have your funds with you in just an hour or two.

Flexible repayment structure: Whereas other loan types rely on traditional monthly repayment structures, many logbook loan lenders accept weekly repayments. For some borrowers, this provides greater flexibility.



High interest rates: A logbook loan typically features very high APR rates. This is important to keep in mind – logbook loans should not be taken out lightly, especially if you are already in financial hardship.

Lose your car: If you are unable to keep up with payments then you face the potential risk of having your car seized. 

No direct debits: Some logbook loan lenders are unable to accept direct debit setups, which means you must make your logbook loan repayments manually. If you forget to make a repayment then things can quickly spiral out of control.

Lower financial protection: Other loan types typically feature greater financial protection than logbook loans.

What if I cannot make my logbook loan repayments?

Lenders will vary greatly in how much they are willing to help if you are unable to make your logbook loan repayments. 

Generally speaking, you should expect to forfeit the car used as collateral if you are unable to make repayments. 

Some lenders will offer the chance for you to gain back your car by making more repayments, though you will be subject to far higher APR rates. Your credit score will also be negatively affected.

What happens if my logbook loan lender seizes my car?

The process following car seizure will vary depending on the logbook loan lender you engage. 

Typically speaking, lenders might hold your vehicle for around 14 days whilst giving you a chance to settle the loan. If you do so, you may be able to recover the vehicle. 

However, if their specified vehicle holding time expires, they may auction off your vehicle and use the proceeds from the sale to settle your loan. 

If the amount for which your car is sold is greater than your outstanding repayments then the excess may be repaid to you. However, if the vehicle is sold for less than the outstanding repayments, you will owe the difference and continue to accrue interest on this amount until settled.

Bad credit loan guides

where-can-i-get-a-loan-with-bad-credit-and-no-guarantor Where Can I Get A Loan With Bad Credit And No Guarantor?

Quick answer You can get a loan with bad credit and no guarantor from several UK lenders. We compare 30+…

how-do-uk-credit-scores-work How Do UK Credit Scores Work?

Key takeaways: The UK has three main credit reference agencies, each with different scoring systems, meaning there’s no universal credit…

what-is-the-best-credit-score-company-in-the-uk Which Credit Scoring Company is the Best?

Quick answer Although their scoring scales differ, all 3 main credit scoring companies offer the same thing. Lenders generally use…

Other products we compare

Credit Cards
Car Finance

Page last updated: December 08, 2023 | Author: