Pros and Cons of Logbook Loans

OrangeTaking a logbook loan out can be practical and an easy solution for your cash- flow problems. I have just highlighted a few Pro’s and Con’s of logbook loans:

The Pros Of Logbook Loans

>Logbook loans have an inviting feature which is a fast approval system. It is brilliant if you want to skip visits to a traditional lender and will guarantee same day approval, you can have money put into your account between 2 – 24 hours of applying/ being approved.

> It’s also great for those who have bad credit records. It can be hard or even feel impossible to borrow money from any lender if you don’t have a proven track record. Logbook loans provide financial assistance to those who have a poor or non existent credit history which will otherwise be rejected if they sought help else where.

> In order to qualify you only need to be 18 years old, be a resident in the UK, prove that you are a legal owner of the vehicle with a logbook or V5, proof of ID, billing address and proof of income.

> You also get to keep your vehicle with a logbook loan which is another attractive option as you still get to go to work and get paid in order to pay your loan back rather than having to commute.

> If you are currently not working but are on benefits and are confident you can pay the loan back and are willing to share how you can repay this, some lenders may be fine so apply for the loan and see if you are accepted.

>Most lenders will come to the comfort of your home, you will not need to worry about where the lender is based as they will send out an agent to you at your convenience in order to finalise your paperwork.

>You can save money on your logbook loan by paying it back earlier as you will only be charged interest for when the balance is outstanding.

> Logbook loans can be paid from the period of one week to 18 months. Which it makes it easier to make it a flexible period of repayment.

> Even though most logbook loan lenders have a high interest rate they are usually lower than an unsecured loan. This is usually because the rate of default on these type’s of loans are generally lower and most lenders will feel more secure knowing they have security in case of default with payments. The interest rate is considerably lower when compared to an unsecured loan and the terms of the contract are usually less extreme too.

The Cons of a logbook loan are:

> Logbook loans, like most type of debts have their disadvantages. Being that you can risk having your vehicle repossessed if you fail to keep up with the payments.

> Depending on the lenders terms and conditions you can usually borrow between 50 – 70 % of the value of your vehicle worth.

> Where the interest rates are so high, you shouldn’t consider this loan for a long term.

> You will need to have the vehicle fully insured before you can be accepted for a loan. The company will not be held responsible if anything was to happen to the vehicle during the loan period, it is up to the individual to make sure you are fully covered by the insurance.

> Logbook loans may or may not be the best option for you it is worth shopping around for the best deals in order to save money and time.

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