You are looking for a loan, but as you are having a bad credit history all the traditional loans are no possibility for you? Then a logbook loan would maybe a good solution.
You may have heard about the payday loans. This loan is very similar to them, but as it is secured you can lend higher amounts of money. The logbook loan isn’t secured against your house, but against your car. Usually the loan is in the region around £500 to £50,000 but it depends on the value of your car, too.
It is very easy and fast to obtain because there are no credit checks needed. You just have to apply at one lender online and it is very likely that you will receive the money within 24 hours. Of course you can keep your car during your payback period but when you default on any payments then you risk losing your vehicle.
But be careful when you decide for Logbook loans. The APR rates are often very high, so it shouldn’t be a long-term solution for you debts. It is important that you are able to pay the loan back as fast as possible. However, a logbook loan is often the better solution for you as it has lover interest rates than payday loans.
If a logbook loan seems to be the best solution for you, make sure you have compared all the different offers on the internet for interest rates, repayment periods and loan amount.
It isn’t easy to get a loan these days. Ever since the financial crisis the banks have been extremely strict about who they lend to and if you don’t have a good credit rating it is unlikely that you will be able to obtain a loan from a bank. This means that you need to look elsewhere. Bad credit loans are available but they are usually provided by independent lenders rather than banks. Even if you have a poor credit history bad credit loans are likely to be available to you. With a bad credit loan you might be able to borrow up to £100,000 depending upon your circumstances. Large sums of money are only likely to be available if you obtain a secured bad credit loan. This means that you will have to provide an asset such as your home if you are a homeowner as collateral for the security of the loan. If you want a loan which is unsecured i.e. you are not offering any physical asset for the security of the loan then the loan is likely to be more expensive and you will not be able to borrow for such a long period of time.
It is worth remembering that when you borrow money there is always an element of risk involved. This is usually the case when investing in any financial product. However, if you decide to get a secured bad credit loan then the risk is increased because whatever asset which you are using to secure your loan is at stake. If you are using your home for the security of the bad credit loan then there is a high risk involved. If you cannot for some reason make the repayments on your loan you could potentially lose your home. In the same way if you are using your car or jewellery to secure your loan you could lose that if payments are not made.
Before you decide that a bad credit loan is the one for you make sure that you investigate the situation thoroughly. A loan should not be taken lightly and there are so many on the market that it could well be worth looking around to find the cheapest deal. You may find that your credit rating was not as bad as you thought and you might be able to get a more mainstream loan with lower interest. However, if you know that a bad credit loan is for you it is also important to try and get the best deal. First of all, work out exactly how much money you need to borrow.
Keep this amount to a minimum as the more you borrow the more interest you will have to pay and the more money you will have to pay back. When you have done this browse through companies online which offer bad credit loans look at the different charges and fees which are included with these loans (these are often found in the terms and conditions). Then look at the APR and try to work out which company is offering the lowest rate. The interest rate advertised is usually shown as the Representative APR and this means that it is the rate around 51% of customers receive. The actual rate may vary. With this amount work out how much money you will have to pay back over what period of time. Make sure you can afford it. If you have any doubt about being able to make loan repayments on time then take more time to think. A loan you cannot pay back can be crippling financially and could destroy your credit rating as well as making you lose your home.
It is also to be aware that not all of the companies which you see advertising bad credit loans on the internet are necessarily bad credit loan lenders. There are also likely to be a lot of brokers who will offer a certain rate of interest but it will not be provided by them. Bad credit loan brokers work with a panel of lenders to try and find you the best loan to suit your circumstances. This might be useful if you are having trouble finding a loan but a lot of these companies do charge a fee for their services which might be more expensive than what you have in mind. When you have chosen the bad credit loan you want make sure that you have read all of the terms and conditions in the small print thoroughly. Hidden fees and charges will always be included in the small print so it is worth checking this out to avoid any unexpected surprises.
If you cannot get a bad credit loan then there are other loans for people with bad credit available. These include payday loans which are unsecured small loans of up to £1000 which can be usually borrowed for a period of one month. There are also logbook loans which are essentially bad credit loans which use your car as collateral for the security of the loan. With these you can generally borrow up to 70% of the value of your car providing the car is less than ten years old. There are also guarantor loans which are basically bad credit loans where somebody else will take responsibility for the loan in the case that you cannot pay it back. All loans are serious financial products and as such should be treated with great care.
The main advantage of unsecured loans is that you don’t have to fear of losing an asset if you fail paying back the loan on time. The lender has in this case no guarantee that you will pay back the loan back on time; they will first perform a credit check to see how reliable you are.
However, there are still some lenders who accept people with a bad credit rating but these offers usually have bad interest rates.
There are many unsecured loans on the market but it is worth checking the various offers carefully before making one’s choice. To get a good deal, you have to work out how much money you need and in what period of time you can pay it back. The less you borrow and the less time you need for repaying it, the cheaper the loan will be. Furthermore your credit rating has influence on the interest rates. If you have a perfect credit rating, you will find many lenders which are willing to offer you cheap rates.
Of course, before you apply for a loan you have to make sure that you can afford it. If you won’t be able to pay the repayments back on time, you risk damaging your credit rating.
It really isn’t easy to borrow money these days, especially if you have a poor credit rating. However, if your bank or building society won’t lend you money there are still other options available to you. Bad credit loans which are available to people whose credit history is less than perfect are usually secured loans. This means that the money you borrow will be secured through your provision of an asset as collateral for the security of the loan. There are also unsecured bad credit loans in Australia available but they can be very expensive as the interest can be very high. With secured bad credit loans you are likely to be able to borrow more money at a lower interest rate in comparison to unsecured bad credit loans.
If you are looking for loans for people with bad credit then it is worth taking your time to make sure that you find the bad credit loan which best suits your financial circumstances. These loans can vary greatly and it is worth making sure that you find the cheapest deal. Compare the different interest rates of different lenders and work out who will charge you the lowest level of interest for the amount of money which you want to borrow. Although some companies will charge less interest if you borrow more money it is worth keeping your borrowing to a minimum as ultimately there will be less to pay back. Always read the terms and conditions of bad credit loans carefully to make sure that you understand the process.
A Few Simple Steps Can Save You Money On Your Loan
If you are looking for loans for people with bad credit then there are options available. You are most likely to find a variety of lenders and brokers online who will offer you bad credit loans. A broker might be useful if you are having trouble finding a company which will lend to you. However, brokers are probably best used as a last resort and many of them charge a finder’s fee and it is likely to end up being more expensive in comparison to borrowing through a lender. It is really important for you to shop around for bad credit loans if you want to keep costs down. Compare the different levels of interest offered by any company you would consider borrowing from. Read all of the terms and conditions of the lender carefully. The bad credit loans industry is notorious for unscrupulous dealings and it is worth making sure that your lender is reputable.
The first item to check when you are taking out a loan is the representative APR. This shows what the APR and costs will be for around 51% of people following the advertisement. Make sure that there are no hidden costs or charges such as a finder’s fee; this particularly applies if you are using a loan broker who can often have hidden fees which you won’t be aware of until you are charged. Please make sure that any loan repayments are made on time as otherwise you risk getting fined which will cost you more money for late payments. If the bad credit loan you are borrowing is secure then you risk losing your home if payments cannot be made. Please read all terms and conditions carefully.
If you have a poor credit history and you need to borrow money you could well be having difficulty. This is because the usual financial institutions are generally not keen on lending to people with bad credit. However, there are other lending establishments who can lend you money but their rates might be more expensive that those of the banks. Remember bad credit loans are available but they are likely to be secured which means that you will have to off an asset such as your home for the security of the loan. Not all bad credit loans are secured and if you are looking for an unsecured bad credit loan they are available but you are unlikely to be able to borrow as much money and it is likely that the interest rate will be very high.
Take your time to work out what sort of loan is best for you. Remember that secured bad credit loans do carry risk and if payments are not made on time then you potentially risk losing your home which you used to secure the loan. If you can find an alternative means of borrowing such as through family and friends then this is likely to be a better option as the loan will be less expensive and you will be indebted to people you know rather than an independent lender. Before taking out any sort of loan please make sure that you read the terms and conditions carefully so that you understand exactly what you are getting yourself into.
If you need to borrow money and are shopping around for the perfect loan, it is of paramount importance that you find the right loan suitable for you otherwise you could find yourself in worse debt. Before you apply for a secured or unsecured loan there are several factors that you should think about before you commit to a loan provider.
How much and the duration of the loan are questions that you need to ask yourself before you take out a loan. Spreading the repayment of your loan over a longer period of time can lower your APR and reduce your monthly payments making your loan more affordable in the short term. However, bear in mind you will be committed to repaying the loan for a longer period of time and ultimately will end up paying more in interest. It is always worth pushing yourself to pay the loan back in the shortest time possible to avoid repaying more than necessary.