One of the worst things that can happen to anyone financially is to stumble upon a financial emergency without an emergency fund to save the day. What makes it even worse is if you have a bad credit history. When your credit rating is less than perfect, it will be harder than ever to snatch an affordable personal loan deal. You can rely on unsecured personal loans but then the interest rates are very steep and the loan amounts offered are stingy. It’s a good thing there are secured loans such as logbook loans specific for people with bad credit. To know everything you need to know about logbook loans, read on below.
Guide to Logbook Loans
When it comes to personal loans, logbook loans are among the easiest and most convenient financial products to resort to. Logbook loans are secured loans that require borrowers to provide collateral to get approved. In this case, the collateral is your vehicle. The lender will essentially own the vehicle temporarily once your loan is approved. You still get to keep and use your car but remember that it’s now at risk for repossession.
With logbook loans, the loan offers are much larger than what unsecured personal loans can offer. In most cases, borrowers can borrow a minimum of £500 and a maximum of £50,000. The maximum amount you are allowed to borrow will be dependent on your car’s trade value as well as on your monthly income. With more generous loan offers, logbook loans are ideal for a wide range of personal needs. Whether you’re short in cash or you need £10,000 or more for a major investment, logbook loans offer you one of the quickest solutions to your financial problems. To check out available logbook loan deals today, go to simplelogbookloan.co.uk.
Most logbook loans have repayment terms that start from 12 months up to 36 months. For smaller loan amounts, the repayment terms are also shorter usually just a few weeks. Either way, you have the option pay your logbook loan weekly, bi-monthly or once a month. Repayments can be made through any of your lender’s numerous payment centers. You can also make your payment via an auto debit arrangement with your bank. If convenience is what you’re after, opting for the latter repayment option is highly recommended.
When it comes to cost, logbook loans can be pretty expensive considering that there’s no credit check involved. Borrowers are not required to have a good credit score, which means that providers are taking on higher risks than usual. To offset the high risks, providers offer logbook loans with relatively high representative APRs. The average APR for logbook loans is 400% or sometimes even higher. But then there are also providers offering cheaper deals. Your job is to look for deals with the lowest APR to ensure that your loan is as cheapest as possible.
Aside from the high cost, logbook loans are also considered high risk because there’s always the chance that your lender may repossess your vehicle in case of nonpayment. Repossession is not always the first thing lenders carry out for missed or delayed payments but it’s a resort most lenders do not hesitate from carrying out if they don’t receive any response from borrowers. While you can borrow more money, logbook loans are risks hence careful planning is crucial if you don’t want to lose your car in the end.