How to find the right logbook loan lender

Starting a logbook loan business is not as difficult as establishing a bank. So, don’t be so surprised that there are more V5 loan lenders out there than banks. When it comes to logbook loans, finding the right logbook lender may not be as easy as you think. Since there are a number of them out there, choosing one can be quite overwhelming!  Where do you begin? What should you search for in a lender? All these are questions you should ask yourself when picking a lender. Don’t worry though. Learn how to find the right one below.

Consider flexibility

When searching for a logbook lender, you need to know how adaptable they can be to your requirements. Take this situation for example. Most loan providers require that your vehicle be less than 10 years old in order to qualify for a loan. So, what if your car is older than ten years? Can the lender adapt to your situation? You need to make sure you know this before you apply for your loan. Otherwise, you would be wasting time. Luckily for you, there are some logbook loan lenders that can issue cash for vehicles that are over ten years old. They are not even that difficult to find. You could even search online. What you want is a lender that will satisfy your every need.

Compare quotes

If you have faced a personal financial crisis before, then you should know how easy it is to make the wrong decisions. Although you might be desperate for some cash, it’s important to ensure that you make rational decisions. Yes, loans could help you out but they also have their downside too. The last thing you want is paying logbook loan at almost double the principal amount you borrowed. Therefore, you need to thoroughly compare and contrast the quotes of various logbook lenders in the market.

Thanks to the internet, you can check out some of these quotes online. Have a look at the APR’s and select the one that is most favourable to you. Additionally, remember to check the repayment period. Usually, shorter periods have higher interest rates than longer periods. However, you might end up paying more interest in the long run. So, you need to be very prudent when it comes to this.

Ask around

It never hurts to ask around for a logbook loan lender. Spread the word that you are looking for a lender. Tell your family, friends, or even neighbours. You’d be surprised at some of the references you might get. Sometimes, your network can be more valuable than you think. Perhaps some of your loved ones have acquired logbook loans before. In some cases, you could even land a better quote just because your friend or brother connected you to a lender. However, don’t just run toward any referred lender. Do your due diligence and carry out your own background check.

Make use of the internet

Thanks to innovative technology, you now have access to unlimited information over the internet. So, why not take advantage of it and find logbook lenders online? While doing this, remember to start by searching for reputable logbook lenders in the UK. Always check out the ratings and reviews. What do other customers have to say? One comment can give you a lot of information and perhaps even better references. Apart from reviews and ratings, the internet would give you access to a wide variety of quotes for you to choose from. Sometimes, you could even get your loan online and thus save time and money.

Stuck With A Logbook Loan? Here Are Three Things You Can Do

A logbookloan is an easy way of getting fast credit against your vehicle. The loans are usually taken by people with poor credit score and cannot secure loans from other conventional institutions such as banks. However, a lot of people in the UK get stuck with the loans when they find it difficult to keep up with the agreed repayment schedule. What do you do when it gets difficult to continue repaying the logbook loan?

Things you must be aware when taking a logbook loan

When you settle for a logbook loan, it is prudent to be cognizant of the numerous risks that come with it.

  • The APR (annual percentage rate) is very high. In many instances, this percentage could be as high as 400%.
  • When you take the loan, the car ownership is transferred to the lender. You are required to submit the car logbook or V5C vehicle registration certificate to the lender.
  • The lender is allowed by law to come and take away the vehicle immediately if you default. However, most of them will not tow it away until you default for several months.

Taking into consideration that your credit score was already poor because of outstanding loans, the chances of finding it difficult and defaulting is very high. With the car being the most valuable asset after the house for many people, seeing it getting towed away and auctioned is painful. However, do not let that happen by using these three solutions.

  • Talk to the lender about the problem

Logbook loan companies are out there on a business and, therefore, will go to great lengths to make a profit. It is because of this that they charge very high interest rates on their services. Their interest is not starting lengthy battles with clients, but getting smooth payment to make a profit. If you find it difficult, to meet the agreed schedule, the first stop should be at the lender’s office.

Demonstrate to the lender why you can no longer continue paying the agreed amount and what can be managed on a monthly basis. For example, if you just had a medical problem and you only expect disruption for a few months before springing back to the agreed repayment level; most lenders will reason and agree. However, you must be prepared to incur additional penalties.

  • Talk to a financial expert about the problem

When people turn to logbook loans, they rarely think of reaching to the point of getting the vehicle towed away. However, the reality dawns on them when it becomes extremely difficult to service the high-interest loan on a monthly basis. But you can still address the problem by seeking assistance from a financial expert.

Top financial experts have handled similar or even worse situations. So your problem will not be a mountain. One solution recommended to many people is weighing the risks that come with all the loans and focusing on the one that poses bigger loss. For example, if you are servicing credit card loans, insurance loans, and other credits not attached to any collateral; they do not pose a risk of taking away the only family car. Therefore, you will be advised to put more focus on the logbook loan because the car is at a great risk.

  • Organize to sell the car and notify the lender

In extreme cases, you might need to reconsider the unfolding problem and work on tackling it head on. Well, take a situation like this. You have a car worth £5000 and have taken a loan of £1500. Now that you have gotten stuck, a good solution might be organizing to sell the car for £5000 and clearing the remaining amount in full. The balance of about £ 3000 could be used to acquire a cheaper and reliable family car. Remember that in such a case, you must involve the lender because he already has the logbook (owns the vehicle temporarily).