The Link between Logbook Loans and Personal Credit Score

If you have a poor credit score, requests for a loan from conventional lenders will be rejected on first sight. You are a great risk and lending any cash to you is considered a great liability. The only place left to get credit is from lenders who do not factor the personal credit score such as logbook loan companies.

While it is true that the main factor that most logbook loan lenders are interested in is the capability to repay, there is a clear link to credit score. In this post, we bring out this link and demonstrate why you should make improving the credit score a priority.

Default can be reported to credit reference bureaus

When people take logbook loans, the likelihood of sinking deeper into financial turmoil is very high. In addition to the common risks such as losing the family car and hefty penalties, the lender can report cases of default to the credit reference bureau. This means that your credit score will become worse.

Because logbook loan companies are legal entities, they can file default reports directly to the credit reference bureau or capture the details in their bank details. In either way, the credit reference bureau will note you and degrade the credit score until the entire loan is cleared.

Logbook loan lenders can assist clients to fix poor credit score

Though your credit score is already poor, the logbook loan dealer can assist to address it. However, many people rarely appreciate this special role of the logbook loan lenders. If you select the logbook loan company carefully, the lender can assist in the following ways;

  • Helping you understand personal credit score and how it works
  • Helping you craft a good financial strategy for clearing loans and marching to financial freedom

Do not simply look at the logbook loan companies as entities out to make the highest possible profits. They also want to create a good image from a clients’ viewpoint. This will make them win more customers. Remember always to engage the lenders early enough before things get out of hand.

Allowing the lender to automatically draw monthly payments can worsen the credit score

One of the methods used by borrowers to prevent forgetting regular monthly loan repayment is allowing the lender to automatically draw from the account. This means that you can stop worrying about the loan because all monthly payments are cleared on time. However, if your salary is late or cash is not enough, the lender can get an overdraft. This will sink you deeper into financial trouble because it is still a form of borrowing.

Logbook loans often make people forget other loans

The risks that come with logbook loans are very many. To avoid them, many people prefer directing as much cash as possible to clear the logbook loan at the expense of other loans. Consequently, the factors that pulled down the credit score remain unattended. This means that by the time the logbook loan is cleared, the credit score will still be poor. Therefore, it will still be impossible to get a loan from the bank. The chances are that you might end up taking another logbook loan.

To sail through a logbook loan effectively and draw more value, it is important to plan appropriately. You need to think about repayment and how to address the damaged poor score. If you find it too much, do not hesitate to seek assistance from a financial expert.


4 Things That Land People into Financial Problems after Taking Logbook Loans

A logbook loan is a credit line of last resort. Many people only resort to it after all the other avenues are exhausted. The risks involved in taking a logbook loan often push many borrowers deeper into financial turmoil. Despite these risks being known and highly publicized, a lot of people still find themselves sinking deeper into financial trouble after taking logbook loans. This brings us to the question; what are the main reasons that land people in more trouble after taking logbook loans.

Not picking the right logbook loan lender

The logbook loan lender you pick is the main determinant of the success to anticipate during repayment. If the logbook loan company has a very high-interest rate, you will have a huge repayment burden. But the interest rate is not the only thing to look for when picking a logbook loan company. You should also focus on checking the following things;

  • Check for a lender with good terms and conditions for the loan
  • Only work with the company that does not include unnecessary/hidden charges
  • Select the company that has a good reputation in the UK


Drawing a poor credit repayment plan

Once you decide to go for a logbook loan, the greatest mistake one can make is drawing a poor repayment plan. A bad plan will make it difficult to follow with monthly payments and result to defaulting. To draw a good plan, you need to factor the revenue available and focus on clearing all the available debts. If the revenue streams are not enough, you might need to consider areas of austerity in personal lifestyle. Make sure also to factor other personal expenses.

Directing all personal revenue into clearing the loan only

While it is true that some loans such as payday and logbook credits are very risky and require special focus, directing all personal revenue there is a big mistake. Just like an issue arose and forced you to take a logbook loan, there is no guarantee that a new problem will not emerge along the way. Therefore, while the bulk of the revenue should go towards clearing the risky loans, a significant portion should be directed towards creating an emergency fund. If there is no emergency fund, even small issues will force you to get a new logbook loan.

Working on the logbook loan without focusing on improving credit score

The main reason that pushes many UK citizens to borrow from logbook loan dealers is poor credit score. But many are the people who forget about this reality the moment logbook loan cash reaches in their accounts. However, this is very dangerous because you will still be in the same trouble that made you look for logbook book loan.

Once you get a logbook loan, it is important to start crafting a way of raising the credit score. This should start from understanding the causes of poor credit score and starting to address every issue that had lowered the personal score. For example, you need to start building a good credit history, clear the outstanding loans and get the right credit mix.

While the logbook loans have received a very negative publicity, the truth is that you can wade through and emerge a better person financially. Always remember that the key to financial success if good planning. Simply plan well, make some austerity measures, build an emergency fund, and increase the streams of revenue are the initial steps towards financial freedom.

4 Benefits of Making Your Logbook Loan Dealer A close Friend after taking a loan

When you decide to borrow a loan, the lender should be a close friend. If the lender is a conventional bank, the services offered will go beyond the loan. In many cases, the services could be the missing link to help your business march to the next level. However, when the credit score is low, the available loan options are very few. One of these options is the logbook loan.

A logbook loan is a form of credit secured against your car. It is considered the option of last resort because of the multiple risks involved. If you take a logbook loan, it is very important to prepare appropriately. More importantly, you should make the lender your closest friend to enjoy the following benefits.

Easier negotiation on APR and loan agreement

Many people hold the view that logbook companies have fixed interest rates. This is a misconception. Unlike banks that have the same interest rates all the branches across the UK, the logbook lenders operate differently. If you take the right approach, the lender will adjust the rates for you. When you make the lender a close friend, it will be easy to negotiate for better APR.

The best way to have the rates adjusted downwards is presenting an offer. If the lender has an APR of 210%, go ahead and present what you consider ideal for you. For example, ask the lender to give you a loan with an interest rate of 150% APR. The lender will have to talk to you for a better rate such as 170%. The drop will be significant when calculated over a number of years.

Assistance with improving personal credit score

The main reason that has landed you at the logbook loan dealer is poor credit score. After getting turned down by banks, it is only the logbook loan companies that are willing to assist you. However, making the lender your friend will make him go an extra mile in assisting with credit score improvement.

  • The lender will help you understand what credit score is and identify where things went wrong in your situation.
  • As a friend, the lender will assist you to craft a debt management plan. This will not just help in clearing the logbook loan, but all the other debts too.

Avoiding falling into further financial woes

Now that you have borrowed from a logbook company, it is important to appreciate that issues can arise and force you to default. For example, if you lose the only source of income, the chances are that the lender will recover and sell the car. But it does not have to be that way if you are a close friend to the lender.

  • The lender will help you identify areas of austerity and directing the cash to clear the loan.
  • Good lenders will assist you to automate monthly payment to avoid unnecessary penalties.
  • If repayment becomes completely impossible, the lender will assist you to weigh the options of last resort such as selling the car.

Support in increasing personal streams of revenue

The moment you settle for a loan, everything narrows down to budgeting. While you might have thought that all the sources of revenue are exhausted, a good lender will demonstrate how to raise extra cash while keeping the expenses minimum. Here are some great examples.

  • Redesigning your home to make some rental units.
  • Using the garage to run a side business such as baking cakes
  • Doing part-time job in your area of profession to raise additional cash
  • Working online in your area of specialization to raise more cash

When you identify a good lender, it pays to consider him a personal friend. As you put a lot of effort in clearing the loan, a friendly lender will give helpful advice on creating new streams of revenue and marching to financial freedom.


Making Your Logbook Loan A Stepping Stone to Financial Freedom

Every time that the name logbook loan is mentioned, what comes to people’s minds is a person who is in a financial crisis. This is true. In many cases, people looking for logbook loans have a very low credit score. This makes banks to reject their loan applications because of the high risks involved. However, getting at this point does not mean you cannot reach financial freedom. Here is the story of Michelle Grogan who overcame all odds to become a better financial manager after taking a logbook loan.

How Michelle sank into financial problems

Michelle Grogan, an industrial worker at a Bakery in London, was living a great lifestyle. As a single mother of one daughter, she felt successful because she had just completed paying her mortgage. However, she still had many loans that required a couple of years to clear.

In spring of 2015, Michelle’s daughter fell ill and was admitted to hospital for 6 months. This drained Michelle’s resources leaving her with no money to service her loans. Two months before her daughter was discharged, she took a logbook loan of £3500 against her car to cater for the fast-growing expenses.

Things ran from bad to worse when she lost her job a month after her daughter was discharged. At that point, she was pressed by the different debts, the logbook loans, and other expenses that come with taking care of a sick person.

Getting out of financial trouble and walking to financial freedom

  • Seeking and implementing recommendation of a financial expert

Seeing that the remaining sources of revenue could not cater even for the logbook loan, she had to seek an urgent solution.

  • She sought assistance from a financial expert who advised her to consider selling the car immediately. But this could not be done directly because the ownership documents were already deposited to the logbook loan company.
  • To get more from the car, Michelle searched for a buyer and went with him to the lender. She explained her situation, and the vehicle was sold for its total value of £ The lender deducted his loan of £3500, and the remaining £4000 was deposited in Michelle’s account.
  • Opening a new stream of revenue

The financial expert did not stop there. He was very concerned that even after clearing the logbook loan, Michelle’s problems were far from over. She had to also clear other loans. Therefore, she recommended that Michelle start a business to get new streams of revenue for clearing the remaining debts.

She converted her garage into a bakery and acquired baking equipment using the £4000 from the car sale. She also opened a website and started selling baking related recipes. With her daughter assisting with website administration and managing orders and Michelle working on deliveries, the business grew rapidly.

They enlisted services of another employee who helped to raise production and revenue. So successful was Michelle’s bakery by June 2017 that she incorporated her baking companies as bigger orders came knocking.

  • Improving personal credit score

As the company grew, Michelle designated some cash for clearing other loans. By mid-2017, Michelle had cleared all the loans, and the banks were now approaching her to assist with loans. By roping in the financial expert who assisted her, Michelle is walking towards financial freedom by implementing the following things;

  • Setting enough emergency plan to cater for any emergency
  • Insuring the business and her family’s lives
  • Diversifying investment by acquiring bonds and new real estates
  • Buying shares in other highly successful companies
  • Teaching her daughter about budgeting and financial management

Sinking to the bottom of financial trouble does not mean you cannot rise and be successful. Even if you take a logbook loan because of poor credit score, make sure to get expert advice on financial management. If Michelle managed to get out of debts stronger, you too can march to financial freedom.

4 Great Things That Logbook Loan Lenders Can Do For You

Logbook loans are loans advanced against your vehicle. The owner gives away the ownership of the car to the lender until the entire loan is paid. When compared to conventional loans, logbook credit is very expensive. In fact, people are advised to consider it as the credit option of last resort.

A closer check at most logbook lenders in the UK reveals that they have very high APRs (annual percentage interest). Some charge as high as 400% APR. But this is not the only risk.

  • There is a risk of getting the car taken away in the case of default
  • The danger of sinking deeper into financial turmoil
  • The peril of losing the family car (car is the 2nd most valuable asset after house in many homes)

While these risks are indeed true, you can still enjoy a stress-free repayment period by selecting the best logbook company. Great lenders understand their clients and are willing to go to great lengths to help. Here are four special things that a logbook loan company can do for you.

Adjusting the APR

The interest rates of logbook loan companies are very high. That is true. But it does not mean that they are fixed! Logbook loan companies are in business and will not agree to lose clients because of the interest rates. Talk to them, and you will realize how ready they are to adjust the APR downwards. Here are two common methods of getting your logbook loan APR adjusted downwards.

  • When applying for the loan, check for companies that have lower rates and ask the preferred lender for lower rates.
  • Put forward a proposal for lower rates. If the lender is giving his loan at 299% APR, put forward an offer of a lower rate such as 270% APR.

Assisting you to avoid defaulting

Defaulting on agreed repayment schedule of the logbook loan can be very expensive. The penalties are too high and could easily skyrocket the total repayable amount to very high amounts. However, logbook loan companies are not interested in penalizing you or even selling the car. Most of them want to strengthen their brands by helping clients to stay on the payment schedule. Here is how the lenders can help you avoid defaulting.

  • Automating monthly deductions so that you will never miss on repayment
  • Creating a reasonable repayment period (for example, if your salary is late with a week, there is no penalty attached to short inevitable delay).

Anchoring you from falling into financial abyss

Notably, many people go for logbook loans as an option of last resort. But the loan is not a guarantee that things will ease up immediately. In some situations, things have even become worse. But the lender is there to help you from sliding into a financial abyss.

Take a situation where a borrower borrows ‎£3,000 against his car with a total value of £7,500. After paying the loan without delay for three months, he loses a job and does not see any other way to continue making payments. In such a situation, you simply need to talk to the lender, and he will assist you in the following ways;

  • You agree that it is no longer possible to continue meeting the monthly remittance. This will help to avoid unnecessary penalties and charges.
  • The lender and borrower may agree to sell the car so that the lender gets his cash and you can take the excess.
  • Because you already have the car, the lender can task you with the role of getting a buyer. This means that you can negotiate with the highest bidder.

Helping you improve personal finance skills

Many logbook loan dealers are financial experts while others employ top brains to help their clients. The experts will help you to understand the current situation and identify methods of edging towards financial freedom. Talk to your lender for assistance with budgeting, improving credit score, and investment.

While logbook loans have won a very negative tag in the market today, you can still get more and emerge stronger. Remember that everything starts with picking the right logbook lender.


Tips On How To Keep Your Car in Top Notch Shape

If you love your car, you will want it to always be at its best shape. There are some conscious steps that you can take to ensure that it stays as good as new every day. They are as simple as ABC and there is no better time to follow them than now.


Your car’s tyres are the single most reason you can move. Respect your tyres. They support a weight more than ten times theirs and still absorb any and all of your driving habits. Keeping them in top shape should not be anything but a priority. Good tyres are Important not only for fuel economy but for safety as well.

To ensure they are in their best shape, rotate your tyres at least every 5000 miles. This will ensure that your car’s tyres wear at an almost equal rate and that you make great savings on tire replacement.

Another important trait of tyres which are in good shape is that their tire pressure is always correct. Over inflation and under inflation are both harmful to the longevity of a car’s tyres.  They also pose a safety risk.

While at checking the tyre pressure, do have a look at your tyres tread depth. When it is evident that they are too low, replace the tyres. Worn out tyres pose a safety risk that is not worth it. The tread patterns may also reveal something about the overall health about your car, so if you notice they are uneven, take the car to a competent mechanic. A mechanic consultation may save you from the detrimental effects of whatever is ailing your car and also potentially increase your tyre life.

Hand in hand with the tyre is the brakes, which basically stop you from colliding with objects. While all car parts are important the importance of well-functioning brakes cannot be understated. To ensure that their functioning capability does not deteriorate faster than necessary, clean them regularly.


When it comes to the engine, the heart of your car, you can expect good results only when it runs smoothly. An engine in bad shape is nothing more than a death trap waiting to happen. You do not want that. It’s better to have a good engine than a good car body. Some of the tasks you can perform to ensure the engine’s runs efficiently are simple and you can do it in a few minutes

One of the simple engine checks you should make is assessing timing belt and accessory drive belt. They are responsible for the smooth running of everything from alternator to the a/c compressor. However they are made of rubber and rubber perishes very fast. It is prudent to check them every 25,000 miles and preferably checked every 50,000 miles.

Another easy task anyone can perform is checking the oil level of a car. It is a simple process that involves pulling out the oil dipstick, wiping it clean with a rag and then re-dipping it so as to check if the oil levels are too high or too low. This is easy because the dipstick is marked with an H and an L indicating whether the levels are high or low. The longevity of your engine is dependent on the quality of your engine oil. The engine oil is critical to good performance of a car. It is responsible for lubricating car parts and ensuring the engine remains cool.  You can never check and or change the engine oil frequently enough but being guided by the oil’s viscosity is a good indicator on the urgency of an oil change

Classic Cars Pros and Cons

Classic cars’ beauty depend on the eye of the beholder.  While some marvel at the cars of old, others simply scoff. How they are perceived is solely dependent on a person’s individual preferences.  However, they, just like many other things, are a double-edged sword. Considering them a must-have or dismissing them in their entirety is not a decision that should be made without a complete picture of the effect of the cars on their owners.


Classic cars are very much unlike modern day cars which depreciate in value over time. These cars share the unique quality of appreciating in value over time.  This means owning a classic car is very comparable to owning a piece of art, an investment. As long as the car is well taken care of, your car will have you smiling all way to the bank if you resell it in the future. This is definitely something to keep in mind when mulling over classic cars. They may not look it but they do not come cheap. Purchasing one which is in good condition may cost you an arm and leg. This may be due to the hotcake demand that surrounds them or the tendency in the world to regard outdated inventions as relics, there is no clear-cut answer. What is known is there are classic enthusiasts willing to pay big bucks for a classic car without a bat of an eyelid.


One of the drawbacks of a classic car is the expensive cost of keeping it running. Maintaining it is no walk in the park.  In an increasingly modern-car world, classic cars are a rarity. Their needs may not be readily available. It may prove extra costly and to be a hassle to meet these needs. Additionally, the frequency with which you need to make these maintenance tasks will be higher than those of a modern day car. Due to their age, their level of efficiency is lower than that of modern-day cars making their servicing needs more frequent and the effect of lack of, more damaging. It may also be important to note that their age also limits the number and type of mechanics that can be trusted to perform maintenance. Not any Tom, Dick or Harry can handle this car. The rarity of competent mechanics has the added disadvantage of inflating the price of simple maintenance jobs. It would be prudent therefore to learn a few one and twos on some of those tasks due to the nature of their frequency if you want to save on costs.


Another edge that classic cars have is their unique style. They come from an age where car models were not homogenous because car shapes had not yet been standardized. Cars from different manufacturers were extremely distinguishable. The same goes for car models. This is very unlike today’s cars where there is hardly a difference between different manufacturers and/or models. Modern day cars are pretty much a lot of the same thing. Furthermore, since they are also not being manufactured anymore, they are still an awe to behold and still reveal the character of the owner from a mile away. A quality that classic car enthusiasts chase.

No mod-cons

Another disadvantage is that they have no modern day conveniences. This is something that is easily overlooked but important to remember. These cars were built in the age where car functions were largely in control of the driver. A lot of the functions that are automated now were not then. Therefore, you should not be expecting an automatic transmission system in a classic car among other automated features. In fact you should expect detrimental effects in the event of a manual error.

Can A Logbook Loan Make You A Better Financial Manager?

Many people believe that going for a logbook loan is the lowest point that they can sink in their lives. Experts advise people to only use logbook loans as the option of last resort. However, the fast growth of the numbers taking logbook loans in the UK is worrying. Even with the high APR (annual percentage rate), extensive risks, and dangers of having the car recovered, can anything good come from the logbook loans? There is a silver lining in this precarious situation. Here is a closer look at Robert Johansen situation that made him emerge a better financial manager.

How Robert ended up with very poor credit score and sought a logbook loan

During the summer of 2015, Robert Johansen took a logbook loan because his credit score was very poor. The poor credit rating had come about from overspending on his credit card and defaulting two bank loans when his daughter fell ill. As a college teacher, all his resources were directed to handling his daughter which meant defaulting on the mortgage and even personal utility bills. Things ran from bad to worse within six months.

With only his car left as the most valuable asset, Robert saw no other alternative but to get a logbook loan. However, he sought advice from a financial expert early enough after borrowing the logbook loan. This is what made Robert emerge as a better person, create new streams of revenue, and march to financial freedom. Here are some great things that can come from a logbook loan.

Learning how to budget and applying the skills in other areas of personal finance

Perhaps the most important thing that one can learn from logbook loans is budgeting. Because there are other loans, credits, and personal expenses to be met, one has to learn about budgeting. If you seek assistance from a financial expert, he will assist you to classify different expenses and direct the resources to those that are more important. When these skills are applied in other areas of personal life, you will emerge from the logbook loan and other debts a better person.

Appreciating the role of experts when handling subjects from areas outside your jurisdiction

If you are not an expert in a specific field of specialization, the best thing is seeking assistance from experts in that area. This philosophy comes out very well when one is handling a logbook loan. Though you might be in nursing, hospitality, education, or engineering among other areas, it becomes easy to appreciate that finances is a different field altogether.

In Robert’s situation, the financial expert came in handy to help him appreciate the importance of good financial planning. He was able to acknowledge the sources of finances and how to spread the resources to cover all the expenses while meeting the loan obligations. You should never make the mistake of allocating the entire salary to repaying the loan only without catering for all personal expenses such as rent and transport costs.

Acknowledging the challenges that lay ahead in quest reach financial freedom

The main road to financial freedom is marred with numerous challenges. However, you can easily overcome them after successfully addressing logbook loans. Robert understood the dangers that come with poor credit score. This appreciation makes people work harder to ensure they are in good terms with lending institutions that have lower rates.

Robert further appreciated the importance of having several streams of revenue. If one fails, there is always a fall back plan to prevent you rushing to high interest and high-risk sources of funds. Think of running a blog, opening a business for other members of the family, and working on a part-time basis after work.


Why You Should Seek Assistance from a Financial Expert after Taking a Logbook Loan

The number of people taking logbook loans in the UK and defaulting several months down the repayment line is very high. The moment you end up knocking the door of logbook loan lenders is a clear indication that there is a problem and urgent assistance is necessary. Recently, laws have been passed to regular the Payday loans to try and cushion the borrowers from harmful practices. However, logbook loans are not well regulated, and many borrowers end up paying a lot in interest charges. Many have fallen deeper into financial woes after defaulting repayment of their logbook loans.

To prevent the logbook loan from becoming a debt trap, it is important to seek expert assistance. In this post, we establish why seeking expert assistance is very crucial after taking a logbook loan.

Financial experts help borrowers trace back the source of their issues

Financial professionals handle issues from clients with even worse situations in the past. The secret of getting out of the current issue is to understand its genesis. The experts will help you trace the origin of the financial woes and use simulations from other clients to look for realistic solutions. For example, you might have sought an emergency loan from a bank and subsequently lost your job. This can throw the repayment efforts into a dilemma.

A financial professional will help you to carefully look at personal lifestyle and create important financial pillars to cushion unexpected demands. For example, an emergency fund can provide all the funds for media assistance so that medical issues do not warrant seeking a loan.

Experts are important in drawing debt management plans

If the banks declined the application for loans, one of the main reasons might be poor credit score. Those with poor credit score are considered too risky, and banks prefer turning down their requests. Though you used the logbook loan as an alternative, a proper debt management strategy should be developed. This is where the financial expert comes in.

The finance professional will help you pick the right repayment strategy for faster clearance and freedom from debts. Depending on your situation, the financial expert might recommend the snowball method that involves attacking the debts starting with those that have low balances. Then, the repayment gains momentum as you clear the small loans until all debts are settled.

It becomes easy to improve personal credit score

While it is very clear that poor credit rating hurts personal ability to access loans, getting a higher score is never easy. Many people try for years only to find the score moving from poor to worse. However, a financial expert will make the efforts towards improving the credit score simple, realistic, and fast. Some of the best strategies recommended by experts in the UK include;

  • Borrowing from a personal account to build good history
  • Identifying areas of austerity to ensure that all the outstanding debts are cleared on time
  • Not overlooking even the common utility bills. They can also harm the credit score if referred to debt recovery companies
  • Checking and correcting errors in personal credit report with credit reference agencies

Borrowers can easily advise on additional streams of revenue

For many people seeking logbook loans, the argument is that they have run out of options. Well, a visit to a financial expert will surprise you because of the many alternatives suggested for generating additional resources. One good example is identifying areas of austerity that can release some cash. If you visit the theatres downtown every weekend, you can make some savings by subscribing to online movies. For others, a personal blog on an area of interest can help generate some extra revenue to help clear debt faster and accelerate you to financial freedom.