Times are getting harder and harder and budgets are getting tight. If you find yourself in a situation where you need some fast cash to solve an emergency but you are already sure that you cannot get a loan from a bank because of your bad credit rating, there is still some hope. There are such things as logbook loans. Logbook loans are loans you take out using your vehicle as security. These are fast cash loans that fortunately do not check your credit rating so even if you have a bad one, as long as you have a car or motorbike with value, you can get the cash from them fast. Once you take out a loan, you give them your vehicle’s logbook or V5 document. Just be sure to keep your payments on time. Otherwise, they will repossess your vehicle to cover their losses. Logbook loans are designed to aid you in solving money problems fast so you can be saved from more difficulties. They are not put in place to give you more money problems.
Logbook loans can also save you not just by lending you the money you need. This type of loan can also help you rebuild your credit. They don’t check your rating before approving your loan but your payments to them can make an impact to it. If you pay them on time or pay them off ahead of schedule, this will show as a positive impact on your credit report. Make sure that you make a payment arrangement that is easy to manage. Some logbook loan companies are very strict when it comes to making payments on time so whatever the case, be sure that you don’t miss your due date or you risk losing your car. Logbook loans are very helpful because they can help you almost immediately and you still get to drive away with your car. However, one missed payment could mean losing your vehicle and taking a toll on your credit rating at the same time.
Keep Your Credit Rating Good
Financial institutions have different standards when it comes to credit ratings. They have different checklists so even if you have an excellent rating, you may be denied a loan. They consider factors like how many accounts you have, when your last loan application was, your open credit among others. You have to always be updated on your credit rating. Get a copy of your credit report at least once a year so that you know what needs to be updated and what accounts or open credits you have to get rid of. Sometimes, too much credit available hurts your rating so if you are not using that credit card that looks good in your wallet but has a high credit limit, close it. Also be mindful of loan applications. Choose carefully where you want to apply a loan from especially if they are doing a credit check. Too many inquiries on your credit report will put a hit on your rating so if it’s not really necessary, don’t fill out that loan application form.