Why Choose Logbook Loans


Logbook loans may have been bombarded with a lot of controversies in the past years but it continues to gain popularity anyway. The financial product is especially a helpful option for borrowers with bad credit. If you’re thinking of taking out a logbook loan but is still unsure because of what some experts say, below are key advantages of the loan product:

No credit check

For borrowers who have ever been refused a loan because of bad credit, logbook loans are a great alternative. Logbook loan lenders do no run credit checks so your history of ccjs, defaults or even bankruptcy does not really matter. As long as you meet the requirements, you can almost always expect quick approval for your application.

Flexible loan amounts

Since logbook loans are secured loans, the loan amounts are also larger. You can borrow anywhere from £500 to £50,000 or up to 70% of your vehicle’s official trade value. With logbook loans, you can meet practically many of your personal financial needs. From overdue bills to medical expenses, home renovation, vacation or a major investment, logbook loans got you covered.

Flexible loan terms

Simple logbook loan companies are also more flexible with repayment terms. You can repay your loan from 12 to 36 months or longer depending on your set-up with your lender. Repayments are done monthly via direct debit deduction hence more convenient for borrowers. Just make sure your account has sufficient balance to cover for your monthly dues to avoid any complications. In the event that you think you can’t repay the loan, speak with your lender immediately. Some lenders are open to making new arrangements just so it will be easier for borrowers to repay the loan.

Fast processing

Of course, logbook loans are popular than ever because of its fast processing. In fact, more and more lenders are now offering same day approval. If you need quick cash within the day, logbook loans seem like the best option to resort to. Provided that you have the needed documents ready, you can expect to get approved within the same day you applied. Once approved, you can receive the money via wire transfer to your account in minutes.

Cheapest Personal Loans in the UK


With competition among lenders getting stiffer, borrowers now have cheaper options to choose from. The ongoing price war has continued to push the market interest rates lower than ever. Good news for all borrowers but just like before, it pays to be extra careful. Remember that even the best deals have more tricks than you may not know of unless you roll your sleeves and research.

To help you find the cheapest loans in the UK, below is a list of providers you can check out.

For loans below £5,000 using a credit card, the best providers include Tesco, Hitachi and The AA. The AA has 11.9 Rep APR for loans from £3,000 to £4,999 while Hitachi is even cheaper with 7.8% Rep APR for the same amount range. While relatively more expensive, Tesco is recommended anyway as it’s still cheaper than other providers at Rep APR of 14.9 % for loans from £1,000 up to £2,999.

If you’re looking to borrow more than £5,000, the best providers to check are Zopa and Mark & Spencer for amounts from £5,000 to £7,999 at Rep APR of 4.5%. Tesco, Hitatchi and Zopa offer loans from £7,500 to £14,999 at Rep APR of 3.8%. For loan amount beyond £15,000, First Direct is your cheapest bet at 3.6% Rep APR. Finally for over £25,000 loans, Sainsbury’s has a Rep APR of 6.9%.

As you can see from the Rep APRs, it might be smarter to borrow more if you want the loan cheaper and more affordable. This is especially true if you’re borrowing near the threshold offers. You might as well round it up and borrow from the next threshold instead to lower the interest rate significantly. If you do borrow more, remember to keep it within what you can afford to repay per month to avoid any financial consequences.

What I Think About Bad Credit Secured Loans



When you have bad credit and you need cash, finding a personal loan at an affordable rate is never easy. If you borrow from banks, chances of rejections are pretty high. You are tagged as a high risk borrower and we all know major financial institutions don’t want that. You can always check out alternatives too. Borrowing from family makes sense especially if you only need a small sum you can repay back as soon as possible. Taking a cash advance is another option you can try.

But what happens if you’ve exhausted the alternatives? Should you just forego your plan to take out a loan? Of course not. You still have bad credit loan options as your last resort. There’s just one major downside to consider. Loans designed specifically for people with bad credit come with steep interest rates. If you really need the cash, you’d better prepare to pay for the high cost that comes with the promise of easy cash.

In the UK, two of the most popular bad credit loan options are payday loans and logbook loans. Payday loans are unsecured hence the lower loan amount offer, typically somewhere from £100 up to £1000, which you need to repay in 28 days or on the next payday. Logbook loans, on one hand, are secured hence the higher loan amount offers typically from £500 up to £50,000 depending on your vehicle’s trade value.

Both types of loans do no require credit checks. Even if you have a history of defaults, ccjs or even bankruptcy, you can still avail the loan. It’s quick and easy with many lenders now offering same day approval. You can’t really blame borrowers for resorting to such loans especially when the financial situation calls for a quick fix solution.

While I haven’t taken a logbook or payday loan, I have read and heard the controversies surrounding the financial products. Payday loans, in particular, are vehemently criticized by financial experts for its high interest rate. More than that, the product often gets you in a debt trap. And this right here is why I wouldn’t want to take or recommend payday loans as well.

With logbook loans, it’s a different story altogether. Yes, the interest rate is still significantly higher than traditional personal loans. There’s also the risk of vehicle repossession since the loan is secured against your vehicle. But when used right, logbook loans actually come handy to meet a wide range of personal needs.

Between logbook loans and payday loans, the former always wins in my opinion. It’s harder to avail since you need to own a vehicle but the loan is certainly more flexible and more affordable as opposed to payday loans. As borrower, you just need to make sure that you know exactly what you’re getting into meaning you need to know the risks and whether you can handle it or not.

Contrary to what other experts say, I believe logbook loans have a place in the lending industry. It is especially helpful for people with bad credit who’ve been refused a loan elsewhere. But again, it’s important to remember that logbook loans should be a last resort not your go to loan when you’re in a financial bind.

Are Secured Loans Better Than Unsecured Loans?



Most personal loans fall into two main categories – secured or unsecured. And if you’re in the market for a loan, it’s vital to know the difference between the two before going through with any application.

What are secured loans?

Secured loans, as the name suggests, are personal loans that require a security or collateral. If you’re buying a home or car, for example, the property can be used as security. A lien is placed on said property, which means the lender holds the deed, or title and they can foreclose or repossess the house or car if the loan is unpaid.

Other types of secured loans also include home equity loans where you borrow against the current value of your home minus the amount you still owe. You may also use savings accounts, bonds and CDs to secure a personal loan.

Since there’s a security involved, risks are lower for lenders allowing them to offer larger loan amounts at lower interest rates. Secured loans, in short, are ideal for major purchases, investments and large expenses. They’re are cheaper too but they also take a long time to repay typically between 15 to 30 years.

What are unsecured loans?

Unsecured loans, on one hand, are exactly the opposite of secured loans. There’s no collateral needed so faster to process and easier to avail. Most people even those with bad credit can usually avail this type of loan. You also don’t need to be a homeowner to apply.

Unsecured loans include credit card charges, student loans and personal lines of credit among others. Without a security to back up your loan, lenders are taking higher risks hence the higher interest rates. Loan amounts are also lesser with unsecured loans.

With unsecured loans, it is usually wiser to take out the largest amount offered and repay it within the shortest period possible to lower the interest rate. If you want to keep the repayments low, however, you can always opt to repay the loan in 3 to 5 years. Just know that the interest rate in the end will be higher when the repayment period is longer.

Which is better?

For larger amounts, secured loans are often if not always the best option. It’s also cheaper and riskier. It’s cheap because of the low interest rate and riskier because of the possibility of property repossession. Unsecured loans, on one hand, are easier to avail but it offers significantly lower loan amounts. It’s best for people who is not a homeowner and need a quick fix solution for their financial needs. The bottom line, one is only better than the other if the type of loan suits your personal financial needs to a tee.

How to Choose the Right Loan



Loans come in different varieties. There are secured loans for those looking to take out a large sum of money and unsecured loans for fast and easy short term financing. In any case, it’s important to take your time researching your options to find the best deal for your needs and budget.

Don’t know where to start? Below are some questions to ask yourself that will help you find the best loan deals in the UK market today.

How much do I need?

The best place to start when looking to take out a personal loan is with your needs. How much do you really need and what will you use the money for?

While some lenders do no require borrowers to disclose the reason behind the loan, you have to ask the basic questions anyway. This is so you can assess your situation properly. This is also one way to determine whether what will meet your need is a secured or unsecured loan.

How much can I afford for the monthly repayment?

Don’t stop with just your needs. The next step to finding the right loan for you is to assess your budget. Oftentimes, you need more than you can afford. Other times, you borrow more than what you need. It’s important to have your budget in sync with your needs. Check your budget and figure out how much you can afford to allot for loan payments each month. Stay within that budget as much as possible to avoid any complications later on.

What is my credit score?

Before you go ahead and start comparing loan options, you’d also want to know your credit score. A good score means you’ll have access to more loan options at lower interest rates. Little or poor credit score, on one hand, may mean limited options and higher interest rates. If you have bad credit, chances for rejections are also pretty high. In some cases, you’d be left with bad credit loan options, which come with hefty interest rates. And if you do go this route, make sure you know the risks and more the cost associated with the loan.

Are there alternatives to personal loans?

While personal loans most of the time provide you the financing you need, it’s not always the best option for everyone. In the case of people with bad credit, for example, loan options available for them are very expensive. You’d be better off checking out alternative ways to raise funds first before resorting to high interest loans. You can borrow from family for one. Or you may check out credit unions, peer to peer lending and other such alternatives for better deals.m/P>

How much is the interest rate?

Regardless if you’re opting for a secured or an unsecured loan, one of the most important factors to thoroughly research on is the interest rate. Secured loans generally have lower interest rates because of the lower risks lenders are taking. You’ll need a collateral typically your home or vehicle to avail a secured loan. Unsecured loans, on one hand, are more costly in terms of interest since there are no collateral involved.

Investigating the loan’s interest rate and comparing it with other deals is one way to find the right loan option for you. You may use comparison sites or seek professional help to get this part done right.

Can I handle the risks?

To cap off, you have to evaluate the degree of risks you can take. Remember that borrowing money is a major financial move. You can lose a property or hurt your credit score if you are unable to repay the loan.

Beginner’s Guide to Secured Loans



If you’re in a financial bind or planning to make a major investment and you need financing, you can take out a personal loan. When it comes to personal loans, options are quite aplenty. Most unsecured loans, for instance, are quick and easy to avail. But if you’re looking to borrow a large sum, secured loans are the more appropriate option. And if this your first time taking out a secured loan, here is a quick beginner’s guide to help you along:

What is a secured loan?

Let’s start off by defining what exactly is a secured loan. As the name suggests, secured loans are personal loans that require a security, typically your home or your car or any eligible property you own. The loan is secured against said asset. Depending on your preference and the value of your security, you can borrow at least £10,000 payable in one to 25 years or longer.

Since secured loans involve a collateral, they are less risky for lenders hence the lower interest rates. There’s just one major downside, however. In the event that you can’t repay the loan, your lender can repossess your property to recover their loss.

What are the types of secured loans?

There are several types of secured loans offered in the UK market. The most common of which are homeowner or home equity loans, mortgages, car loans and some debt consolidation loans.

Mortgages are loans that are secured against the property you are buying. If you’re hoping to buy your first home, for example, your lender, which in most cases is a bank, can foreclose the property if you fail to keep up with the mortgage payments. This type of loan typically takes 15 to 30 years to pay. You’ll also need to provide a down payment equivalent to 10 to20% of the property’s selling price.

Car loans work similar with mortgage loans where the car you are buying serves as collateral. This type of loan is perfect for those who are in the process of buying their first car. If you only have 10 o 20% of the down payment, a vehicle loan can help you get the car that you want. Like with mortgage loans, you’ll get tied with monthly repayments, which can lead to vehicle repossession if left unpaid.

Though not all debt consolidation loans are secured, this is one type of loan you may want to check out if you are planning to consolidate all your other debts into one monthly repayment. Debt consolidation loans may be secured against your home, which again means repossession in the event of nonpayment.

Other types of secured loans include title loans and savings-secured or CD loans. With title loans, you take out a loan against a fully paid vehicle. These are also known as logbook loans where you hand over your car’s V5 document to your lender. It’s now quite popular in the UK for its promise of quick cash especially for people with bad credit. No credit checks are run on applicants hence faster and super easy to avail that mortgage loans or vehicle loans.

Another option for people with poor or little credit history is a personal loan secured against CDs or savings accounts. When you opt this route, what happens is that your lender, usually the bank, freezes or holds the funds in the account. You can borrow up to 95% of your CD or savings funds while the 5% is what your lender earns for interest and other related loan costs.