Logbook Loans as an Alternative to Guarantor Loans
Getting a loan can always seem to be a tedious process, but it doesn’t have to be. Whenever you need cash, be it an appliance break down or an unexpected bill, who do you borrow from for a fast payout?
Online guarantor loans are advertised as the easy place to go to place for quick cash, but they don’t really mention how embarrassing and stressful this can be on your personal relationships compared to a straightforward
. Each one has its own pros and cons, so you need to choose which will suit you best.
The Problem with Guarantor Loans:
On the surface online guarantor loan providers provide an attractive package, they let you borrow money with the added safety-net of having a trusted person vouch for you and use their credit rating to support your application. This means that if you fail to make payments, your guarantor will be legally obliged to pay off the remaining balance of what you borrowed, essentially acting as the lenders security.
Of course, you don’t want someone close to you to be burdened with your debts, so you try to make payments on time. But what happens if you lose your job or encounter an emergency and cannot afford to make repayments anymore?
Well, this is where a lot of good relationships with friends and family become strained. Not only do you have to face the embarrassment of not being able to pay back your own loan, but someone else who has their own responsibilities will legally have to settle your outstanding balance.
Why a Logbook Loan is a Better Alternative:
Unlike guarantor loans, getting a logbook loan is a fast and easy way to get a same day payout without a guarantor. Instead of getting into awkward conversations with friends and family, you can simply let your car be your guarantor!
All you need to do is give your vehicle registration and mileage to find out how much you can borrow against the value of your car, and then once you’ve settled on a figure you simply handover your V5 logbook until you’ve paid off your loan. You still get to drive your car but the lender becomes the legal owner, similar to how a mortgage works.
However, not all logbook loans are equal. Different APR’s give you a glance into how much you will pay back in total, but it’s not all about the interest rate. Some logbook loans have nasty hidden fees which obviously affect the amount you pay back in total. So it is important to do your research and check the reviews. By choosing a logbook loan you are at risk of losing your vehicle if you do not make payments.
Why an Auto Advance Logbook Loan?
It’s pretty simple. We’re an ethical lender regulated by the FCA and will only approve your application if you can realistically payback your loan. If you miss payments or your situation changes, our friendly team are always here to help and work with you as long as you communicate with us.
We don’t let bad credit get in the way as we focus on your current circumstances and a real human being will review your application. The best thing is that we have no hidden fees! It only takes 5 minutes to apply
and you could get your funds within hours using our secure online system.
If you are currently struggling with your finances, please visit www.moneyadviceservice.co.uk for further advice.