The Benefits of Logbook Loans to People With Bad Credit
If you’ve been looking for a loan recently, chances are that you may have already heard of logbook loans. There are many different types of loans available – from long term low APR ones offered by banks right through to short term flexible lending products like payday loans. Logbook loans provide a way for people with a history of adverse credit to borrow money.
Logbook loans appeal to people who have a poor credit history. There are no background credit checks and virtually anyone who has a car and is able to repay the loan qualifies. If you’re in a situation where you need money quickly and have a bad credit history then a logbook loan could the right solution for you. They allow you to borrow from between £500 and £50,000 and you are usually able to get your money within 24 hours. They are any purpose loan which means it’s entirely up to you what you spend it on.
Logbook loans are also used by people who are seeking an alternative to payday loans. By using your car as security this lowers the risk of them losing money and enables them to offer you a much larger amount of cash at a typically lower rate than payday loans.
The interest rates on logbook loans are much higher than normal bank rates. This is mainly due to the fact that there is no credit check. It would be unfair to compare a company which offers no credit check loans to a banking institution which is likely to look through your credit record and come up with an APR based on your history. The simple fact is that many people who are looking at logbook loans would simply be refused credit by their banks.
In addition to this, it’s important to remember that many people use logbook loans as a short term solution. So, for example if you were to borrow £1,500 for 4 weeks then you would repay just £1,919.18. The vast majority of logbook loan users settle their loans early and get an interest rebate.
The great thing about logbook loans is the money can be used for whatever you like. The idea behind logbook lending is give people easy access to money without hassles. The money could be spend on any number of things from a holiday, wedding, utility bills, debts or even to start a new business.
The fact of the matter is that since the global financial crisis obtaining credit has become harder and harder. With many individuals getting refused loans and credit based on their history we are now seeing a whole new sector of companies offering lending solutions.
Before getting a logbook loan its worth remembering that you should fully own the vehicle. This means, it should be clear of any finance agreements and you should be able to repay the loan fully.