Logbook Loans vs. Other Personal Loans

It used to be that borrowers with bad credit have a harder time getting approved for a personal loan. While most borrowers still struggle to get approved fast, there are now more personal loan options for people with bad credit. Logbook loans, for example, are among the most popular alternative. But there are still other options to consider before finalizing your decision. Below are some of your options when compared to logbook loans.

Logbook Loans

Logbook loans are ideal if you have bad credit but you have a vehicle that is not more than ten years old and is free of financing to serve as collateral or security. With a logbook loan, you can borrow between £500 and £50,000 at repayment terms from 3 months up to 3 years. Logbooks loans offer one of the most flexible and highest loan amounts for people with bad credit today. It makes a good option if you need large amounts of cash quickly and you can avail the more affordable traditional personal loans.

Guarantor Loans

If you don't have a car or a home to serve as collateral or security, the next best option is a guarantor loan. Unlike logbook loans, guarantor loans are not secured on any asset. Instead, you'd need to find a guarantor to cosign the debt agreement in order to be eligible. For guarantor loans, you can borrow between £1,000 and £10,000 at repayment terms from 1 to 3 years.Independent Co UK has more info about guarantor loans if you want to know more about the loan product.

Payday Loans

For a quick cash solution to your pressing financial problems like overdue bill, car repair or a medical emergency, payday loans come handy. You can borrow between £100 up to £1,000 payable within 30 days. Because it's quick and designed for people who are struggling and with bad credit, the loan type comes with a hefty interest rate. The interest rate for payday loans falls at about 1,000% on average.

Doorstep Loans

If you only need a small sum of money maybe for a car repair or an overdue bill, doorstep loans are recommended. This financial product lets you borrow between £50 up to £1,000. It is like a payday loan which charges a higher interest rate. The Representative APR on average is somewhere at 1,500% or more. Because it's a doorstep loan, the lender calls you at home and collects the repayment there therefore greater convenience on the borrower's end.