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Logbook Loan Guideline for Borrowers

02/09/2016 admin 0

If you have bad credit because you made bad financial decisions in the past, you’ll have no other choice but to pay for the consequences today. One of the major consequences of bad credit is your limited loan options. It won’t be easy obtaining a mortgage loan, for example, if your credit rating is less than perfect. In the end, you’ll be left with high interest rate unsecured loans for options, which won’t necessarily meet your needs.

In case you need a larger amount than what any unsecured loan can offer, this is where logbook loans come into play. Here’s your quick guideline to help you understand the loan product better:

What are logbook loans?

Logbook loans fall into the category of secured loans. This means that you must be a vehicle owner to avail this loan type. Because lenders have guarantees other than your promise to repay, they can lend you higher loan amounts generally from £500 up to £50,000 with repayment terms between 6 months and 24 months. It can be longer depending on the amount of loan and depending on your agreement with your lender.

Who can apply for this type of loan?

Anyone who meets the basic requirements can apply for a logbook loan. If you are at least 18 years old, you live in the UK and your vehicle is free of any financing then you are eligible to apply for a logbook loan. If you have bad credit and you meet the aforementioned requirements then all the more that you are welcome to apply. Logbook loans, in fact, are specific for borrowers with bad credit. Just prove that you have sufficient monthly income and you’re willing to secure your loan against your vehicle then your loan application is good as approved.

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Why apply for a logbook loan?

You should apply for a logbook loan if you are in need of a large amount of money but you can’t otherwise apply for other types of secured loans. If you have bad credit and are left with no choice, logbook loans are an ideal last alternative. Not only can you borrow a larger amount with secured loans but you can also expect to receive the cash within a day. More importantly, you won’t have to worry about credit checks anymore. Lenders only need you to meet the basic requirements so they can approve your loan application fast.

What are the risks to carefully consider?

Though advantageous in several ways, it is worth noting that logbook loans also have risks to carefully consider. Logbook loan lenders may easily approve your application but you ought to remember that this loan option come with the risk of repossession. Since you agreed to put your vehicle at risk, your lender has the right as per the debt agreement to recover your collateral if you can no longer repay your loan.

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High interest rates are another risks to take into account. Because you have bad credit, except to avail logbook loans with high-interest rates typically at 400% representative APR.

Where to find the best logbook loans?

If you’re ready to face the risks involved with borrowing a logbook loan, you can find the best logbook loan deals online. You can visit website right here to compare deals at much cheaper interest rates than the market average. If you’re ready to apply, just complete the online application, provide the necessary details and wait for further instructions. If you’re not ready to apply yet, you can request a quote at no charge and decide later.

 

 

 

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Battle of Personal Loans: Secured v Unsecured Loans

21/08/2016 admin 0

If you find yourself in dire need of cash, borrowing money is one option to consider. For many people who don’t have any emergency fund or any family to lend them some cash, borrowing money may be the only option available. In this case, there are two basic categories of loan types to research, compare and look closely into.

Most personal loans fall into these two major categories, which are secured loans and unsecured loan. If you have no idea which type to go for, this quick guide to the battle of the personal loans should help you make an informed decision.

What are secured loans?

Personal loans that fall into the category of secured loans are the type that requires some kind of security or collateral. Your loan therefore, is protected by your asset, which may come in the form of your home or car and sometimes by other personal property, savings account, stocks or bonds. The most common examples of secured loans include mortgage, home equity line of credit and auto loan etc.

Why choose a secured loan?

Secured loans are an ideal option for people who are looking to avail large amounts of money. With your loan protected by a security, lenders are more willing to lend money even up to £100,000 or more depending on the collateral involved. Even if you aren’t able to pay your monthly dues at some point, lenders have the guarantee of your collateral to fall back on.

With secured loans, the interest rates are also cheaper compared with unsecured loans. Repayment terms are longer, and range between 12 months up to 25 years.

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What are unsecured loans?

Personal loans that do not require any collateral naturally fall into the category of unsecured personal loans. These loans are much easier to avail because there’s no need for security. With just your promise to pay for the guarantee, lenders are taking more risks with unsecured loans. In the case of defaulting, the lender has no property or security to recover. Approval, in most cases, is dependent on your ability to repay based on your financial income. Examples of unsecured loans include payday loans, credit cards and personal lines of credit etc.

Why choose an unsecured loan?

If you only need a small amount of money to tide things over until the next paycheck, unsecured loans may be the perfect choice for your situation. With these types of loans, approval is quick and easy. As long as you can prove that you have sufficient financial resources to repay the loan, you can expect to obtain your cash in a matter of hours.

On the downside, unsecured loans may come with higher interest rates especially if you have a poor credit score. Because lenders are taking higher risks in the first place, they balance things out by charging higher interest rates. The interest is even steeper if you have a history of default or ccj against you. But while more expensive, unsecured loans remain an attractive option for many borrowers who are in need of quick cash.

 

The Bottom Line

When it comes to borrowing money, there is only one rule of thumb you should adhere to. Borrow responsibly and by responsibly, we mean thorough and careful planning. It’s not about which type is best but rather about what your needs are and what is best suited to meet those needs. There will be instances when a secured loan is the best option and there are also cases you’ll be better off with an unsecured loan. Either way, your job as the borrower is to keep the borrowing within the range of what you can afford to repay. And don’t miss any repayments!