Looking for fast and easy access to a small cash loan? A logbook loan is just one legitimate way of borrowing small amounts, and the process of getting one is easy. All you need is a vehicle (the lender will specify what types of vehicles are accepted) and your vehicle logbook. The lender will give you the loan in exchange for holding your logbook, and once the loan has been paid back you will receive your logbook back from the lender! It is as simple as that – and the amount you can borrow may depend on the value of your vehicle. Logbook loans are secured loans, meaning that if you are unable to repay your loan you could risk having your car or other vehicle seized as collateral. Therefore it is wise to consider whether you will be able to manage the loan. What are the terms and rates? Will you be able to afford them? If in doubt, take a look at the other types of loans compared on Which Way To Pay.
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Logbook loans can provide an option when searching for loans for people with bad credit.
Logbook loans are available to people with bad credit
A logbook loan is a secured loan which means that the security of the loan is ensured by an asset which in this case would be your car. The advantage of logbook loans for many people is that these loans are available to people whose credit history is poor. The prospective borrower may still have to undertake a basic credit check but the most important issue will be the value of the car. The amount of money which you will be able to borrow with a logbook loan will depend upon the value of the car which you must own. You will usually be able to borrow up to 70% of the value of the car.
Things to consider before applying for logbook loans
Before you apply for a logbook loan you need to remember that there is a risk involved with these loans. If you cannot make loan repayments on time then you risk losing your car. One way to make sure that you do not end up losing your car is by keeping the amount which you borrow to a minimum. Work out exactly how much you need to borrow, not what you can borrow and this should keep costs down. It can also be better to borrow for shorter periods of time as it can often be the case that the longer you borrow for the more expensive the loan will be in the long term.
Logbook loans are not always the best option
Before you decide to apply for a logbook loan make sure that you consider alternatives. The interest on logbook loans is often high and if you can use an alternative form of borrowing it could well be worth it. If you have thought carefully and you know that a logbook loan is right for you then take the time to shop around in order to find the best deal. Calculate exactly how much interest you will pay on the amount of money which you will borrow. If you have any questions or queries speak to the company directly. If they are awkward about answering your questions then move onto the next company.
Always read the terms and conditions of logbook loans
It is extremely important that you read all of the terms and conditions of the logbook loan for which you want to apply in order to ensure that you fully understand your financial obligations. Logbook loans like any financial product should be taken seriously and you must understand how they work before you apply. The terms and conditions will include all of the necessary details.
If you are sure that a logbook loan is the bad credit loan option you are looking for then make sure that you compare different loan companies. They all offer different rates of interests and their terms and conditions vary. The representative APR will give you a good idea of how expensive the logbook loan is. However, calculate exactly how much you want to borrow and what you will have to pay back and when. If you cannot afford the loan don’t get it as you will lose your car if you default or suffer hefty penalty fees making the loan more expensive.