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    Logbook Loans and the Risk of Ballooning Debts: A Voice of Reason from FCA

Logbook Loans and the Risk of Ballooning Debts: A Voice of Reason from FCA

Every time conventional banks deny people loans, the first reaction is looking for alternatives. A Logbook loan is one of these options preferred by many because it is easy to apply and cash can be in the account within 24 hours. Despite the fact that logbook loans have very high-interest rates at times reaching 400% APR. In her article on “This is The Money”, Ruth Sunderland carefully captures the problem of debt in the UK and why people need to rethink about the root causes. Ruth Focuses on one man, FCA’S Chairman, Mr Baily, who is an inspiration. In this post, we agree with Ruth and Bailey’s argument that the problem if the high debt cannot be simply tackled by banning logbook loans and other high-interest loans. Rather, the focus should be empowering the citizens. A shift from low interest to high-interest credit has caught people unaware For years, many Britons were used to low-interest loans from financial institutions. They could walk into a bank and access loans at interest rates as low as 5%. Now that banks are more stringent to keep the associated risk low, many people are locked out because of low credit score.
By |July 14th, 2017|Blog|0 Comments

What lenders look for before giving you a logbook loan

When it comes to logbook loans, it always seems like the borrowers are more concerned about the loan than the lenders. However, that is not always the case. Logbook lenders have their own questions and concerns too. Before issuing a loan, lenders have to hope and ensure that they will get their money back in one way or another. That is why they also have to take a couple of things into account. By knowing some of these things, you can be able to gauge yourself and know what to expect before applying for a logbook loan. Have a look at them below. Age One of the first thing a logbook loan lender will always ask you before issuing you a loan is the age of your vehicle. The age of your car helps the lender in determining the value of your automobile and ultimately the amount that you’ll be eligible to. You’d be surprised that some car owners don’t even know how old their vehicle is. However, you can find such details using the VIN (Vehicle Identification Number). If you have never seen your VIN, it is usually located on your dashboard area near the windscreen. You should see it […]
By |July 10th, 2017|Blog|0 Comments
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    Loan advice: Things to note before acquiring a simple logbook loan

Loan advice: Things to note before acquiring a simple logbook loan

A logbook loan can be a really great option when you are searching for money to help you through tough financial times. The quick processing and little requirements make them an excellent alternative for acquiring money. After all, you only need to own a car. However, are they always the right loan for you? Here are a few things about logbook loans everybody needs to know. Are great for emergencies only Logbook loans are a favourable option in case you need money fast. However, you need to be aware that they are not that good for your pocket as they seem to be. Actually, logbook loans have really high APR’s compared to bank loans. Although you might get your cash quickly, these high interest rates are something you need to avoid if you can. Logbook loans should be among your last options when it comes to seeking finances. Therefore, if you think you can get by the next couple of weeks without taking a loan, continue staying strong. You will be much better off in the long run than when you take a logbook loan. You could actually lose your car It’s no joke. You […]
By |June 27th, 2017|Blog|0 Comments

Why logbook loans are the right choice

In life, anybody could face financial drought. Finding money during this period can become a really difficult task, especially if everyone home is depending on you. Not to worry though. There are so many alternatives for getting money in such financial situations. The only problem is finding the right option for you. Thankfully, you can now acquire some cash to help you out using your own car. All you need is your logbook and you are good to go. So, what makes logbook loans such a great option for acquiring money? Keep reading and find out for yourself. Easy to access Unlike all other loan options out there, logbook loans have proved to be some of the easiest loans to access. Furthermore, logbook lenders are not that hard to find. In fact, if you take a good look around, you should find very many of them around. After all, the logbook loan business is really booming nowadays. Moreover, logbook loans involve very minimal paperwork. That means that you do not have to compile a bunch of documents together. Apart from your logbook, all you’ll need to do is probably fill out a few forms and you’ll be informed of your […]
By |June 22nd, 2017|Blog|0 Comments

Five Hidden Dangers of Taking a Logbook Loan

Taking a logbook loan is as simple as proofing a car is yours and source of revenue. In many cases, you can have the cash against the car within hours of application. However, many financial experts have referred to logbook loans as serious landmines that could easily land a borrower into a sea of trouble. Apart from the high APR that could run well over 400%, there are other numerous dangers that a borrower should be cognizant about. Costs of repaying the loan early While most lenders point the ease of applying and releasing cash, the target is making clients fail to interrogate the entire agreement. However, you can only fail to check every detail of the agreement at personal peril. One of the hidden costs that they do not want you to see is the penalty for early repayment. If you have agreed to repay £70 every month but repay £100, a penalty will be levied on the additional £30. If you do not read between the lines and have the clause that limits the repayment only to the agreed amount per month, there is a risk of additional charges running into hundreds of pounds. Negative impact on your credit score The […]
By |June 17th, 2017|Blog|0 Comments
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    Ten Questions You Must Ask a Logbook Loan Lender before Signing the Agreement

Ten Questions You Must Ask a Logbook Loan Lender before Signing the Agreement

For decades, logbook loans have earned a very bad name. From high APR to associated high risks, the list of potential dangers ahead is endless. Indeed, every financial expert will strongly advise you to stay clear of the logbook loan as much as possible. Despite all the risks, many people are left with no option but the logbook loan when banks decline their applications. To keep these risks low, it is important to identify the right lender and ask these ten questions. 1.      What is your level of customer care service satisfaction? A good logbook loan lender should have a high level of customer care customer satisfaction. This demonstrates that a lender is committed to helping clients plug their financial gaps successfully without getting into further trouble. 2.      What are your requirements for logbook loans? This question is very helpful because it helps the applicant know whether he qualifies for a loan or not. This question will assist you to understand whether only those in employment are eligible or even self-employed people can apply. 3.      How flexible is the loan repayment process? While most loans are offered with fixed repayment terms, lenders are flexible in some cases and can help clients address issues when they arise. […]
By |June 6th, 2017|Blog|0 Comments

Three Most Important Things to Do After Defaulting Logbook Loan

When banks decline loan applications because clients have poor credit scores, most borrowers set out looking for alternatives. Logbook loans come in handy because lenders do not factor the credit score. Besides, they are more flexible, and their loans are provided promptly. Despite these advantages, logbook loans come with many disadvantages. Indeed, financial experts discourage people from taking logbook loans because they are very perilous. Unlike the common conventional bank loans, logbook loans come with high-interest rates of up to 400%. Other defaulted loans largely cause the poor credit score that makes banks turn you down. Now, because the borrower is adding another loan, the chances of defaulting are very high. Many people find themselves at crossroads when they can no longer continue repaying the loans. The risks that come with defaulting on logbook loans include; Very high penalties Car getting repossessed Further damage to your credit score A lot of family stress for losing an important asset when the car is reposed After defaulting on the logbook loan, you need to be prepared for the worst. Here is what you can do to avert the situation. In fact, consider taking these measures as soon as possible in order to remain in […]
By |May 31st, 2017|Blog|0 Comments

The Logbook Balancing Act: How to Get through the Repayment Period Smiling

When many people turn to logbook loans, they already know that the interest rates are high and the risk of having cars reposed. However, the options on the table are very few. They have a very poor credit score, and conventional banks have turned them away. Therefore, a logbook loan is considered God sent! Now, having seen numerous people go through the agony of getting their cars towed away and their lifestyles turning into shambles, you need to be extra cautious. In this post, we bring you the balancing act that will help go through the repayment period smiling and emerge more victorious. Pick the best lender in the UK One fact that every logbook loan borrower must contend with is that everything largely depends on the lender. Get a good lender, and everything will be very easy for you. Now, to get a good lender, you need to do the following; Check the lender’s debt collection policy and practices Identify a lender with lower APR Best lenders commit to clients and are willing to renegotiate in case clients have issues Check to establish whether the lender was good with past […]
By |May 24th, 2017|Blog|0 Comments
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    4 Most Dangerous Pitfalls to Avoid When Taking a Logbook Loan in the UK

4 Most Dangerous Pitfalls to Avoid When Taking a Logbook Loan in the UK

When all the financial institutions turn down your application for a loan, one of the alternatives is a logbook loan. The logbook loan companies are willing to lend you as far as you can proof ability to repay and ownership of the car. While they are fast and will not consider the credit score, you are plunged into a pool of numerous risks. In you make a mistake such as defaulting on repayment agreement; the car will be towed away and sold to recover the cash. Here are the most dangerous pitfalls to avoid when taking a logbook loan. Picking any lender in the market In the UK, there are numerous logbook loan companies. However, picking the first one that comes up in the search results will be a grave mistake. You must be careful to avoid lenders with very high-interest rates and rush to repossess your car. The best lender should be willing to work with you throughout the repayment session and handling any issue that may arise. For example, if the borrower’s salary gets late with a week because of unavoidable circumstances, a good lender should understand. Signing the loan without […]
By |May 13th, 2017|Blog|0 Comments

How Your Job Affects Your Car Insurance

A myriad of factors can affect your car insurance and these range from your age and gender to where you live. Such factors that make your insurance providers view you as high risk and therefore raise the premiums for you. Another major thing that can affect your insurance premiums is your job. The location of your job, work hours and even the people you travel with. All these are factors that are taken into account by insurance providers to come up with a premium rate for you. Let us now look at how your job and how factors relating to it affects your insurance premiums. Passengers Like we noted earlier, the type of people that regularly travel with you with play a significant role in determining your premium rates. This is because insurers are required by law to provide compensation to third parties in the event of harm or injury. People such as journalists are assumed to travel with wealthy people and although this sounds a bit prejudicial, there is in fact rationality to this. Photographers are also expected to travel with highly paid individuals in well-paying careers such as models and musicians and therefore carry high insurance rates.