logbook loan

Is going for a logbook loan the solution?

When all is said and done, the truth of the matter is that having a poor credit rating can never be okay. I understand that many people say this to feel good about themselves but going by the number of disadvantages associated with having a bad credit rating, there is nothing good about having bad credit. You only get to understand this when you are pressed for cash or a phone contract and no one is willing to accommodate you. You feel as if the world has conspired to lock you into a mechanical mode of reaction impossible to resist.

You’ve approached countless lenders and each time the answer is “we are sorry but we can’t approve your application at the moment”. You are dejected, feel unworthy and feel as if you are being hanged to dry on a matter you had no control over. Then you hear about logbook loans and your curiosity is piqued. You even become more vested when you learn that your credit rating is of no consequence in the approval process. You heave a sigh of relief. You can’t believe how lucky you are. Your heart is beating at an unusual rate and you wonder whether it is the solution to your problems.

Well, to answer your concerns, a logbook loan can be the perfect solution to your problem and also a nightmare of sorts if not handled properly. First of all, let’s take a look at the solution aspect. The beauty of logbook loans is that the eligibility requirements are pretty simple and the state of your credit rating of no consequence. It is a secured type of loan where you basically sign over ownership of your car to the lender in return to the amount of money you need as a loan. So long as you have a car in good condition whose tax and insurance details are in order, you are almost assured of loan approval.

With that comes peace of mind, elation and an end to your financial problem. At last, you’ve found a loan product where you don’t have to grapple with the state of your credit score prior to approval. Your problem is sorted and you have a solution to whatever disturbed your mind on end. Well, all these is possible so long as you meet your end part of the bargain and promptly and diligently pay your loan on a monthly basis.

So what happens when the interest rates are so high and you seemingly can’t keep up with payments? That’s the headache, the beginning of your problems all over again. You see, logbook loans are given out on the premise that you will pay without defaulting. Falling back in payments for a couple of months could see you entering into a debt rut. Most lenders charge high penalty fees on defaults and within no time, you will find yourself deeper in debt. You have to contend with unwanted calls every now and then reminding you to pay up and within no time, you lack peace of mind.

As if that is not enough, you are constantly harbouring the fear of losing your car to the lender. Can you paint that picture in your mind? Well, to answer your question, if managed properly, a logbook loan can be a solution to your current financial problems especially if you have a poor credit rating. In fact, www.justlogbookloan.uk have been found to be quite instrumental in not only offering affordable logbook loans but also in according you professional advice on how to go about making logbook loans work for you. On the other hand, poor financial management could see you losing possession of your car. Make an informed decision! Will you?

 

 


Dispelling myths associated with guarantor loans

No doubt, if you have bad credit, you’ve probably entertained the idea of going for a guarantor loan. With your options dwindling and high street banks unwilling to approve you a loan due to the state of your credit score, the allure of a guarantor loan might be irresistible. Though this form of loan is mostly seen as new, the fact of the matter is that it has been around for a quite a long period of time. Look at it this way. In the past, if you wanted to get a small loan from someone and was known to have a rather unpredictable repayment history, a good word from a reputable individual could tilt the scale in your favour. Guarantor loans follow the same line of thought.

A guarantor loan is in essence a type of loan where an individual with a poor credit rating can be approved for a loan provided that they present a person with a good credit rating as their guarantor. In simple terms, the loan works in such a way that should the borrower default or fail to repay the loan, the guarantor is liable to repay the loan up to the last cent. This type of loan has become quite popular no doubt but the soaring in popular has not been without misconceptions. There exist a lot of myths, false beliefs and misconceptions regarding guarantor loans. Today we are going to dispel some of the common myths associated with guarantor loans.

Myth 1: Interest rates associated with guarantor loans are exorbitant or extremely high

While there might be some semblance of truth in this claim, to take it as gospel truth without taking a look at other alternatives is foolhardy. There are indeed other types of loans that charge way higher interest rates than guarantor loans.

For instance, the average APR for logbook loans is 400%. The average APR for payday loans is 1000% and it’s not uncommon to see lenders that even charge up to 1500%. Compare that with the average APR for guarantor loans that averages 40-50% and you will understand that the assertion that guarantor loans are the most expensive is nothing more than a fallacy.

Myth 2: Guarantor loans reflect on the credit file of the guarantor

This is not true. It is imperative to note that guarantor loans are taken in the name of the borrower and the only time that they can reflect on the guarantors credit file is in the event that both the guarantor and borrower fail to repay the loan. That said, they are indeed a perfect way of repairing the borrower’s credit score if managed well.

Myth 3: Under a guarantor loan, you only have access to a small amount of money

As compared to doorstep loans or even payday loans, this assumption does not hold water. As we speak, a person can apply for up to £10,000 under a guarantor loan. This is by all means not a small amount of money. Increased competition and the need by lenders to achieve a competitive edge has seen competitive interest rates not to mention high amounts of money extend to borrowers.

Myth 4: You can only ask a family member to be your guarantor

This couldn’t be further from the truth. The fact of the matter is that you can present anyone as guarantor provided that they have an excellent credit rating and willing to shoulder the responsibilities of repaying your loan in the unlikely event that you default.

In light of the above, it is always important to have facts before making a decision that could ultimately change your financial fortunes. When it comes to loans, ensure you have all the right information and make an informed decision.



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