There are hundreds of logbook loan companies everywhere, even online. With so many companies to choose from, it’s more often than not hard to decide which one is best to trust. People who resort to logbook loans are usually in a hurry to get cash fast in order to solve some money issues or take care of emergencies. Before proceeding to get a loan, it’s best to know the ins and outs of this kind of loan to avoid any further money problems. Here are some of the most frequently asked questions and things that you need to consider when getting a logbook loan:
What happens if you don’t make your monthly payments?
Some companies are very strict about this. Once you are late on a payment, they automatically seize your car. Others, however, are more flexible. They give you some time to catch up on late payments, usually 2 or 3 months, but after that, they will have to take your car if you still cannot make the payments.
What happens if you repay the loan early?
This is a very important question to ask before taking out a logbook loan. Since logbook loan companies earn from interests you pay, most charge an early payment fee. When they make a payment arrangement with you, they are already counting the profits they will get from the months that you owe them money. Paying them early means less profit for them, hence the early payment fee. There are a lot of logbook loan creditors that do not charge early payment fee so it’s best to clarify that with the company you are talking to so that you avoid any more additional charges in the future.
What is the maximum amount of money you can borrow?
Logbook loan companies offer between 500GBP to 50,000GBP. However, the amount of money you can get all depends on your car’s value. Vehicles that are new definitely get more value than older ones. This is because in case you cannot pay your loan back, the creditor will sell your car through auction in order to get back the money they gave you and if your car is old, even if it’s well taken cared of, it will definitely be sold at a lower price compared to a newer model.
Do you have to go to the logbook loan company’s branch to get the loan?
Most often than not, yes you have to. This shouldn’t be an issue because there are logbook loan companies in almost every corner. However, logbook loan companies online and also some physical branches can manage to complete your loan without you having to go there. They can send a representative to appraise your car and you just have to make an appointment. Some credit companies can also process your loan in a day, some promise in an hour.
Logbook loan companies are scattered everywhere. After checking that everything works for your convenience, there is one thing more you have to make sure of. Check that the creditor is licensed and authorized to issue loans in the UK. Remember that if you understand your loan terms clearly and you do it with a legal credit company, you shouldn’t have any other thing to worry about except to make the payments on time.