What You Need to Know About Logbook Loans

Logbook Loan 28

If you have bad credit and you’re hoping to borrow a large sum of money, unsecured loans may not meet your needs anymore. It’s a good thing there are logbook loans. Logbook loans, essentially, are secured loans which means they requires a security or collateral. As you can glean from the loan’s name, logbook loans require you to be a vehicle owner to be eligible for the loan.

Here are things you should know regarding logbook loans if you’re planning to apply for one:

Requirements of a logbook loan

To be able to avail a logbook loan, you must meet the basic requirements, which includes the customer being at least 18 years of age, residing in the UK and owns a vehicle. The vehicle should be free of any financing and it will be used as collateral for the loan. For speedier processing, customers are recommended to prepare a number of documents which include V5 document, Ministry of transport certificate as well as a copy of identity card. In addition to this, your logbook loan lender will require that you provide proof that you receive income monthly, proof of address as well as tax and insurance details.

How much can you borrow with a logbook loan?

Piles Of Money

Piles Of Money

With your car as security, you can borrow more money with a logbook loan as opposed to what unsecured loans can offer. Most lenders offer loans from £500 up to £50,000, which you can use for any purpose you have in mind. With the larger loan offers, it makes logbook loans ideal especially for major financial emergencies like medical expenses and major investments like down payment for a new car or home renovation.

How long are the repayment terms?

With the larger loan offers, it follows that repayment terms are also longer. You can choose to repay the loan bi-weekly or monthly over the course of a year up to 3 years. This makes the loan terms more flexible. If you want your monthly repayment dues to be cheaper, for example, you can borrow a small amount and pay for it for three years. Just keep in mind that interest rates become more expensive over a long period of time.

How much do logbook loans cost?

When it comes to processing, you can’t complain with how fast logbook loans UK applications are processed. But you might say different when it comes to the cost. Because logbook loans are specifically offered for people with bad credit problems, the interest rates are also higher. The representative APR for logbook loans are quite high at 400% or more on average. If you’re going to take out a logbook loan, it is best to plan your borrowing carefully considering the high cost involved and the even higher risk of vehicle repossession.


How to Find the Best Unsecured Loan Deals


There are plenty of unsecured loan deals available in the UK, which means that finding the best deals is not exactly that easy but it’s not impossible either. If you know where to look and what factors to zero in on, you’re sure to find the best deals for your needs. To further help you along with your search for the best unsecured loans, here are a few tips and tricks you can try:

1. Start by planning your loan

No matter your financial needs or emergencies, planning is essential to finding the best loan deal. Start by determining how much exactly you need to solve your financial emergency. If you’re going to borrow money, you don’t want to go beyond what you need and what you can afford. Otherwise, you may end up with a loan you are financially incapable to handle.


2. Shop around for the best loan deals

With your loan plan all set, the next step is to shop around. You can do this by using comparison sites to compare the best and affordable deals available in the market today. Just make sure to only rely on comparison sites with a solid track record. You can also seek recommendations from people you know if you’re having a hard time shopping around.

3. Compare providers

Other than comparing unsecured loan deals, paying attention to your provider’s reputation and track record is also a must. Most lenders may advertise their loan deals as the best or the cheapest but you need to go beyond their advertisements if you really want the best of the lot. Go the extra mile by researching providers and checking how excellent their customer service is.


4. Get help from other customers

You can also get help from other customers by reading reviews. With customer reviews, you’ll have better insight about your provider’s reputation and their loan offers. If most customers were satisfied with their unsecured loan deal, chances are high that you’ll be happy with your loan deal too.



Why Choose Unsecured Loans?


Unsecured loans may not always be the best loan option for everyone but it does come with a number of advantages worth looking at. If you’re struck with a financial emergency and need cash quick, unsecured loans may just save the day. Here are some of the advantages you can enjoy if you apply for an unsecured loan:

Available online

Because the requirements are basic and there’s no security needed, unsecured loans are widely available online. You don’t need to leave the comforts of home to apply for the loan. Just complete an online application, wait for approval and you’ll receive the cash in no time.


Short repayment terms

If you don’t want to get tied up to a lengthy repayment term unsecured loans are advantageous because of the short repayment terms. Take for instance payday loans, which you can pay for within 30 days. Other types of unsecured loans, on one hand, are payable in a few months up to a couple of years.

No credit check

For borrowers with bad credit, the biggest advantage unsecured loans can offer is the no credit check requirement. No matter your credit score, you know you can find a suitable loan deal if you opt for an unsecured loan type. This makes unsecured loans ideal if major banks have been rejecting your personal loan applications. With unsecured loans, you really have nothing to worry about because your application is often always good as approved.

Quick processing

With no credit check needed, it follows that unsecured loans are quick to process. Most providers, in fact, guarantee same day processing. If you are eligible for the loan and you have the requirements ready, you can get approved within hours. The money is then transferred to your account or you can get it in cash depending on your lender’s offer.


Quick Guide to Unsecured Loans for First Timers


If you’re new to borrowing money and you’re looking at unsecured loans, here’s your quick guide to better understand how the financial product works:

What are unsecured loans?

Unsecured loans are personal loans advertised with the promise of quick cash. If you need money to pay for an overdue bill or you want extra cash for your next vacation, unsecured loans are worth looking at. As its name suggests, unsecured loans do not require any security. If you meet the basic requirements and you have proof of income, you can easily apply for an unsecured loan and get approved within the day or even within hours after completing the application.

What are the different types of unsecured loans?

Unsecured loans come in different types. There are signature loans that only require your signature and proof of income. One common example of this type of loan is credit unions. If you’re a credit union member with good credit, you can get approved for a loan fast. Another type is called payday loans, which are ideal for borrowers with bad credit. All you need is to meet the basic requirements and your recent pay slips to avail the loan. Credit cards also fall under the unsecured loan category.

Who are unsecured loans for?

Unsecured loans are for people who only need a small sum of money for immediate financial needs. Be it an overdue bill, a medical emergency or for groceries, unsecured loans offer short term financing at your disposal. Unsecured loans are also for people with bad credit problems. If you can’t get approved for a loan from traditional loans, this is when unsecured loans come handy. Most unsecured loans do not require any credit check. Even if your credit score is poor or bad, you can still apply for the loan but only at a higher interest rate than usual.

How much can you borrow?

Depending on the type of unsecured loan you apply for, you can borrow from as small as £50 up to a couple thousands of sterling pounds. Let’s take for instance payday loans. If you’re eligible to avail the loan, you can borrow from £100 up to £1,000 payable within 30 days or usually on your next payday. If you have good credit, you might be able to borrow more money than if you have a poor credit score.

How much do unsecured loans cost?

Interest rates for unsecured loans vary from deal to deal. Whichever type of unsecured loan you apply for, it is worth noting that your credit score vastly affects the cost of your loan. You can still avail a personal loan even with bad credit but expect that your interest rates will be higher. If you have a good credit score, however, you don’t only get to enjoy larger loan offers but said loans are also less expensive. This is why borrowers are highly encouraged to maintain a good credit score to enjoy advantages such as cheaper loan interest rates.


Where to apply for unsecured loans?

If you’re ready to apply for an unsecured loan, you can do so from banks, high street lenders and from online providers. Availability of loan will depend on which type of personal loan you opt for. If you’re applying for a payday loan, for example, then completing an online application form will work just fine. If you’re looking to avail a credit union loan, you may need to go directly to your credit union’s office. Small personal loans and credit cards, on one hand, are available from banks.


What are the Different Types of Unsecured Loans?


If you’re looking for a personal loan that’s easy to avail and you can use for almost any purpose, look no further than unsecured loans. Unsecured loans are personal loans that do not require any security or collateral thus the fast processing. In fact, most providers can approve loan applications within hours and you can receive the money immediately after the loan is approved.

If you’re planning to borrow money to consolidate debt, pay an overdue bill or to take care of medical emergency, there are suitable unsecured loans perfect for your needs. Here are the different types of unsecured loans to compare:

Signature loans

The most basic type of unsecured loans is called signature loans. To apply for the loan, you don’t need any security; just your signature that will essentially signify your agreement to repay the loan. Examples of signature loans include credit unions and personal loans from banks. Signature loans are ideal for borrowers with a good credit history because then the interest rates are relatively lower. Just go directly to your bank or credit union to avail a signature loan.


Credit cards

Credit cards when used properly are another type of unsecured loans handy for a wide variety of personal needs. Rather than receive a lump sum, you have available money whenever you need it with credit cards. You can charge purchases to your credit cards up to your credit limit then repay it monthly over time. Both customers with bad credit and good credit can avail this type of loan. Just keep in mind that the interest rates are relatively higher than other types of unsecured loans. You can apply for a credit card from banks with more offers available if you have a good credit score.

Peer to peer loans

If you’re not comfortable borrowing money from banks, there are peer-to-peer loans you can check out. Peer to peer loans let you borrow directly from an individual lender rather than from a bank or high street financial institution. This means that there’s no middleman involved hence lower interest rates and faster processing. To avail this type of unsecured loan, all you need to do is go online, post a loan request and wait for a response from a peer or lender. If you have good credit, getting someone to fund your loan through peer to peer lending should be easy and quick.

Payday loans

If you have a bad credit score and you’re having a hard time getting a personal loan, payday loans are worth considering. Payday loans are unsecured loans specifically offered for people with bad credit problems. Just like other types of unsecured loans, you don’t need a security, just your signature and proof of steady income. If you’re working full time with proof of your recent pay slips, you can avail a payday loan deal even if you have a poor credit history. On the downside, the interest rates for payday loans are pretty steep, typically at around 1,000% representative APR.

Doorstep loans

Another type of unsecured loan ideal for people with bad credit is called doorstep loans. As the name suggests, doorstep loans are loans that you can apply for right on your doorstep. You don’t need to go to the lender because the lender brings the loan to you. Just like payday loans, you just need to provide proof of steady income to be able to avail the loan. Regardless of your credit score, you are welcome to borrow a small amount of money for financial emergencies with doorstep loans.