How doorstep loans differ from logbook loans

If you have bad credit, you definitely have thought of applying any one of the many bad credit loans. After all, the prospect of no credit checks has indeed made bad credit loans quite popular not only in the UK but also in other parts of the world. Your resolve to go for bad credit loans such as guarantor loans, logbook loans or even doorstep loans is probably informed by the bad experiences you got when applying for loans from high street banks.

The most common bad credit loans in the UK market today are doorstep loans, payday loans, logbook loans as well as guarantor loans. However, for the purposes of this article, we are going to focus on doorstep loans and logbook loans. We are actually going to shed light on how they differ and why a person should go for either of the two. However, before we get into that, it is essential that we understand what each of these two loans are all about.

Doorstep loans

Also known as home credit, this is a short term loan where cash is availed right at your doorstep. A doorstep loan agent comes to your home, asks you a number of questions, get primary information about you and makes an instant decision as to whether you are qualified for this kind of loan or not. He not only delivers the cash at your doorstep but also collects repayments from your home when due.

Logbook loans

Also known as a V5 loan, this is a bad credit loan where a person signs over ownership of their car to the lender in exchange for a loan. In other words, you hand over your car logbook to the lender and they become temporal owners of your car for the duration of the loan. As with doorstep loans, you need not worry about credit checks.

So what are the differences between these two types of loans?


For a doorstep loan, you do not need to have security in order to be considered for credit. In other words, a doorstep loan is an unsecured loan. The same cannot be said of a logbook loan where it is mandatory that you be a legal owner of car that you can set up as security before you are considered for a loan.

Maximum amount of money you can borrow

A doorstep loan is essentially a short term loan where most lenders put the maximum borrowable amount at £1500. What this specifically means is that a doorstep loan is not the perfect loan instrument especially when you want a huge amount of money for investment. It is suitable for small amounts of money or to attend to expenses relating to car repair, roof repairs or even payment of an emergency medical bill. On the other hand, the maximum amount of money you can borrow under a logbook loan is dependent on the current trade value of your car. Simply put, you can get as much as half the value of your car currently under a logbook loan. In other words, most logbook loan lenders are comfortable to advance your up to £50000 provided that your car is twice the value.

Repayment period

The average repayment period for doorstep loans is 13 weeks and there are lenders who even allow up to 51 weeks. As regards logbook loans, a borrower has up to 36 months repayment period.

In view of the above, it is actually easy to determine which type of loan instrument you should go for based on your needs, tastes and preferences!