Welcome to SimViral Logbook Loans.
Logbook Loans Overview
Logbook loans are provided by logbook lenders who ask the borrower to provide security in the form of a car, van or motorcycle that they own. The borrower has to transfer ownership of the vehicle to the lender in order to secure this type of loan. It is not required to give away the vehicle though and the borrower may continue using it throughout the installment period. The document that needs to be handed over to the lender is V5C Registration Document or “logbook” and hence the name logbook loan. If the borrower fails to repay the loan, the lender has the right to sell off the vehicle to compensate for the loan amount.
Companies offering these types of loans such as Logbook Calculator make money on the interest they charge and there are no additional or hidden charges or fees involved. You are given a totally transparent approach to apply for such a loan. The terms are flexible and therefore a good number of people qualify to apply even those who have a poor credit history. In fact, these people are encouraged to apply for a logbook loan because they usually have very few options left to secure a loan. There are no penalties involved and the borrower is given a choice of weekly or monthly payment schedule so that he or she is able to make payments on time.
The good thing about a logbook loan is that you don’t need anything else other than a vehicle to be able to get it. Moreover, usually there is no restriction on the age or condition of the vehicle. Nonetheless the amount of loan is dependent on the value of your car or van and the value is calculated based on many factors including the age, make and model, condition, and other features of the vehicle. Another great thing about a logbook loan is that people with poor credit history are given preference and there are usually no additional requirements for these people than others.
Of course there are a few downsides to this type of loan just like other options. The vehicle used for securing a logbook loan is at a risk of repossession in case the borrower is unable to keep up the repayments. You will have to weigh this up before appointing your vehicle for this loan. If you can afford to lose it, only then use it as security. This security minimizes the risk involved and therefore many lenders agree to give loan to such a borrower. But this requirement may compel borrowers to look at other options of securing a loan. One of these is known as a guarantor loan explained below.
Those who need an alternative approach to secure a loan that would not require security in the form of an asset there is the option of applying for a guarantor loan. Such a loan is unsecured but it does need the guarantee of a person who agrees to pay off the loan in case the borrower fails to repay the amount within specified time period. Both logbook and guarantor loans are for people with a poor credit score. It is a way to effectively improve their credit score and get better interest rates the next time they apply for a loan. It is possible to get a free quote online by specifying your requirements and other information. This is a good way to start comparing different plans. Also, customer testimonials or reviews play a vital role in differentiating reputable and credible firms from the ones that only work to extract money from innocent borrowers.
It is possible to compare your loans from various lenders using an online platform so that you are able to find the best deal. You may wish to compare logbook loans with guarantor loans and then choose the one that best meets your requirements. Usually one thing that is compared thoroughly is the interest rate. This way you are able to estimate how much you will have to repay in total and depending on that amount you can plan and control your future expenses. It is recommended to do your homework before applying for either of these types to improve the chances of getting the lowest possible interest rate and flexible terms and conditions.