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.

How to Win Trust in Your Bank after Taking a Logbook Loan

Many people who turn to logbook loans consider them the option of last resort after other applications are declined by conventional banks. However, logbook loans are only a short-term solution to your financial problems. Within a couple of years, you might require a bigger loan to finance other projects such as real estate operations or even business. Therefore, the faster you get through with the logbook loan, the better. More importantly, you need to start building trust with the bank so that they consider you a less risky party. Here are some useful tips on winning trust from banks.

Ensure to keep the accounts with the preferred bank open

Though the bank is not willing to lend you at the moment because of the risk involved, it does not want to lose you as a client. After improving your credit score and building multiple streams of revenue, the bank will easily resume lending you compared to a new client. However, it is imperative to ensure that the account is active to demonstrate you can sustain loan repayments.

Work hard to improve personal credit score

Your credit score is perhaps the biggest indicator of an individual’s creditworthiness. By improving the credit score, all banks will be ready to approve the loan during the next application. Here are some useful tips for raising your credit score;

  • Check and correct any error in the personal credit report by three credit reference agencies.
  • Ensure to meet your credit obligations especially regular bills on time.
  • Consider debt consolidation loan using home equity to enjoy lower interest rates and make repayment easy
  • Consider borrowing from your own account and building a good repayment history

Craft a workable debt management strategy

Every lending institution wants to see a workable plan that borrowers are using to move on to the next step. As you continue repaying the logbook loan, having a long-term financial plan is very important. Depending on the amount of revenue streaming into your account it will be easy to convince banks you are a reliable borrower and do not present any risk. For example, you can include multiple sources of revenue such as a home baking business, salary, and stock market trading to help clear any loan faster.

Adopt serious austerity measures by changing personal lifestyle

As you apply for the logbook loan, it is important to ponder what exactly resulted in the current precarious situation. Whether it was an emergency or piling bills, the experience should help you emerge wiser. One way of preventing recurrence of such situations is serious austerity measures. For example, you could consider buying a smaller car with better fuel economy or even ride to work every day. Then, some of the freed money can be used to repay the loans and build an emergency fund.

Consider using collateral when borrowing from the bank

Even if a bank is not willing to lend you cash because of poor credit score, good collateral will easily make them reconsider the application. In many cases, banks will consider your loan application for borrowers using home equity or their vehicles. The collateral is a demonstration that you take the loan very serious and can go to great length to prevent the asset from getting auctioned to recover unpaid debts. However, you must be extra careful when attaching your home equity to the loan because it can be sold by the lender if you default.

While taking a logbook loan is considered the lowest moment that a person can sink to because of the risks such as high APR, it is paramount to start rebuilding trust from the current financial institutions. By looking at the situation from a long-term perspective, it will be easy to make banks and other financial institutions your partner because their credit is flexible and attracts lower interest rates.

Five Things That Can Make a Logbook Loan Sink You Deeper Into Financial Trouble

Once you decide to go for a logbook loan, it is important to appreciate the risks that lay ahead. In many cases, it is considered the credit of last resort because most financial institutions have declined loan applications. Like financial experts point, the logbook loan should only be used with a lot of caution. In this post, we look at five key things that can make you sink deeper into financial trouble after taking a logbook loan.

Prioritizing payment of other less risky loans while giving less focus to the logbook loan

The moment the lender approves your logbook loan, it is important to appreciate that a lot of dangers lay ahead. Because you have already given away the car documents, the risk of losing it becomes real. Failing to prioritize the logbook loan when repaying other bills can only worsen your present credit situation. While other debts need to be cleared as fast as possible, those that do not come with a lot of threats can wait until the riskier logbook loan is cleared. For example, the student loan can wait for a couple of months because it does not attract any interest and no collateral is attached to it.

Taking the maximum that the lender has to offer as opposed to what you need

For many people who have been declined loans by banks, a chance to borrow looks God sent. However, this is a trap that makes most people to nosedive into the sea of trouble within no time. Even if the lender is willing to offer £30,000, but you only need £2,000, consider going for what is needed only.

A bigger logbook loan means that you will repay for a longer time with higher interest rate. Repaying a lot of cash every month for a long time is bound to cause fatigue and raise the chances of defaulting.

Hiding from the lender when meeting monthly payment becomes difficult

If you realize that the sources of revenue are having issues and meeting the monthly repayment is becoming difficult, running away will only worsen the situation. The loan will accrue a lot of interest, and the lender will start looking for the car to recover the money. Instead of running away, it is advisable to visit the lender and tell him what you are going through. Though some additional interest might be incurred, some good lenders will even allow you to readjust the repayment amount for a few months until your issues are resolved.

Failing to relook at personal spending and reworking on the budget

Financial experts in the UK and banking institutions have found that many people get into trouble with personal finance because of poor budgeting. This problem can make things worse by drawing you deeper into the turmoil of debt.

After getting a logbook loan, it is important to relook at your budget from a different angle to help release some cash. If you find it difficult to achieve this alone, make sure to seek help from a financial expert. A good budget will help you to look at personal finances from a long-term perspective.

Looking at the logbook loan in isolation

Personal finance is not about the logbook loan only. To reach financial freedom, it is important to have a bigger picture and factor the loan in the budget. If you look at the logbook loan in isolation, the chances of sliding back into the situation you are in are very high. When drawing a financial strategy, experts advise clients to look beyond the logbook loan and other credits. For example, the austerity measures you adopt should be implemented to help clear the loan, build an emergency fund, finance personal businesses, and create new lines of revenue.

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).

Four Most Important Things You Must Know Before Taking a Logbook Loan

A logbook loan is one of the easiest lines of credit. They are processed fast, and your credit score is not a factor like in other financial institutions. However, borrowers have been cautioned to be extra careful when taking logbook loans because of the numerous risks that come with them. In this post, we outline the four most important things that you must know prior to taking a logbook loan.

The difference between APN (Annual Percentage Interest) and other bank rates

Logbook loans attract high-interest rates compared to conventional credit from banks. While common banks offer their credit at interest rates of as low as 5%, most logbook loans have as high as 400% APN. Take an example, of Mobile Money Logbook Company that has an APR of 99.9%. Therefore, a client who borrows £1000 for a period of 18 months will be charged £665.10. The client will, therefore, pay a total of £1665.10 by the end of the repayment period. Having a clear picture of this interest rate will help you to plan appropriately. Note that this is just one company; others might have higher interest rates.

Financial impact for non-repayment

Once you sign the agreement and the loan is released to you, it is prudent to make the monthly payment on time. Because every logbook loan lender has individual rules that govern actions for non-repayment, it is very critical to read through the respective policies. The main financial implications include the following;

  • A harsh penalty could be slapped on you. This will raise the total amount you will pay by close of the repayment period.
  • Because the loan is taken against your car, the lender could come for the vehicle and sell it to recover the money.
  • If the lender sells the car and the amount raised is not enough to clear the loan, the lender will still come after you to recover the balance. You will be sued in a court of law to help recover the balance.

Non-repayment implications on credit score

While logbook loans do not factor your credit score when you are applying, things change in case of non-repayment. Because the logbook firm is a licensed lender, he is allowed by law to provide credit, and his report to the credit reference bureau will further damage your score. Since most repayments are made through banks, they usually include info pointing your details and inability to repay the loan. It is, therefore, very critical to ensure that you make all monthly payments on time.

The flexibility of the lender

The lender you go to for a logbook loan is very important for a smooth repayment session. Many are the times you will get reports of people’s vehicles being towed and getting auctioned because they failed to remit monthly dues. When you select the lender, it is important to get it right on all the particulars of their flexibilities.

Establish whether the lender can renegotiate the deal in the case of financial difficulties: If you had agreed to remit £ 90 every month, but you are finding it difficult, the best lender should agree to renegotiate. For example, the figure can be lowered to about £80.

Find out how fast the lender moves to recover the vehicle if you fail to remit monthly dues: Because you have already surrendered the ownership of the car by taking the loan, the lender is at liberty to come for it any time after defaulting. However, you should borrow from a lender who is not hasty to take the car away. Some will look for you to find out if there are difficulties and work for ways to address the issue.

What to Consider Before Taking out a Loan on Bad Credit

It isn’t always the best solution to a financial crisis, but in desperate times getting approved for a loan even when you have less than ideal credit is the only way out of your predicament. Here are some of the first things to consider before biting the proverbial bullet.

Think of the Repercussions

One of the more obvious consequences of borrowing money on bad credit is the potential for getting even worse credit. This is due to the fact that lenders need to protect themselves and cover the risks of granting loans to people with bad by offering high-interest loans. And if for any reason you default on your payment, then there go your hopes of eventually improving your credit scores.

But that’s not even the end of it. If you somehow come across a low-interest loan offer despite your credit, chances are, there will be plenty of hidden fees on top of your payments. The low interest fees might have just tempted you into signing up for a loan that you didn’t think was going to be so expensive to pay back.

 

 

Look Around

Borrowing options for people who have bad credit are rare, but definitely not non-existent. However, if you are looking into borrowing money on bad credit, you must be able to discern which of these options suit your needs best, as some of them can lead to more financial problems than they’re worth.

For instance, credit card companies will gladly talk to you and lend you money via a cash advance, despite your less than spectacular credit standing. Cash advances are not that difficult to get approval for, but they often come with huge fees and finance charges that can leave you in worse financial shape than before. It is similar to borrowing money to pay for a previous loan; eventually the arrangement becomes increasingly difficult to maintain and manage. Before you know it, you’re credit is ruined.

Whenever possible, and depending on how much money you’re looking to borrow, try to look for alternative borrowing options that won’t impact your credit rating. Examples of these include asking friends and family for a loan, usually with very little to no interest. Not being able to pay them back won’t affect your credit.

 

Think Long Term

If you’re desperate enough to take out a loan while your credit rating is in shambles, at least consider how paying the loan back can help raise your credit scores. Talk to reputable lenders who can accurately report your payments to the different credit bureaus, and help you formulate strategies on how to raise your credit scores. But none of that will matter if you don’t make your loan repayments on time.

Remember What You Need It For

Your situation may be dire enough for you to resort to borrowing money on bad credit, leaving you with very little room to negotiate with lenders. It’s possible that you may have just lost your job, fallen sick, or gotten into an accident. Remember what you need the loan for, then try your best to make your payments on time. Sometimes, it just takes a little bit of sacrifice in order to get you back on your feet. Good luck!

Five Must Do Things to Stay From Trouble after Getting a Logbook Loan

The number of people borrowing logbook loans and finding themselves in trouble has risen sharply in the last decade. Some often get late with payments while others have their vehicles taken away and sold to recover the loan. These are not the only problems. Many are those who take the loans but live with a lot of stress for the entire repayment period. However, you do not have to get into any of these problems when you use the following tricks.

Make sure to look for the right logbook company

The first step in staying away from trouble is selecting the logbook company carefully. In the last 20 years, the number of logbook loan companies has grown tremendously. You should vet every company carefully so that only the best is selected. For example, you should carefully review the companies and leave out those firms that rush to collect clients’ cars within days of default. The best way to know about a god company is talking to previous clients. They will tell you how the company related with them and even advise whether to proceed or not.

Carefully read through the terms and conditions before signing the agreement

Once you sign the agreement with the logbook loan company, it is required that you adhere to all the conditions. Many people find themselves in trouble because they never read the rules and are caught by surprise. You must, therefore, carefully read through the instructions to know the limits. For example, if the agreement requires you to pay on the tenth of every month, you can reorganize finances to meet the targets.

Do not stop at reading the agreement, go ahead and ask for a review. Note that logbook companies are in business and look forward to having a happy customer base. Therefore, when you ask for some minor changes, they will not be opposed. For example, if one of the rules indicates that you must meet the monthly payment on the first day of every month; there is a likelihood of defaulting in the case of salary delays. Ask the lender to relocate the payment date to any day after 20th of every month. With such changes, you are sure of meeting the deadline even if the salary is late with a week.

Review all your debts and start paying with the logbook loan

In many cases, people go for logbook loans because they have been turned away by conventional banks. To get out of the debt burden, it is important to start clearing the loans commencing with those that have high-interest rates such as logbook loans and credit card loans. By putting the logbook loan on top of the repayment list, it will be unlikely to default. Note that we do not imply that you should default, but, in the repaying the logbook loan will not be affected in case of issues with your revenue flow.

Consider opening new lines of income

If you entirely rely on salary to pay the logbook loan, try to look for another source of income to boost your revenue. For example, you can opt to work online for a few hours after work for additional revenue to ensure that all the expenses are met. You can also try a hand in small home business that does not require a lot of capital. You can also take your wife to a short baking course, buy the right baking machinery, open a website, and start supplying cakes to clients.

Stay in touch with the logbook company

Many lending institutions want always to know that you are available for clarifications and repayment. Your logbook loan company also wants to feel part of you. In fact, they want your positive story to build on their repute. Therefore, keep talking to the company and notify it well in advance if you feel that the payment will be late with a few days.

Important factors you should know about logbook loans

Logbook loans are fast becoming the loan option of choice for those of us who suffer from a bad credit rating but still own a car. Unfortunately, in today’s economic climate many people are falling deeper and deeper into debt. This means they often default on their debt which in turn drops their credit rating significantly.

And if you are in that situation, if you need a credit product of some form, be it a loan or perhaps even a mobile phone on a contract basis, you simply will not be approved. But there is hope for those suffering from bad credit and one of those solutions is a logbook loan.

In this blog, we will be looking at a few important things you should know about logbook loans so you can know what to expect when you apply for one for the first time. Having the knowledge beforehand takes the stress out of your application and makes things so much simpler. Let’s take a closer look.

How does approval for a logbook loan work

When you apply for a logbook loan you will need to provide a number of documents as part of your application. This has been discussed in greater detail on this site so we won’t go into it too much here. The great thing about these loans is that approval is quick and simple. Once you have applied (usually online), handed over the necessary documents and had your car assessed for its overall condition, you will know whether you have been granted a loan in as little as two hours.

Approval is done quickly as there are no credit checks necessary. The loan provider just needs to do some calculations as to the loan amount, repayment amount and a few other details based on the value of your vehicle as well as your monthly income.


 

 

How much can be borrowed?

This often differs from loan provider to loan provider but in general, the amount that can be borrowed is from 500 pounds to 50 000 pounds. Remember this is totally at the discretion of the loan provider and is based on the value of your car as well as your income and the amount of money you are able to pay back each month. The lender has your best interests at heart and it is important that you do not overcommit yourself, otherwise, if you miss payments, you may lose your vehicle.

Must the applicant be employed?

Yes! You must have a monthly income otherwise how will you be able to pay back the loan. It doesn’t matter that it is not a permanent job (for instance, you may be a waiter) but the fact that you earn money is crucial.

Repayment periods

This is something that you will discuss with the lender. Bear in mind the longer the terms, the less you will pay each month but the more interest you will have to pay. Choose a term that works for you. Also be sure to check if there are any prepayment penalties. Some lenders do charge if you pay your loan back before the agreed term amount.

 
 

Repossession

Make sure you know exactly how repossession works should you default on your loan. Some providers will take the car after just one missed payment. We believe that the borrower should be given every chance of making up for any missed payment before a car is repossessed to cover our costs.

So there you have it, a few important points to be aware of when taking out your first logbook loan.