Logbook loans

Logbook loans borrowers guide for first time borrowers

Whenever the subject of loans is broached, the understanding is that someone is in a financial quagmire and in need of urgent cash. No one is immune to financial constraints. Even the rich apply for loans for one reason or the other. While every once in a while we might be forced to apply for a loan due to financial constraints, financial literacy is the difference between getting a good or bad deal. In fact, most first time borrowers find themselves in unfamiliar territories owing to the fact that they have scanty information regarding loans.

Individuals with a poor credit rating form the bulk of people that get turned down for a loan. The reason is because most financial lenders deem those with bad credit as a risk to their business. To them, a person with a poor credit rating is bound to default and therefore poses a greater risk to the lender. Luckily, and this can be attributed to credit crunch of 2008, more and more lenders are open to accommodating bad credit individuals. In fact, there is a burgeoning number of lenders offering bad credit loans in the UK. Talking of bad credit loans, what comes to mind is logbook loans.

Since its introduction, logbook loans have taken the UK market by storm. Individuals who initially could not get access to loans as a result of their low credit score status could now get loans without worrying about credit checks. To qualify for a logbook loan, you simply need to be a legal owner of a car, a person of sound mind above the age of 18 years, a UK citizen and demonstrate proof that you receive income monthly or on a regular basis. That said, if you are a first time borrower and thinking of applying for a logbook loan from justlogbookloan.uk, it is important that you be conversant with a number of things.

First and foremost, you need to understand that applying for a logbook loan is not all about waking up one morning and approaching the first lender within your vicinity. With so many providers offering V5 loans, getting misled or making an unpopular decision is a reality. To avoid falling into this trap, endeavour to do proper background research. Read reviews, ask for references from friends, make use of comparison sites and settle for the most credible and reputable logbook loan lender.

Secondly, don’t be in a hurry to accept the deal on the table. Haggle! I understand that you might be having reservations or probably hold the opinion that haggling belongs to the market. However, you need to negotiate for the best and most competitive interest rates so as to reduce the burden.

Thirdly, once haggling is out of the way and you are in agreement with the terms of the loan, do not rush to append your signature before reading the loan terms and conditions. This is simply to ensure that what you’ve been told is what is enshrined in the terms and conditions. A number of lenders tend to include hidden charges in the fine print and therefore it pays to go through it thoroughly, ask questions if you have any and ensure that you are on the same page with your lender.

In a nutshell, make an informed decision and endeavour to repay your loan as fast as possible if you are keen on positively influencing your credit score!