Thursday, 10 April 2014

Is a Logbook Loan the Best Short Term Loan Option?

If you are thinking about taking out a short term loan it is probably a good idea to look at logbook loans as one of the options.  They are quick and easy to arrange and if you work them out right can be quite cost effective.

They aren’t cost effective if you keep the loan for a long period of time because the interest rates add up, so you pay back a lot more than you borrowed in the first place.  That isn’t always particularly ideal for some people.

Of course when you take out a logbook loan you need to have a car to use as security for the loan.  Without a car you aren’t going to be able to raise any money because you need to hand over your V5 document to the lender in order to take out the loan.

What other options are there?

One of the cheapest ways to borrow is to use 0% finance credit cards.  There are good deals out there that offer up to 2 years interest free credit.  If you pay off large chunks of the debt in this time it is a very cost effective way of borrowing.

Of course if you don’t have a strong credit record then it may be difficult to be accepted for a credit card.  Again that’s why logbook loans are so popular, you don’t have to go through a credit check and other criteria are used by lenders to make a decision on whether to loan to you or not.

if you own a property you may be able to secure a loan against that property, but again as with logbook loans you need to be careful because you are putting an asset you own up for security.  If you default on payments you could face losing that asset and if it is your home or car that may cause you serious problems in the long term.

Always speak to a debt advisor if you are thinking about taking out a loan to consolidate debts.  Citizens Advice are the best people to speak to in the UK.

It is advised not to consolidate debts with high interest loans, you could get into debt problems that can spin out of control.  An advisor will be able to set you in the best direction if you are having difficulty.

Friday, 28 February 2014

Tips For First Time Logbook Loan Applicants

You may be someone who is earning a stable income and are confident that you can meet monthly payments, perhaps one of your joys is to go shopping for your first vehicle. Maybe you are a first time buyer who has limited knowledge, insufficient funds and/or no credit history at all. Here are a few tips to consider before jumping into the loan jungle!

Read The Small Print!
It would be wise to familiarise yourself with some common terminologies that you may encounter, for instance interest rates, down payments and others that you might find in the logbook loans industry.

How Much Payment Can You Really Afford?

Before you determine how much money you can afford a month, remember to put aside some money in case of emergency's, for example car repairs or birthdays. You may find that some lenders may offer you a low or no down payment in order to attract borrowers. Don't be fooled as they typically have higher monthly payments and borrowers will end up paying more in the long run. In order to save yourself as much money as you can over time try and put as much money aside as you can in order to decrease the amount of money you need to borrow.

Lower payments for longer terms sound appealing, but potentially could cost you more in the long run. With most short term loans it could also be dangerous to be tied down for such a long time as it could take you a while to get back to your normal financial routine. Before considering refinancing remember there is usually a price to pay.

For example refinancing for a shorter loan. You may aim to save money during the course of your loan. With the bonus of becoming loan free as soon as possible, which could resume to you going back to your usual budget before you took out the loan. Sometimes having a shorter loan means higher monthly payments. You may find yourself watching your expenditure, sticking to a budget and making sure your payments get paid on time. It would be advisable to only finance a shorter loan providing you have a stable source of income in order to meet your repayments.

For more information about logbook loans have a look at this video

The Importance Of Loans

Do you need a loan to get you out of a financial disaster? Maybe you have not been well enough to go to work and need to pay for your medication or your car has broken down and needs some major work completed on it.

At some point in life you may encounter an emergency and need a large sum of money and may be unable to ask a family member or friend.

There are many loans available for your every need, it may be a car loan, a mortgage, a student loan or maybe you want to build your credit history and are considering a credit card.

Most individuals dream to own their own home one day, it can be rare for anyone to have the full cash to buy their own place, in which case you will probably look into applying for a loan in order to have the funds to buy the property. You would need to review your income and outgoings every month and make sure you are in the position to pay back your loan.

Student Loans are intended to work hard and pay later. These types of loans are very popular for students who want to receive a higher education and cant afford day to day expenses.

Do you need a loan to get you out of an financial disaster? Maybe you have not been well enough to work and need to pay for medication, or your car has broken down and needs some major work done to it. This is one of the benefits of a short term loan as they are here to help you until pay day.

Most people dream to own their own home one day and it can be difficult for anyone to have the full cash to buy. You might consider applying for a loan in order to have the funds to buy the property. You need to review your income and outgoings every month and make sure you are in the position to pay back your loan.

Are you wanting to apply for a student loan? Work hard and pay later is a good option. These types of loans are very popular with students. Whether it's to expand your existing business or you want to start up your own business a loan could be very beneficial. This way you can watch your business grow and not have to wait for your businesses own income to finance the needed costs.

You may also want to take out a loan in order to build your credit. Maybe consider taking out a small personal loan and payback on time every month so you can have something positive to show on your credit profile.

Whether you want to expand your existing business or you want to start up your own business a loan could be very beneficial. New business usually need a lot of money and if you don't have the money it can make it difficult to pursue. Business loans can help you to start and quickly establish your new business on the market. This way you can watch your business grow and not have to wait for your businesses own income to finance the needed costs.

You may also want to take out a loan in order to build your credit. Maybe consider taking out a small personal loan and pay it back on time every month so you can have something positive to show on your credit profile.

There are many loans available which are easy to apply for too. Before choosing which one is best for you make sure to read the company's policy's and see which best suits your needs.

As there is a lot of competition out there, lenders are trying to attract people with different schemes which in return is good for each individual.

Things To Consider Before Applying For A Credit Card?

Are you looking for a credit card that has better terms and conditions than your previous card? Maybe you want to look for better terms and conditions than what you have already have. You may see a credit card that attracts you with its lower interest rates, better perks and no annual fees.

You should do your homework as there are so many cards available, choose a card that matches your spending habits.

Are you someone who pays your credit card balance off every month? If you answered yes then you would benefit from a card that has no annual fees. Or are you someone who always leaves balances on your card? Then your priority would be a credit card with low interest rates.

It can be tempting to apply for a new credit card when the issuer is sending you constant offers. It would definitely be worth doing your homework as it may not be the best card for you. Before you apply for the credit card make sure to compare it with others of its kind. There are many websites that have or will compare these cards at a touch of a button and where you will also be able to search for reviews from other customers.

In order to make credit cards more appealing they tend to offer lower interest rates at the introductory period. However if you don't know how it works, your introductory period will expire and you will begin paying for regular APR's. Before signing on the dotted line make sure to inquire about how long the introductory period should last and what the regular APR is.

You should also ask the provider if your credit card is protected against card fraud. Ask how your issuer handles unauthorised credit card use. You may need to state the amount you have to pay in, it would be wise to ask your issuer if they monitor your usage and shut down your card when it raises suspicions of locations and usage.

Some issuers may use your transactions against you. They may asses your credit worthiness by reviewing your purchase records which may effect your credit limit or APR. If you feel this is an invasion of privacy you will need to inquire with your issuer if they follow this.

You should find out in advance what will happen if you fall behind on your payments, Will you loose points or benefits or will you have extremely high penalty fees? Ask at what point they send your account to a collection agency, or when is the account considered charged off.

Tuesday, 25 February 2014

Loans For Those With Bad Credit History

Credit Card Cash Advance

When cash is needed fast, one of the quickest ways to raise instant cash would be to go and visit your closest ATM and swipe your card and withdraw your funds against your credit card limits or pop into your bank and ask for a credit card advance.

If you are considering making an unusual transaction, check with your credit card provider to see how it will be treated. Credit card advances can work out to be one of the most expensive things you could do. Only withdraw cash from your card as a last resort. There are other payments that you can make on a credit card that will also be considered a cash advance they are:

>Making transfers such as transferring money from your credit card into your current account in order to        make sure you can pay a bill.
>Buying travellers cheques
>Buying foreign money
>Betting and Gambling transactions

Here are a few reasons why credit card advances can be expensive:

>  You will attract more charges on top of its own higher interest rates when withdrawing cash from your credit card.
> When making a cash withdrawl from your credit card you will not receive purchase protection, where if you are paying directly using your card you will benefit from enhanced protection if the goods don't meet your standards or aren't delivered.
> If you are going abroad the local bank that operates the cash machine may charge you for using their cash machine.


Some people would say this would be the best way to get quick cash as you are not obliged to pay the loan back. It is up to each individual if you want to retrieve your possession or consider it sold.

If you did want to buy back your possession from the pawnbrokers do bear in mind that you will probably be paying back more than it was originally pawned for. Pawnbrokers have also started accepting designer handbags and shoe's. You could trade pretty much anything you wanted to, which had some value to it. From fine wines and art to rare books and antiques. Here is an interesting Article on James Constantinou who talks about a range of unusual things are being offered by customers at his local pawnbrokers. I have also added some pawnbroking facts that I found interesting:

> The pawnbroking industry has grown by 8% over the past 12 months.
> There are around 2,144 pawnbrokers operating in the UK estimated at a staggering £865m.
> You will never be bothered by debt collectors.
> Pawnbroking will never effect your credit rating as no credit checks are required.
> No need for a bank signer or co-signer.
> More than half of the pawnbrokers say that the recession has increased pawn loans, but significantly hurt sales.
> Less than 0.2% pawn shop transactions involve property.


The Difference Between Logbook Loans and Payday Loans

The difference between Logbook Loans and Payday Loans?

There are many opportunity's nowadays to apply for short term loans if you are strapped for cash. If the bank have refused you a loan and you have a bad credit history, you may be looking for alternative lenders who will lend to those who have credit problems, in the form of short term loans. Two of the most popular loans are Logbook Loans and Payday Loans.

Providing you are sensible and are not reckless there are loans out there that will help you. I have written a bit about the differences of Logbook Loans and Payday loan's, remember neither of these may be right for you or they could be exactly what you need, just make sure to do your research before you accept. 

Logbook loans are a secured loan. When you accept to take out a logbook loan an agent will ask you to sign a 'bill of sale' where the lenders will take the logbook/V5 and keep hold of this until you have paid back your loan in full. They will then safely return the document to you at the end of the loan period.

You will be able to keep your vehicle providing you stick to the terms and conditions of the agreement. If you fail to keep up with the payments, the documentation you exchanged at the bill of sale will give the lender permission to reposes your vehicle. In order to qualify for a logbook loan you will need to be, over 18 years old, be a UK resident, have a vehicle which is no older then 10 years old unless it is a classic and has some value to it, and you will need to show you have a regular income.  Those who are self employed can also apply.

Once you have chosen a lender do check what you need in order to qualify for a logbook loan. Logbook loan lenders do not check if you have CCJ's or arrears as your vehicle is the only security needed. Providing you meet their criteria they will consider giving you a loan. 

Payday loans are unsecured and unlike the logbook loans they do check your credit history. If you have a low credit score, CCJ's or arrears then you may not be accepted for the loan. Payday loans are intended to help people so they are financially solid until pay day. As it is a short term loan, you will usually have to repay the money you have borrowed by the end of the month in question. 

The amount you can borrow differs too. Logbook loans will lend you anything from 50% up to 70% of the value of your vehicle this can range from £500.00 to £50,000.00. Logbook loan terms usually run for 18 months. Payday loans will lend you anything between £50.00 - £1000.00. You would borrow this type of loan for little emergencies for example, if you had fallen behind on your phone bill or needed minor work done to your vehicle. 

The availability of both these loans are very similar.You can receive the money into your account within hours of making your first enquiries with both loans. For a logbook loan an agent will need to come and see you to confirm the value of your vehicle. Logbook loan companies usually have agents all over the UK and Wales so there is no need to worry about where the company is based. With both loans you can apply on-line and be accepted which can be useful and convenient. 

From experience I would look into this carefully before applying for a loan.  And if you can try to pay back the loan as soon as possible it would we wise to see if the lender you have chosen has early settlement fees if you feel you are able to pay back the loan before it has run its course.