When seeking out the best quick credit options available you will be surprised at the number of financial products available to cater for this market.
In recent years as people become busier and busier the demand for getting credit quickly has increased. Regular bank loans can often take a number of days to approve and for some people this is too long – especially if they have bills or other emergency payments to make.
There are a vast range of various types of loans and borrowing options available to those who wish to seek a loan quickly including credit cards, payday loans, logbook loans and more. These options have their various benefits and drawbacks.
Many people borrow on credit cards but if you have used a credit card before you will be well aware of how easy it is for the lending to get out of control. Once this occurs, paying back the interest and principal of the credit card can take a long time and failure to pay back on time could damage your credit rating. Another thing to remember about credit cards is that by paying back the minimum only, it will take you a very long time to become debt free.
Most likely, you will also be aware of payday loans. These are loans which are designed to help people out until they get paid. When the individual is paid by their employer the payday loan company will receive a cheque providing the funds to them. Typically, these loans are for a small to medium sized amount of cash, borrowed at a high APR rate for a short period time. The popularity of these loans has exploded over the past few years with many lenders flooding the market.
An alternative option from the above mentioned choices are logbook loans. These loans work by facilitating the exchange of a loan for your vehicle. The logbook loan lender will technically take ownership of your vehicle for the duration of the loan in order to provide you with the funds. While this may sound concerning, the lender will not actually retain the vehicle – you will still be able to continue driving and using it as before. The most popular way to obtain this loan is by making an applicaton online.
When you have a logbook loan on your vehicle the lender will expect you to make repayments at the rate agreed during the application process for the loan. The amount of money you can borrow with a logbook loan will depend on your vehicle, its age and the mileage. Of course, a newer vehicle which is worth more will be eligible for a higher value loan whilst a lower value vehicle will be suitable for a loan of a lower amount.
During the logbook loan application process the lender will request from you some information about your car so that they can calculate the approximate value your loan. Remember that making an application is super easy – it simply requires an internet form to be filled out and submitted to the lender. Once they receive this they can then provide you with further information about what they can offer you.
Logbook loans have come under some scrutiny over the past few years as these types of loans are based on the bill of sale act. They are loans of the last resort. This means that if you do not keep up repayments for the loan, the lender can technically repossess your vehicle. The lender will be interested to know prior to accepting you for the loan about your ability to keep up repayments and they may ask for evidence of pay slips. Of course, no lender wants to be stuck in the situation of having to repossess a vehicle as it is both in the interests of the borrower and lender to have the loan repaid quickly and effectively.
The Consumer Credit Trade Association has also this year introduced a voluntary code of practice for the logbook loan sector which encourages companies to follow rules set out.
The purpose of this code of practice is to provide consumers with more confidence around logbook loans and to ensure lenders are fair to customers.