Logbook loans are the saving grace for people with very poor credit score. Because of the poor credit score, your loan options are very limited. Most banks will not want anything to do with you because of the risk involved. Even those who agree to lend you will demand collaterals such as a house. The best way out of the problem is getting a logbook loan.
While logbook loans have had very bad publicity because of high-interest rates and associated risks, they come with two unique benefits that make them very attractive.
The best option for damage control
When one is faced with an emergency such as an accident, there is a need for urgent cash to meet the unexpected bills. However, such bills do not only come because of related medical emergencies. You might need urgent cash to cater for marriage, death, handling a new contract that came too soon or even a holiday. Now, with all the lending institutions turning you away at first sight because of poor credit rating, a logbook loan is one of the best options for damage control.
In some cases, people take logbook loans to clear other loans. This allows them to only concentrate on paying a single logbook loan to avoid defaulting. Even if you have poor credit score, do not let the outstanding debts pull you down any longer. You have the option of taking a logbook loan for damage control and reducing the stress of handling multiple loans.
Notably, the logbook loans are more flexible compared to the conventional bank loans because borrowers can negotiate the APR, terms & conditions, as well as the repayment period. Do not simply take the rates offered by lenders; negotiate for better terms.
An opportunity to address long-term credit problem
In addition to the fact that a logbook loan is easily accessible, you will also enjoy long-term credit related benefits. If you have poor credit, accessing credit in the UK is an uphill task. But hold on. One of the solutions for addressing poor credit score is demonstrating commitment and ability to repay on time. Therefore, how is that possible when you do not have access to loans? At this point, you need to work for a reliable solution that can help to address the problem conclusively. This is where logbook loan comes in.
Because logbook loan companies are willing to lend cash to all, they present a unique opportunity to address the credit score problem and march to financial freedom. One, you can clear the existing debts and continue dealing with a single lender. Because credit reference agencies use the outstanding loans as an important factor in calculating the credit score, the score will improve significantly.
Some people also use the logbook loans to increase their streams of revenue. Some use the cash to start side businesses. For example, you could start a baking venture and supply the cakes to neighbourhoods. In other cases, creative people can use the cash to redesign part of their homes to create a rental unit.
The final take
While it is true that the risks involved in logbook loans are many, you can use the credit to redefine personal financial future. Notably, you should be extra careful when selecting lenders by reading reviews, negotiating for better terms, and clearing the loan as fast as possible