Logbook loans are generally taken out by people owning a low value cars and who are looking to secure a fast, same day cash loan against the car. But latest data shows that this is no longer the case. More and more applications are coming through from people trying to secure loans against much higher value cars. This implies that the current economic climate is having a significant effect on people who were falling into a different credit group and would not consider taking out a 'bad credit loan' or a loan against their car before, and that these loans are sourced as an option more and more.
http://www.logbookuk.co.uk/
Most people who may have heard about bad credit loans already are more aware of payday loans than logbook loans. Both are pretty much the first stop, after being turned down from a bank, but not many people have a good understanding of how these loans compare with each other.
Payday Loans are a good short term solution for anyone needing a quick cash advance before their payday. However even that may not offer the best solution in a money crisis. First of all not every person can meet the initial criteria for a payday loan although most payday lenders do not require a credit check.
Applicants must confirm that they are:
- Over 18 years old
- Employed full-time or part-time
- Taking home more than £750 per month
- A UK resident
- And have a valid debit card
Some clients may have had problems repaying a previous payday loan, i.e. did not repay the loan on agreed date, and so he or she will be refused when they apply for a second time.
Logbook UK offers an alternative to payday loans.
A logbook loan is secured against the value of a vehicle using its log book. This could be a car, van, motorbike or caravan or anything which has a logbook or V5C document, although cars are usually the easiest and most common. If a loan applicant owns a car then he/she may prefer a log book loan to payday loan anyway as the APR or interest rates are generally a lot lower and repayment period is much more flexible, meaning that an entire loan amount does not have to be paid in full on their next payday.
A logbook loan is also useful if more than £300 is required and needs to be paid out on the same day in cash. It means there is no need to wait for the cash to clear in a bank account, which with payday loan could take a couple of days.
Both payday loans and logbook loans are fast same day loans for people with money problems or bad credit. Logbook loans generally have standard interest rate of 10% per month in comparison to around 25% per month with payday loans. Repayments on logbook loans are also more flexible; they can be spread over period that suits clients. In contrast the whole payday loan must be repaid on their next payday. Generally the loan amount is much greater with logbook loans too, often up to 75% of the value of a car, which can be even as much as £50,000. Another advantage of logbook loans is the fact that clients still get to use their own car during the loan period.
Payday Loan Summary
- Full loan amount must be repaid on next payday
- Standard interest rate around 25% per month
- Usual APR around 2000%
- Borrow up to £750
- Can take up to 2 days to clear
http://www.paydaypower.co.uk
Logbook Loan Summary
- Flexible repayments
- Standard interest rate around 10% per month
- Usual APR around 200%
- Immediate cash
For more information on logbook loans providers throughout the UK visit:
http://www.LogbookUK.co.uk
