Is Logbook Loan Right for You?
Whatever type of loan you’re planning to get, you should always consider more than just fitting the requirements, but also if that particular loan is right for you. Below are the signs that a logbook loan is just exactly what you need.
You Have Poor Credit
Logbook loans are made specifically with bad credit borrowers in mind, and if your credit report is tainted with late payments, collections, or even things as worse as IVA’s and bankruptcy, you will be pleased to know that you won’t be turned down based solely on those reasons.
You Need the Money Quickly
Because logbook loans do not require credit checks, the application process is much faster and easier. If you need an emergency cash flow fix, a logbook loan may be an ideal solution.
You Own a Vehicle with Some Value
A logbook loan allows you to release an amount that is up to 50% of your vehicle’s actual value. While you’re not required to put a sports car up for collateral, a logbook loan may be useful if you need a substantial amount of cash and the right vehicle to secure it for.
You are Able to Pay Back in Time
Logbook loan is a secured loan, and with the bill of sale in place, missing your repayments grants your lender the power to repossess your vehicle. By law, they are allowed to do that even without court order, so it is important to always make your payments on time to prevent that from happening.
You are Willing to Pay More as Compared to a Traditional Loan
We’d be lying if we tell you that logbook loans are cheap. It’s important to keep in mind that logbook loans are expensive. In fact, they are too expensive that many financial experts vouch against using them. Aside from the higher APRs, there are associated penalties whenever you miss your due dates, and even if you want to pay the loan back in full. However, it all comes down to what you need the money for, and if you’re willing to look past the fact that getting a bad credit loan comes with a high price.
You Have Learned Your Lessons
If you’re thinking of getting a logbook loan now, this is most likely because you’ve had bad credit in the past. Still, it is never too late. If you’re sure that you’ve learned from past mistakes and are better able to handle your debts nowadays, then go ahead and get a logbook loan to help boost your credit score.