- Posted by: Administrator
- Category: Finance
A logbook loan is one where you use your vehicle as collateral. This means that the lender is not so worried about your credit record as they know that they can sell the vehicle and get their money back that way, should they need to. There are other loans that do not require a credit check as well and they could be better in some circumstances.
If you need your vehicle for work, then risking it being repossessed by using it as collateral is a massive risk. If you miss a repayment it could be taken from you. You will not be able to get to work, have no income and then be worse off than you were before you took out the loan.
Some loans such as those can be arranged very quickly. This can be very useful in some circumstances and better than a logbook loan as it takes time for someone to see the car and approve the loan. It may be more expensive though, so you will need to decide whether time is more important than the cost. It will very much depend on your personal circumstances.
Whenever you decide to borrow money it is so important to make sure that you get the right loan for you. It is worth finding out what all of your options are so that you can decide which will suit your needs the best.
You may decide that you would rather have something that is cheaper or you may want something quicker. You may want a loan with no credit check as you know you have a bad credit record. You also have the option to take a closer look at credit repair which can give you more options for better loans in the future.
Look at these different factors and choose the loan that will work out best for you. Then compare the lenders offering this type of loan and see which of them will be the cheapest. Remember to look at other things as well as cost though. Check out the reputation of the company and also what charges they have for late paying and things like that.
Try not to panic about needing the money and take some time to do research so that you are sure you will be getting the best deal to suit you and your needs. It does not need to take that long to do the research and it could make a massive difference to you.
SOURCE: LOGBOOK LOANS BLOG