More People are Turning to Bad Credit Loans due to the Credit Crunch
Logbook UK , a UK logbook loans directory has seen a rise in the number of applicants looking to secure bad credit loan against their cars.
London, UK (PRWEB) April 21, 2009 -- Logbook UK , a UK logbook loans directory has seen a rise in the number of applicants looking to secure bad credit loan against their cars.
Logbook loans are usually taken out by people who are looking to secure a cash loan against their car, usually worth only few hundred pounds. But recent figures show that this is no longer the case. More and more applications are coming through from people trying to secure loans against much higher value cars. This suggests that the credit crunch is having a significant effect on people who were falling into a different credit bracket and would not consider taking out a 'bad credit loan' or a loan against their car before, are now turning to these loans as an option.
Most people who may have heard about bad credit loans already are more aware of payday loans than logbook loans. Both are pretty much the first stop, after being turned down from a bank, but not many people have a good understanding of how these loans compare with each other.
Payday Loans are a great short term solution for anyone needing a fast cash advance before their payday. But even that may not provide the best solution in a money crisis. Firstly not everyone can meet the initial criteria for a payday loan even though most payday lenders do not require a credit check.
An applicant must first prove that they are:
- Over 18 years old
- In full-time or part-time work
- In the same job over 1 year or longer
- Employed and take home more than £750 per month
- A UK resident
- And have a UK debit card
Some clients may have had problems repaying a previous payday loan, i.e. did not repay the loan on agreed date, and so he or she will be refused when they apply for a second time.
Logbook UK offers an alternative to payday loans.
A logbook loan is secured against the value of a vehicle using its log book. This could be a car, van, motorbike or caravan or anything which has a logbook or V5C document, although cars are usually the easiest and most common. If a loan applicant owns a car then he/she may prefer a log book loan to payday loan anyway as the APR or interest rates are generally a lot lower and repayment period is much more flexible, meaning that an entire loan amount does not have to be paid in full on their next payday. A logbook loan is also useful if more than £300 is required and needs to be paid out on the same day in cash. It means there is no need to wait for the cash to clear in a bank account, which with payday loan could take a couple of days.
Apply Now For Your Logbook Loan
Both payday loans and logbook loans are fast same day loans for people with money problems or bad credit. Logbook loans generally have standard interest rate of 10% per month in comparison to around 25% per month with payday loans. Repayments on logbook loans are also more flexible; they can be spread over period that suits clients. In contrast the whole payday loan must be repaid on their next payday. Generally the loan amount is much greater with logbook loans too, often up to 75% of the value of a car, which can be even as much as £50,000. Another advantage of logbook loans is the fact that clients still get to use their own car during the loan period.
Payday Loan Summary
- Full repayment on next payday
- Standard interest rate around 25% per month
- Usual APR around 2000%
- Borrow up to £750
- Can take up to 2 days to clear
Logbook Loan Summary
- Flexible repayments
- Standard interest rate around 10% per month
- Usual APR around 200%
- Iinstant, same day cash
For more information on logbook lenders throughout the UK visit:
LogbookUK
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