How to Find Cheaper Logbook Loans
Is there such as a thing as cheaper logbook loan deals? Yes, there are if you know where to look. While logbook loan APRs is high, averaging about 400%, there are lenders who offer lesser interest rates. All you have to do is find them to enjoy cheaper rates and lower monthly dues.
To help you find cheaper deals on logbook loans, here are three simply things that usually work:
1. Shop Around
Much like with anything, shopping around is one effective way to find good deals. This is exactly the same way with logbook loans. With so many lenders offering same-day approval, choosing the right one can be confusing and taxing. Only by shopping around will you be able to know what kind of deals is available in the market.
To effectively compare lenders and deals against each other, it is recommended to use reputable comparison sites. In fact, you can start doing it now by heading over to Money Co UK where lenders are extensively compared according to Representative APR, loan amounts and loan terms.
2. Check the APR
When it comes to logbook loans, the most important factor to check is the APR. Logically, the lower the APR, the cheaper the loan deal is. It makes perfect sense, therefore, to opt for the lender with the lowest APR. Just keep in mind though that APR advertised by lenders are just representative rates. It may vary from the exact APR which you need to confirm with your lender before signing anything.
To illustrate how APR works, here is one example. Say you want to borrow £800 for overdue bills or medical emergencies. If the Representative APR is 464.4% and the per annual fixed rate is 132% at 18 months, you will be repaying £134.1 per month totaling to about £2,413.98 at the end of term.
3. Read the Fine Print
While the APR is a clear indication of how cheap or affordable the logbook loan can be, never forget about the fine print too. Looking at the APR is wise but what's wiser is to read the fine print. Oftentimes, lenders have charges and fees that are not advertised outright. As the borrower, it is your job to read the fine print and confirm hidden charges if there are any.
If there are things that aren't clear enough, don't hesitate to clarify it with your lender before you seal the deal.