Why Logbook Loans over Other Types of Loans
Logbook loans may have attracted its fair share of controversies over the years but it doesn't make it any less appealing to borrowers either way. In fact, the financial product continues to gain popularity especially today when quick fix solutions for financial problems and expenses are more needed than ever.
But why choose logbook loans over other types such as payday loans, guarantor loans and mortgage loans? Here are possible reasons why:
Logbook loans are widely available
With demand for logbook loans skyrocketing, more lenders, including logbookloanexperts.uk are also stepping up to meet the need. Getting a loan secured against your car has never been easier. The process of applying for one is also made simpler and more convenient.
If you want a logbook loan, all you have to do is find a lender online, fill out the online application form and wait for a response within minutes. And as long as you meet the requirements, you can expect approval and receive cash within the same day.
Logbook loans offer flexible loan amounts and terms
Compared with logbook loans and guarantor loans, logbook loans offer a more flexible loan amount and terms. Depending on the official trade value of your vehicle, you can borrow from £200 to £25,000. Some lenders also offer as much as £50,000.
With respect to the loan term, you have control to how long you want to repay the borrowed money. Some logbook loans span 3 months while others last up to three years. You can tailor the repayment period according to your preference and how much you can afford for weekly or monthly dues.
Logbook loans do not require credit checks
Another major draw to logbook loans is the fact that many lenders do not require credit checks anymore. Unlike banks who refuse to approve your because of bad credit, logbook loan lenders are more sympathetic with individual circumstance.
What's important for lenders is you and your vehicle the requirements. As long as they can keep the V5 or logbook document, loan approval is usually guaranteed.
Logbook loans are relatively cheaper
Compared with unsecured loans such as payday loans, logbook loans are cheaper. With a payday loan, representative APR is about 1,000% or more. With a logbook loan, the average APR is 400% or more. Some lenders offer less making the financial product cheaper and more affordable even though it is still more expensive than conventional loans.
What about Disadvantages?
The main premise that justifies the interest rate is how quick and easy it is to avail a logbook loan. It's an ideal quick fix solution to immediate and pressing financial concerns.
Clearly, logbook loans have a handful of advantages. But like with any other type of loans, it also comes with disadvantages and risks. To know more about the other side of things, click here for more information. By weighing both the pros and cons, you’ll be able to make a more informed decision about whether you should get a logbook loan or not.