With the economy continuously changing, more and more people experience some sort of financial problem. A loan is a clean way of solving an unexpected issue without anyone knowing about it. However, while most can apply, not many people get approved for a bank loan. In case your credit score is not that great, there are other options. Logbook loans are one of them, being available anywhere, from high street to the internet. You can get any sum from £500 to somewhere around the full extent of your vehicle’s worth.
What to look for?
While the process is quite transparent and secure and the market is flooded with lenders, you have to be careful. Most logbook loan firms can have an APR of about 300-450%, which is a little steep and you will end up paying far more than you originally borrowed. That being said, if you do your homework instead of randomly applying for a logbook loan, you will discover there are some firms offering an APR of only 99.9%. With them, you will end of saving a great deal of money. A good example of one such lender is logbookcalculator.com.
Another thing to look for in regard to your loan is the willingness of the lender to have your vehicle independently valued. This will ensure that the entire process is a lot more transparent, benefiting both parties. To eliminate any further potential misunderstandings in regard to the final sum you will be required to return, you can ask for a statement of account document. And, of course, you have to find a great loan firm, such as logbookcalculator.com, that does not charge any extra fees for early repayment. You shouldn’t have to pay more if you are a good client and can afford to repay the entire loan at an earlier time.
About logbook loans in England, Wales and Northern Ireland
The said temporary ownership is only for the period of the loan and all the rights revert back to you as soon as you are able to repay it. Furthermore, you will be able to still use your car or vehicle of choice for the duration of the loan period and are obligated to maintain it in a good condition.
About logbook loans in Scotland
operate under different credit arrangements, so it is best to discuss all aspect of the process with your chosen lender. Ask for a document stating the final sum you will have to return, ask about fees and read everything, including the fine print
If you did your research and decided upon applying for a logbook loan, only borrow the exact amount you need. And remember, you can always discuss any unexpected problems with the lender and come to an amicable solution. This beats all hassle of having bailiffs take your vehicle away.