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 clients

Think of other credits and put the logbook loan on top of repayment commitment 

The main reason that people go for logbook loans is that conventional banks cannot lend them. They are a huge risk. Now because you already have other loans, the logbook loan you are looking for must be considered in the light of other credits.

Here you must be smart. Though the previous bank loan you defaulted still counts on the factors pulling down the credit score; the logbook loan presents a bigger threat. The best think is balancing to ensure that all loans are repaid carefully. However, should time when you are faced with the dilemma of what to pay first (logbook loan or other less perilous credits) come, the best option is clearing the logbook loan first. This is because defaulting will mean a hefty penalty and risk of getting the car reposed.

Only borrow what you need and commit repaying the loan within the shortest moment

For many people, getting an easy line of credit makes them consider going for the maximum. It will hurt you! The secret of logbook loans is only going for what you need. If you only need £600, why borrow £6000 because the company is willing to offer it?

After borrowing the least amount possible, commit to repay it within the shortest time possible. This will get you out of the loan faster to concentrate on rebuilding the credit score. If you can source for funds from elsewhere, a decision to clear the logbook loan would be very wise.

Negotiate hard to get lower APR

In many cases, people rarely think that a logbook loan can be negotiated. Once you decide to go for a logbook loan, the first thing is comparing various quotes. Then, negotiate as hard as possible to get the lowest rates. Though some may refuse, there are those that will never let a client get away simply because he is asking for an APR lower with 10%.

To get through a logbook loan smiling demands that a borrower looks at the bigger picture from the beginning to the end. Even though you might be under pressure after banks decline loan request, it is very important to review the lenders and only work with the best. Besides, you need to be on top of the process to cite the cheapest lender. Remember not to stop there; go ahead and ensure you remain on top of the process until the entire loan is cleared. You cannot afford to take the eyes away.