Logbook loans may not have gained much favourable feedbacks over the years, but there are still plenty of benefits associated with the said loan. Here are just a few.
Definitely one of the key selling points of a logbook loan is its availability to borrowers with poor credit history. Anyone with a working vehicle and has a job can avail of a logbook loan, despite of what is written in their credit record.
Having no routine credit checks to go through is not just attractive to those with bad credit, but to those who are in a hurry to get their cash as well. Approval with other traditional loans usually takes days, if not weeks. If you find yourself caught up in major financial emergency and time is of the essence, a logbook loan can provide the quickest solution in less than 24 hours. In addition, because application is done mostly online, it’s very quick and convenient to apply anywhere, anytime.
Unsecured personal loans typically have much lower borrowing limits, especially if you have imperfect credit. With a logbook loan though, the lender is assured that he can get his money back no matter what. Even if your credit speaks against you, you’ll have better chances of borrowing more because the loan is secured against your vehicle, which the lender can easily recover should you default.
Unlike other loans for bad credit such as payday loans, logbook loans offer much flexible and attractive repayment terms. Unlike typical payday loans wherein you are forced to make a one-off payment in such a short time, logbook loans allow you to stretch your repayment terms to a comfortable period, and choose how much you can afford to pay. This means you’ll be better able to manage your debt payments and handle the repayments with ease.
A logbook loan does not only help with a temporary cash flow fix, but it can also help you reverse the damage that has been done to your credit. Though intended for borrowers with poor credit, it is still a type of credit, and one that should appear on your credit report. While this may not be the type of entry that lenders are hoping to see, your on-time payments will still be positive entries that could help repair your credit over time.
We all go through that one point wherein expenses seem to all come together at the same time. If you find yourself short of cash right now but can anticipate that your financial situation will be better soon, a logbook loan is not at all that bad of an option. You can address your problems right off the bat, and then you can move on with your life. Of course, be careful not to bite off more than you can chew. Always borrow only what is necessary, and choose a repayment term that you can afford.