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Logbook loans on vehicles with outstanding finance

Finances are becoming harder to predict, and with the shaken economy, you may need some funds and fast. There are a couple of options; you could go for personal loans or even cash advances. But there’s one problem, they’re a lot more expensive and have higher interest rates. Logbook loans are also another option. They are not as expensive. Additionally, a logbook loan can also work for you when the car has got additional finances on it.

Finances on cars

When applying for a logbook loan with us, there are a number of things that we check. For starters, we’ll need evidence that the vehicle is yours so you’ll have to provide the necessary documents to prove that. In addition, we’ll also check if the vehicle has got some outstanding finances on it. This is to verify that no other parties are interested in the car.

If for some reason you’ve got an outstanding balance on the car, don’t worry. We can settle the balance for you as you take your loan with us. Our finance department will take you through the process, and we strive to make it as seamless as possible.

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What is the outstanding balance is too high?

Not all finances can be settled for you. In some cases, the debt is too huge, and you’ll need to contact our experts for more information. If, for instance, you purchased your vehicle through your local dealership, then you’ll have to settle your finances first before getting a loan with us.

Can I use my car as part exchange when on loan?

Once you take a logbook loan, the vehicle is typically the lenders till you complete the payment of the loan. However, this doesn’t mean that you can’t exchange the vehicle for another. The thing is, you’ll still have to settle the deposit. The dealer may also choose to settle it.

How we can help

The good thing is, we’re here to help. All you have to do is click here, apply for the loan and we will do our best to serve you. Our experts will guide you on any documentation that is needed, and you’ll get your loan within a few hours after your application process.

Happy blonde babe is given keys to car

Remember, these loans can be used to rebuild your credit rating so try and make early and full payments towards at each agreed period.

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Money advice | Secured vs unsecured loans explained

Sometimes, finances can really choke you without warning. That’s why loans exist. They assist you in managing your situation and give you enough time to slowly pay the money back. There are two interesting kinds of loans; secured and unsecured. Banks and other institutions prefer lending you money knowing that it’s backed up by some form of asset. These kinds of loans make a cheap way of borrowing very large amounts of money. This is what’s referred to as a secured loan.

Unsecured loans, on the other hand, are available to anyone with a fair credit score. For a better picture, here are some of the major pros and cons of these two types of loans.

What are secured loans?

Secured loans are loans borrowed against an asset. That is, failure to pay back the loan in time gives the lender a right to gain possession of the asset. In most cases, the security against your loan is your own property.

That’s what makes these kinds of loans a bit limiting. You need to have your own property before you can be eligible for them. However, these loans can give you the ability of borrowing huge amounts of up to £125,000.

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What are unsecured loans?

Unsecured loans are less complicated. You don’t have to risk your house or anything. You can borrow money from a lending institution and then agree to pay the amounts on an agreed monthly or even weekly period. Since there’s more risk to the lender, these loans have a much higher interest rates as compared to secured loans.

So what are the consequences of failing to pay? Well, that depends on our lender. You may incur additional charges and considerably damage your credit score. The lender may even go a step further and charge you in court, perhaps to gain claim over your home.

 

Merits and demerits of secured loans

Pros

With secured loans, you’ll have one major advantage; borrowing a huge amount of money. This is the kind of loan you go for when you want to start a huge business that needs immense capital. As mentioned, you could even borrow up to £125,000 at a fairly low interest rate.

Secured loans are also a lot easier to qualify for when you’ve got a tainted credit score. This is simply because you’ll be going your property as security so your credit score doesn’t count as much.

 

Cons

Apart from the obvious risk of losing your home, secured loans may also have variable interest rates. That may mean that you may be charged greater interest rates.

Secured loans may also have a lot more charges than the interest rates. They come with very expensive arrangement fees and multiple other charges such as early repayment penalties. So read the fine print and include all these costs when planning your loan repayment.

Merits and demerits of unsecured loans

Pros

Unsecured loans are a bit less formal, so you’ll have the flexibility of choosing the length to repay them.

You may also be in a position to score some fantastic deals with these types of loans. For instance, some lenders may give you a payment holiday of say two or three months during which you don’t have to pay a cent.

Cons

You’ll generally pay more interest for these kinds of loans. If you’re looking for a short term loan, then the interest rates rise even higher.

Top deals are only open if you’ve got a high credit rating, and are pretty hard to get. So this kind of loan may not suit you if your credit score is low. You may be forced to pay much higher interest rates.

But remember, lenders are increasing each coming dawn, and the best way to score a loan is by doing your research. A number of companies offer comparison services to assist you to find the best deal.

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