by Brian B Smith
You should carefully research your options and compare logbook loans before making a commitment. The term logbook loan may be new to you. Logbook loan is synonymous with a collateral loan or secured loan. Due to a lack of credit or due to bad credit history, some people are not able to get credit with an unsecured loan. There are payday loans where the borrower provides proof to the lender of impending payment of a salary or wage. For a fee, the lender will loan the borrower the amount of the expected pay cheque. When the borrower is paid by his employer, he must repay the loan amount plus the fee or interest charged for the transaction.
Historically a logbook referred to a ship's log which kept a written record of the distance a ship had traveled and the time it took for the travels. Over time the definition of logbook has expanded to include the vehicle registration certificate of a car that identifies its owner and history in a government data base.
Logbook is a colloquial term for a vehicle's registration certificate in the United Kingdom and in Ireland and Australia. With a logbook loan the borrower receives a cash loan from the lender, but the lender takes possession of the logbook until the loan has been repaid. The car serves as collateral for the lender. If the borrower defaults, the lender has the legal right to take possession of the car.
There are many sources for consumers to obtain a logbook loan. For this discussion lenders Mobile Money and V5 Loans will be compared. Regarding locations and branches, Mobile Money has several, more than thirty, branches in the United Kingdom. The Website states that borrowers must reside in England or Wales. V5 Loans have many branches in the UK, but also have locations in Scotland and Northern Ireland. If residency is required by V5 Loans, this is relevant information.
The interest rates charged by all logbook lenders is high. In comparing Mobile Money and V5 Loans, Mobile Money is slightly higher with 385.2 percent versus V5's 378.3 percent. The terms for duration of the loan also differ, with Mobile Money allowing a maximum of six months and V5 Loans allowing a maximum of twelve months. Consumers should keep in mind that the longer the duration of the loan, the more interest they will pay.
Logbook loans are designed to meet the needs of a consumer with a serious cash flow problem. It is a certain level of extreme need that prompts a consumer to seek this type of loan. The money is often needed due to some unexpected emergency. One can only hope the cash flow issue is short term as the borrower will need a good deal more money to repay the debt.
V5 Loans will lend up to seventy-five percent of the car's value. The competitor's Website does not clearly state the percentage value of the vehicle that it will loan. This may depend on the mileage, the condition and the age of the car. Based on the value of the vehicle, the maximum amount that both companies will loan is 25,000 pounds. There are other lenders with a higher maximum, but the interest charged is also greater.
Borrowers are attracted to logbook loans because they can get the cash immediately. The approval process is very quick and not dependent on a credit report. Compare logbook loans to make sure you are making the best choice for your situation. Logbook loan borrowers will pay significant interest but can still minimize the loan's cost by comparing various competitors. - 41115
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New Unique Article!
Title: Before Borrowing Compare Log Book Loans
Author: Brian B Smith
Email: m_niccoli@hotmail.com
Keywords: compare logbook loans,compare logbook lenders,compare loans,logbook loans,car loans,auto loans,loan reviews,loans,consumer credit,credit,finance,money,business,cars,autos
Word Count: 599
Category: Finance:Credit
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