The Internet is full of offers to take a loan against a car. Multiple companies promise fast money almost to everybody with keys in their pocket. What is the truth about logbook loans? Are they a good way to get money?
Let’s discusses their pros and cons and sort things out.
A logbook loan is a kind of loan when your car serves as security. In theory, the lender owns the car until you pay all the money back, but they don’t take it away from you, and you can drive it as usual. Although interest rate on logbook loans is usually high, comparing with other types of secured loans, it still might be a good solution in some situations.
- With a logbook loan, you get money fast. Sometimes people face tasks when they need money and cannot wait. You can want to treat your loved ones as they deserve, or your costs have temporarily increased due to a relative’s illness, or you have lost your job and need additional finances to keep you running until you find a new one. In all these situations a logbook loan might become a go-to solution. Even if the lender chooses a cheque as a way to pay you money, it doesn’t take more than several days. Many companies offer a quick cash service, which allows you to get the loan on the same day.
- Logbook loans companies work with clients who has bad credit history. If you had problems with payments earlier, and your credit rating does not allow you to get a loan from a bank, you still can apply for a logbook loan. With such loans, you can get from £500 to £50,000, depending on your car’s cost and state, and this is much better than nothing.
- You do not need a thick bunch of papers to apply for a logbook loan. All you will be asked to do is to hand over your vehicle’s logbook (this is where the loan’s name comes from). Some companies send their representative to you, which allows to get a loan with minimal efforts and at no time.
These advantages might seem quite tempting, but there’s no such thing as a free lunch.
- Logbook loans are expensive. Interest rate might raise from 150% to 400%, which is higher than most of the secured loans. You should calculate your finance balance accurately to be sure a logbook loan will solve your problem, and will not drag you into a financial sinkhole even deeper.
- The lender temporarily owns your car. It means that if you are unable to make payments, you might lose your car. This is one of the risks which can be mitigated with accurate preparatory calculations. A good logbook loan company will assist you in preparations and will guide you through the all process. They want to receive your payments with all the interest rate, so they are your allies, not adversaries.
- Some companies have hidden fees and payments which are not included in their offer. Their official interest rate can be lower than average, but there will be more money charged than they have been announced. To avoid this risk, you can do the following:
- Read your loan agreement carefully twice. It is better to show it to someone else.
- Study the website of the company: collect testimonials, use the loan calculators, etc.
- Find reviews of the company on the Internet.
Choosing a right lender is a key to get a logbook loan and to pay it in time. logbookcalculator.com is an excellent choice if you look for both speed and stability in borrowing money.
They allow you to choose the most convenient frequency of payments, can be found in a lot of locations throughout England and Wales, and use mobile representatives who can travel to you.
Also, they do not hide any payments and offer a quick cash service. It is an affordable and convenient way to get money and pay back as soon as possible.