Who are logbook loans ideal for?
18th April 2011
Do payday loans fall short of your expectations? Are you worried that bad credit is going to get in the way of your ability to get unsecured loans? If the answer is ‘yes’ to both of these questions, logbook loans will be the ideal solution to your problems, particularly as this form of credit uses the finance that’s readily available in your car to release the money you need.“
Even though payday loans are ideal for those who need money quickly despite their financial turbulence, the restrictions on the amount of money you can borrow make it problematic if you need a large amount of money rather urgently. Bad credit is somewhat irrelevant with logbook loans as the car is used as security, and the consequences of not keeping up with repayments are clear: losing the vehicle you own.
Also, for some of us, payday loans can be difficult to finance, as the repayments that we will need to make once our pay packets come through could be rather substantial. Logbook loans take place over a longer period of time with smaller weekly repayments, and this is ideal if you don’t want your weekly outgoings to be completely stifled by the repayments you have to make. After all, if you don’t have the money to treat yourself every once in a while, what quality of life would you have? The typical duration for a logbook loan is a year and a half, allowing you to have more time to get your finances in order than you would have done with a payday loan.
Logbook loans are ideal for people that need credit urgently for a number of purposes. Because of how the use of this credit is entirely flexible, an entrepreneur might even be able to use it if they have been rejected for the all-important cash boost they required.
This form of secured loan is also ideal for people who might be homeowners, or for those who are unwilling to secure their property against credit. Using your car that is free of finance is far less of a substantial risk for you to take, and so bearing this in mind as you make your decision will ensure that you don’t get buyer’s remorse further down the line.
Remember: logbook loans are only ideal for those who own the car outright, meaning that those who are still contributing instalments to their ownership of the car will not be eligible for a logbook loan. This is because of how a failure to pay would bring confusion over who would be responsible for the outstanding loan amount that the lender is owed.
As we have seen, logbook loans are aimed at a cross-section of people who need a friendly and efficient way of getting the finance they deserve. With credit being tightened and lenders restricting the people who they offer credit to, is there a better alternative available than logbook loans for your credit needs?