When you don’t have good credit to back you up or simply do not have the time to undergo stringent credit checks, it’s very easy to swipe your plastic cards for a cash advance. However, this habit is actually one of the top reasons people fall into bad debt situation, as the interest rates with credit card advance are extremely high.
If you need cash real quick, an option to consider is a logbook loan.
What are Logbook Loans?
A logbook loan is a loan secured against an individual’s vehicle. They have become a very popular option for those with bad credit rating because of the easy availability of these loans. Aside from having no credit checks, the cash loaned is usually released within the same day of application.
What are the Benefits of Logbook Loans?
No credit checks – logbook loans require no credit checks, so they’re perfect for those with little to no credit history. Even if you have negative records such as debt managements or bankruptcy, you can still apply.
Convenient – logbook loans typically involve online application only and require very few documents, so you can have the money that you need without ever having to leave your place.
Quick cash loan – because there are very few requirements needed, the application process is very quick and easy. You can actually apply now and get the money today without any hassle.
Higher borrowing limit – the amount you are allowed to borrow is usually up to 50% of your vehicle’s value. So if you have quite a valuable vehicle, you can borrow more.
You can still use the car – Unlike pawning your valuable items where you actually have to surrender the item secured, with a logbook loan you can continue driving your vehicle even while the loan is still in force.
Affordable and flexible payment schemes – While logbook loan rates may seem very expensive initially, it actually makes sense to borrow at higher rates with monthly affordable payments than borrow at a lower rate and be forced to repay the full loan amount the following month. For many people, it’s just undoable, which makes borrowing even more expensive as you keep on missing your payments.
Borrowing against your credit card’s limit is not only expensive, but it can also bring your credit score further as you raise your credit utilisation. The next time you need quick cash, consider logbook loans before rushing to the nearby ATM.