Logbook Loans vs. Other Types of Loans

While logbook loans provide you a convenient way to produce quick funding for whatever purpose you have in mind, there are other types of loans that may also be suitable for your needs. It pays to compare logbook loans with other options to know if the financial product is indeed right for you.

Logbook Loans

First, let's understand what logbook loans are. They are secured personal loans designed for people with bad credit. You can borrower from £500 up to £50,000 payable for 3 months or up to 5 years. The most important requirement you'll need to prepare is your car and its V5 document. As long as you own your car and it's free of any financing, you are almost always good to go.

Homeowner Loans

If you have good credit and you own your home, a homeowner's loan is a probably a much better choice. The loan type is also secured, this time on your house, allowing you to borrow even more flexible amounts up to £100,000 or more which you can pay for 10, 15 or 25 years at the most competitive rate of around 5 to 10%. Processing, however, may take longer than logbook loans as the loan product involves more requirements and documents.

Guarantor Loans

Borrow from £1,000 up to £10,000 payable in 12 to 36 months with guarantor loans. If you don't own your home or a car then raising funds through guarantor loans is a good way to do it. Even if you bad credit, you are still welcome to apply. All you'll need is to make sure that you have a guarantor who is 21 years of age or above, has good credit and can provide proof of regular income.

Payday Loans

Another quick remedy to your immediate money troubles are payday loans. Unlike logbook loans, however, payday loans are less flexible and more expensive. You can only borrow from £100 up to £1,000 and it has to be paid in 30 days. The interest rate falls somewhere at 1,000% APR or more depending on your lender.