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13.12.2019 by Dimi V
Have you found yourself in a position where you need to borrow money? If so, there are various options that you have at your disposal. Consumer confidence in borrowing money is higher than ever before, and people have lots of viable options available in terms of consumer credit.
Some of us are lucky enough to have friends or family members that can help. However, the rest of us need to resort to different measures. One of the most common options is to take out a payday loan. Nonetheless, if you assess your options further you will see that a logbook loan is a much better option.
A logbook loan is one that is secured against your vehicle. You will be able to borrow up to a percentage of your vehicle’s current worth. Most companies tend to offer approximately 70 per cent of a car’s value. The borrower then has a set period to pay the money back. This is usually anything from several months to a few years. On the other hand, a payday loan is designed to be an extremely short-term solution. This type of loan typically lasts for a few weeks, i.e. to tie over the individual to payday. This is not a secured loan.
So, why is it better to opt for logbook loans instead of payday loans? Well, as just touched upon, a logbook loan gives you a greater period to pay your loan back. This will ease the pressure and you will also find that there are a lot of companies that give you a period of grace, i.e. you will not have to start paying your loan back immediately. In addition to this, it is also possible to borrow a greater sum of money if you opt for a logbook loan. Evidently, the amount you will be entitled to will depend on the value of your vehicle. However, when it comes to payday loan you will usually only be able to borrow several hundred. The APR also tends to be astronomical on payday loans.
When you take the points that we have mentioned above into your consideration, it is not difficult to see why a logbook loan provides a better alternative to a payday loan. Not only is it likely that you will be able to borrow a greater amount of money, but you should find it easier to make the repayments, as there is greater flexibility in the repayment terms.
If you are currently looking for the best lending solution and you browse the Internet, you will be met with a wealth of different options. This can sometimes be overwhelming, especially for someone that has never borrowed money from a company before. Nonetheless, there are so many different reasons why consumer confidence is high when it comes to secured loans, especially loans on cars.
When you take these four benefits into account, it is not difficult to see why a logbook loan is one of the most popular options for lending money. The only thing you need to do is start looking online to find the best lender for you. Look for someone with experience, a good reputation and repayment terms you are happy with.
Sadly, it is not uncommon for individuals to find themselves in a situation where they need to borrow money. This is especially the case when you consider the damning effects of the Brexit uncertainty for some businesses that are reliant on the EU market, as well as the rising living costs in the United Kingdom. Some of us can borrow off close family members or friends. However, not everyone has this luxury. But this does not mean that help is not available.
As mentioned, a logbook loan is a loan that is secured against your vehicle. You will still have full access to your car and will only have to hand it over if you fail to make the repayments you have agreed to in your contract. The company will typically allow you to borrow up to 70 per cent of your car’s current value. They will use the Glass’s Guide to determine this. You will then have anything between a few months to a couple of years to pay your loan back. This is one of the most popular and effective lending options available nowadays.
As is the case when applying for any type of loan, one of the most important things you need to discover is what will be required from you. There are general criteria in place for anyone who wants to take out a logbook loan. Nonetheless, it is important to state that every lender is different and therefore you should not be alarmed if they ask for something in excess of what has been mentioned in this post.
So, what do you need to be deemed eligible for a loan secured on your vehicle? Well, first and foremost you will obviously need to provide some identification to showcase that you are over the age of 18 – the legal driving age in the United Kingdom. Aside from this, you will need to prove that the vehicle in question is yours and that it has been paid for in full. Lenders will also request that the insurance, MOT and such like is entirely up to date.
Aside from this, the most important thing you need to show is that you have the ability to make the monthly repayments. This is imperative. After all, a lender is not going to lend money to you if they do not believe they are going to get it back. They need to know that you are credible. Thus, you will need to provide them with proof of earnings or something similar. Most people tend to offer income slips to showcase their earnings.
Finally, one of the best things about logbook loans is the fact that a wide range of applicants is considered. If you have no credit history or bad credit history, you definitely should not rule out this option. Most lending companies’ main concern is that you can pay back your loan. Therefore, you do not have to worry about the past holding you back.
So, there you have it: everything you need to know about one of the most effective lending options for people today.