Advertised with the promise of quick cash, logbook loans are continue to effectively lure customers to resort to the financial product. Borrowers with bad credit, in particular, find logbook loans handy for a wide range of financial needs. From overdue bills to rent, medical expenses and home renovation, a good logbook loan often saves the day.
While easy to avail and quick to process, logbook loans are also bombarded with controversies for their steep interest rates and hefty hidden fees. In fact, some experts discourage borrowers from resorting to the loan at all. Despite the warnings, however, the financial product continues to grow in popular thanks to its many advantages that often outweigh the risks. Below are some of said advantages.
One of the best things about logbook loans is the fact that lenders do not run credit checks on their applicants. Whether you have a history of ccjs or defaults, you are still welcome to apply for a logbook loan. The loan is especially designed for borrowers who can’t get approved for a loan from major banks and lenders.
Unlike with other loans for people with bad credit such as payday loans, logbook loans offer flexible loan amounts. In general, you can borrow anywhere from £500 to £50,000 or up to 70% of your vehicle’s official trade value. The maximum amount you can borrow will usually depend on the type of car you own and your monthly income. To compare the best logbook loan deals in the UK today, Money Co UK has compiled the best list for you at http://paydayloans.money.co.uk/logbook-loans.htm.
Repayment terms are just as flexible. You can repay the loan in 12 months or up 36 months. Sometimes you can set it longer as long as you speak with your lender and make the necessary arrangement.
Another attractive advantage customers can’t refuse is the fast processing time. Most lenders are now promising same day approval for logbook loan applications. As long as you meet the requirements and you have the documents ready, you can turn your car into cash in 24 hours or less.
Compared with unsecured personal loans, logbook loans are more costly considering that there is security involved. In the event of delayed or missed payments, your lender can use the debt agreement and bill of sale document to repossess your vehicle. If you are still unable to repay the loan after repossession, the lender will eventually sell your car to cover for your outstanding balance.
You also get to keep and still use your car even if it’s used as security for the logbook loan. You only need to hand over your logbook document which in essence is like handing over temporary ownership of your vehicle to your lender. Once the loan is paid off, that’s when you can get your logbook document back.