If banks deny you a loan because of bad credit, one great option that will never fail is a logbook loan. The lenders give you an easy and reliable method of getting all the cash you want to address the issue at hand. However, the rising number of logbook lenders in the United Kingdom has made it an uphill task for borrowers because many operate with different rules and conditions. This post outlines four steps on how to identify a good logbook loans company.
The best logbook lender should be licensed as a broker under the UK Bill of Sale Act. By dealing with a legitimate company, you are sure that the standards and conditions of services will be of high quality. Have a look at the license of the lender either on the company’s website or by visiting their offices. You might also want to confirm with the licensing authority to establish whether the lender has received any complaints or negative feedback. If past users have had a lot of complaints, you might need to consider a different lender altogether.
Check the interest rates of the logbook loan
The best lender should have affordable interest rates. Though the interest is usually very high compared to what is offered by commercial banks, compare what different firms are charging. Because the standard term for logbook loans in the UK is 58 weeks, make sure to compare the annual percentage rate (APR) because it can be very high at times. The secret is ensuring that you repay the money as soon as possible. APR is calculated by a factor of interest, method of repayment, frequency, amount, and length of repayment. Make sure to pick the logbook loan firm with the lowest interest rates.
Ease of getting the loan
If you want urgent cash, the best lender should have easily accessible quotes and assess your car promptly to release funds. Today, there are lenders who can give you cash within 24 hours of application. However, you need to carefully review the terms and conditions of such lenders especially the interest rates and repayment conditions.
Review the experience of past clients
Good logbook loans provider in the UK are built on the platform of best practices. They go to great lengths in offering better services and driving customer satisfaction. However, you can only tell this by meeting past clients. Check different companies’ websites to meet with past clients and read through their reviews or testimonials. If the reports are negative and there are no signs of improvement, the chances are that you will also have a similar story. However, if past users give very positive feedback; do not hesitate to take a loan from such a lender.
Conclusion
Logbook loans provide a good option to people who cannot access conventional loans from banks. They are easy to get and do not have credit history checks like banks usually do. To get the best offer, it is prudent to find a lender using the outlined four main points. Besides, make sure to repay the loan back as soon as possible to avoid interest hikes that can harm your credit score even more. For even more information about this loan product, visit Eaffy Logbook Loans.
