Should you go for a logbook loan or not?
In a world where credit scores affect the borrowing decisions we make, financial pundits have always stressed on the need for prudence financial management. However, what we can all agree on is that at times the state of our credit rating is in not always a function of our financial behaviours. At times, regretfully so, circumstances outside our control make us fall into the debt trap and affect our credit history. With their being few bad credit loans and the impressive soaring popularity of logbook loans, many a people wonder if logbook loans are a viable choice.
Considering the fact that those with a good credit history as well as those with a bad credit history pull in different directions when it comes to logbook loans, it is incumbent upon us to approach the subject of logbook loans with a sober mind and clearly explain why a person should or should not go for a logbook loan.
The pros of going for a logbook loan
- No credit checks
If there is something that has made logbook loans quite popular, it has to be the fact that a person’s credit rating has no bearing on the decision to approve or reject ones application. In fact, even individuals with a history of CCJs or arrears can comfortably apply and get approved for a logbook loan provided that they have collateral and demonstrate the ability to repay the loan.
- Simple application process
If you have ever applied for a loan from a high street bank, you will agree with us that the process is not only involving and complex but also tends to drag on for a couple of weeks and in some situations some months. There is the issue of collateral evaluation, credit checks, guarantors, a lot of paper work just to mention but a few. However, with a logbook loan, the application process is not only simple but one can also apply and get approved within the same day.
- You can raise a substantial amount of money depending on your cars value
Unlike other bad credit loans that incredibly limit the amount of money you can be advanced, the amount of credit you can get under a logbook loan is dependent on a number of factors chief of which is the value of your car. The higher the value of your car, the higher the amount of money you are entitled to when applying for a logbook loan. In simple terms, depending on the value of your car, you can have access of up to £50,000 under a logbook loan.
- Easy repayment model
With a repayment period of up to 36 months not to mention the ability to choose the frequency of repayment, logbook loans are indeed a darling of many people. One can choose to make weekly repayments, bi-weekly repayments or even monthly repayments depending on what they are comfortable with.
The cons of going for a logbook loan
In as much as logbook loans have been widely accepted not only in the UK but also in other parts of the world due to their immense benefits, it is imperative to note that they also have a dark side. Some of the risks of going for a logbook loan include:
- High interest rates (average APR is approximately 400%)
- Risk of car repossession in case of default in payment
- Harassment calls reminding you to repay your loan if you default.
That said, the pros far outweigh the cons and anybody interested in applying for this kind of loan should visit simple logbook loan site and familiarise themselves with not only how this product works but also the process of applying, the requirements, the risks as well as the benefits!