Let’s face it, taking out a loan from a bank is becoming increasingly difficult and it’s only those with the best credit scores who are able to get loans without much trouble. This is one of the main reasons why the majority of people are now turning towards alternative lending options such as pawnbrokers, payday loans, and logbook loans.
According to Citizens Advice, the amount of logbook loans that have been taken out year-on-year has increased by approximately 60% since the year of 2011. Throughout the next few sections we’re going to discuss the important factors that have resulted in this increase.
More Likely to Be Accepted
When you apply for a logbook loan—compared to a traditional bank loan—you are much more likely to be accepted. This is especially true for those of us who don’t have the best credit score.
You only have a few options to choose from if you have a poor or nonexistent credit score, and traditional lending definitely isn’t one of those options. A logbook loan will provide you with easy access to funds whilst your vehicle is used as security.
Whether you need money to carry out home renovations, pay an emergency bill, pay a fine such as a speeding ticket, or for any other reason, you can rest assured that a logbook loan will take care of you.
Larger Amounts of Money Can Be Borrowed
Even if you have a decent credit score, you might not be able to lend as much money as you need from the bank. Alternative lending options such as going to a pawnbroker or a payday loan company aren’t always suitable because you usually can’t get as much as you need either.
On the other hand, a logbook loan company is more likely to lend larger amounts of money to you because you have a significant asset as security. Keep in mind that the amount you can borrow will largely depend on the value of your vehicle.
Not only will you be able to lend larger amounts of money, but you’ll also find that the interest rate (APR) with logbook loans is much lower compared to other alternative lending options. This is simply because your vehicle is going to act as security, so the lender is taking a much smaller risk.
Fast Access to Money
Just like many other alternative lending options, logbook loans allow you fast access to your money—at least, much faster access compared to banks. You can expect to wait at least a week or two before receiving money from your bank, but with a logbook loan your waiting time can be reduced to as little as 24 hours!
This makes logbook loans ideal for those people who are in desperate need of funds, perhaps they have an emergency bill to pay, or need to have an emergency repair carried out on their home.
There are many advantages to logbook loans and it’s easy to see why they are becoming so popular amongst the public who are thinking about borrowing. Traditional lending options such as bank loans are becoming increasingly difficult to obtain, which has resulted in many people taking out a logbook loan.