Securing a Loan for People with Bad Credit! Logbook Loans!
UK Payday Loans to be restricted
Nary a week goes by without a news article appearing online or in some publication about so-called payday loans. These differ from log book loans in that there is no requirement to secure the loan; rather it's only required that the applicant has a job and an income. Late last year, MPs promised that there would be a law change that would limit the amount of interest that can be charged on loans. This follows complaints that the APR of some loans were as high as 4000% (though the loans are actually designed to be only a month long, and on a month ineterest rates are generally at the 125% mark.) Let's wait and see what happens when the law gets passed and how it is structured!
Logbook loans use the logbook of your vehicle as security and you can borrow money without credit checks
To borrow money up to GBP 50,000 for up to 12 months and maybe without a credit check it is possible if you are a car owner. A logbook loan allows you to borrow money and secure this with your vehicle – so you don't have to be a home owner to be able to take out these secured loans. Logbook loans are quick loans but considerably cheaper then payday loans. Logbook loans are similar to payday loans in that they should be paid off as soon as possible.
The amount of money you can borrow in the logbook loan is dependent on the value of your car, and usually up to 50 percent of its value can be taken out. Logbook loan lenders will usually accept cars which are not older than 10 years with a valid road fund license and MOT. Borrowers must be at least 18 years old and it will be require that you to live within the country. The vehicle must be registered in your own name.
Last Updated (Tuesday, 02 October 2012 16:01)
Logbook loans – the ideal solution if you have a bad credit score
If you are unable to take out a loan because there is no asset like your home which you can provide as security, and if you also have a bed credit score, there still is a solution. A logbook loan allows you to take out a loan with your car as security. With the logbook loan you can borrow sums between GBP 500 to GBP 50,000, depending on the value of your car. Very often logbook loan lenders will be able to accept your application without a credit check. As with a payday loan, the money will arrive very quickly. They are a very good secured loans.
Similar to a payday loans are logbook loans is designed to be paid back as soon as possible within around one month. If one does not keep up with one's repayments for a logbook loan, it is possible that one loses one's car. This means less risk for the lender and therefore a logbook loan generally will be a little better-priced the payday loan. Most of the logbook loan lenders will accept you if your car is not older than 10 years, and you will be able to borrow up to 50 percent of its value. Before applying for a logbook loan take enough time to compare different lenders and calculate the interest rates carefully.
Last Updated (Tuesday, 02 October 2012 16:04)
Logbook Loans – What Are The Risks?
A logbook loan is essentially a secured loan where if you need a loan you can secure it against your car as opposed to your home which is usually your greatest and most valued asset and more devastating if it were to be reclaimed. If you are planning on taking out a logbook loans you can usually borrow a significant amount of money, sometimes up to £50,000 which can seriously help you out if you can’t afford to make other repayments and pay your bills. Logbook loans are useful if in the past you have had problems with receiving loans elsewhere due to bad credit history or CCJs as most lenders will not check your credit rating. Most logbook loan companies will accept your application for a loan and funds can be with you quickly and securely.
Getting a logbook loan is fast and easy however there are evidently risks involved with such a loan. If you struggle financially and have difficulties managing your finances especially making loan repayments then you must think carefully about committing to taking out a logbook loan. As mentioned previously logbook loans are secured against your car which is beneficial in some ways but very risky in others. You stand to lose your car if you fail to make your repayments to the lender or loan provider. It is advised that before you agree to a logbook loan you are sure that when it comes to it you will have sufficient funds to repay the loan so that you don’t find yourself facing more financial issues.
For South Africa check here: Loans in South Africa
Last Updated (Tuesday, 02 October 2012 16:08)