The loan industry is under the spotlight as a result of high interest rates, and some companies’ unrealistic repayment schedules. But not all loans are the same and you may be interested to see the advantages of a logbook loan.
1. Access to instant credit
If you need to pay a large debt, you probably don’t have time to wait until your bank decides whether to give you an overdraft or not. This is where companies, including CarCashPoint can help. If you need funds in a hurry you could have the cash in your account within the hour.
2. A bad credit history can stop you getting a loan
If you have a poor credit history, it’s almost impossible to raise funds in an emergency. The financial website Moneywise.co.uk recognises that those who don’t have access to credit cards or bank overdrafts have little choice for extra cash, and this is where logbook loans come into their own.
If your washing machine breaks down and you desperately need a replacement, a logbook loan may be your only way of securing funds for a new model. You should always be realistic about your weekly repayments, as you could lose your car if you don’t keep up the repayments.
3. You can raise up to £50,000 depending on the value of your car
Yet many new businesses need injections of capital in order to continue trading.
A logbook loan that’s repayable over 36 months will allow you to access 75% of the value of your car; therefore, if you own a smart all singing and dancing sports car, you could be able to borrow up to £50,000.
4. The terms and conditions are easy to understand
Once you’ve decided to take out a logbook loan against your car, you should always choose a company that makes the repayments costs and interest rates very clear. A reputable company will post these details on its website, so that you are aware of the type of credit agreement that you are entering.
You should also be able to find out if you’re liable for any additional charges should you fail to make the repayments.
According to the BBC website payday loan companies are facing a cap on their exorbitant and often hidden fees. Logbook loans are completely separate from payday loans.
5. Easy to repay in small weekly amounts than one large payday repayment
Once you’ve decided to take out a logbook loan, you’ll soon be able to set up a weekly repayment schedule. Most payday loan companies will ask you to repay the whole amount you’ve borrowed in one lump sum and this will include interest rates and fees.
Consequently, you may find yourself out of pocket very quickly. Small weekly repayments from a logbook loan company are far easier for the borrower to manage.