Eligibility and Requirements

As a loan for bad credit, logbook loans are designed to become accessible for everyone, and thus naturally have fewer requirements than traditional loans. Still, there are basic eligibility criteria that you’ll have to meet in order to obtain this type of loan.


  • You must be of legal age, and in the UK, that is 18 years and above.
  • You must be residing in the UK for at least 3 years and have been living in the same address for at least 6 months.
  • You must be registered as the legal owner of the vehicle you’re securing the loan against.
  • You must be employed full time with the same company for at least 6 months, and must be earning enough income to meet the repayments. If you are self-employed, you must be able to show proof that you have a stable income source.


  • Your proof of identity. You must have a valid identification that includes your name, photo, and signature. Ideally, if you are listed in the electoral roll, that verifies your identity even further.
  • Your proof of address. The lender needs to know where you live, so that they will know where to find you should you fail to meet the repayment terms. While it’s not required that you are a homeowner, the lender would want someone who has lived in the same address for at least six months. Your proof of address can be your most recent utility bills.
  • Your proof of income. For someone with poor credit to qualify for a logbook loan, there’s a certain amount of income to be met, depending on the loan’s value. Most lenders require that you should be earning at least £750 per month. To prove your income, you should present valid certification from your employer, as well as your most recent wage slips. Meanwhile, if you are self-employed, you’ll need to show your bank statement, to prove that you have a means to pay back what you intend to borrow.
  • Your vehicle’s logbook or V5. When you apply for a logbook loan, the lender will take possession of your logbook, while you are allowed to keep driving the vehicle itself. You will have to sign the bill of sale which serves to transfer the ownership temporarily to the lender while the loan is in place, while you remain as the car’s registered keeper.
  • Your vehicle’s MOT. You car should pass safety standards in the UK, which is proven by the annual MOT test.
  • Your vehicle’s insurance details. Whatever happens to the vehicle while under the logbook loan will still be your responsibility as the keeper. If it encounters any accident or requires any repairs/maintenance, the issues will need to be addressed immediately, which is why the lender will not accept any vehicle that is not fully insured.
  • Financing papers. Ideally, your vehicle must be free of financing, but the lender might be able to consider if you’re nearing the end of the financing terms and there’s a substantial equity in the car.