Emergencies can hit in the most unexpected times. If you find yourself in one and you have a poor credit rating, chances are high that you’ll have a hard time getting approved for a personal loan. But there’s still some good news. If you own a vehicle and you are left with no choice, you can apply for a logbook loan. So what is a logbook loan? A logbook loan is a secured personal loan where you use your vehicle for collateral. Put simply, you are basically borrowing money against your vehicle. Most lenders in the UK can lend you between £500 and £50,000.
But there are just a couple of downsides. Logbook loans can be quite expensive. The average APR for the financial product is a staggering 400% or more. Vehicle repossession is also a possibility. If you can’t repay the loan, there’s a high chance that you might lose your car to your lender. In any case, logbook loans remain an accessible alternative for people with bad credit. You just need to make sure you find the best deals with the most affordable rates before you sign any credit agreement. To help you scout the market for the best logbook loan deals, here are some things you can do:
1. Ask for recommendations
Whether it’s your first time taking out a logbook loan or not, one of the best ways to find a good deal is to seek for recommendations. If you know someone who has applied for a logbook loan, ask him or her if they would recommend their lender. If they were happy with their transaction, chances are high that you now have a potential lender at your disposal. While you’re at it, you may also want to read customer reviews. Rather than listen to lenders advertising themselves, you are better off taking it from customers who’ve been there and done that.
A lot of positive customer reviews are a good sign. But make sure you’re also reading authentic customer reviews.
2. Check your lender’s track record
Aside from reading customer reviews, you’d want to go the extra mile by investigating your lenders track record. There are numerous lenders offering logbook loans online. Some of them may advertise the lowest interest rates ever but only to burden you with hidden fees. Some lenders are also very new in the industry. If you were going to borrow money especially with your vehicle as security, you’d want a lender with a solid track record. The longer the lender in the business, the better it is for your peace of mind.
3. Use comparison sites
You may also use reliable comparison sites when comparing lenders and different logbook loan deals. Rather than spend hours online browsing through thousands of loan deals, you can rely on comparison sites to do most of the work for you. These sites have done the research and have already scouted the market for the best lenders offering the best rates. All you have to do is sift through them based on key factors such as APR, loan repayment terms, loan amount and customer reviews among other things.
4. Read the fine print
To avoid paying hefty fees and charges, you’d want to read the fine print before you close any deal. Most lenders will not disclose all the associated charges related to your logbook loan. As borrower, it’s your responsibility to go the extra mile. Read the fine print for more info on hidden fees and vehicle repossession. You’ll usually learn everything you need to know on the fine print.
You still haven’t found the way to check if you can apply for logbook loan? Do that by visiting this site.