Smart Tips for Logbook Loan Borrowers

With competition getting hotter for personal loan lenders, borrowing money has been breezier and less costly for borrowers. If logbook loans used to come with 400% or more Representative APR, there are now more lenders offering rates below that. This is good news for borrowers. Despite the rates falling, there are tricks that some lenders do to bloat your loan's cost. Avoid that pitfall by making use of the following tips we've put together for you:
1. Double Check Your Credit Score
Having bad credit puts you at a disadvantage. It messes with your loan approval not to mention that it also affects your loan's interest rate if you do get approved. In general, you are charged higher interest rates for personal loans if you have bad credit.
Just to cover your bases, it's best to double check your credit score. It's not saying that credit agencies aren't doing their job right but they do make mistakes from time to time. To gauge how your current credit rating fairs, head over to Experian for a free credit report.
2. Consider Cheaper Alternatives
Before you join the vast majority of borrowers who take out logbook loans, you might want to step back first and consider alternatives. If you don't need a big amount, a good way to get by is to check out credit unions, peer to peer lending or even family or friends. The interest rates aren't only way lower than what logbook loans offer but repayment terms are more flexible too.
3. Shop and Compare Deals
When you see the first good deal, don't sign any dotted line just yet. One of the fundamental tips that borrowers shouldn't fail to do is shop around. This is true for any type of loans. It pays to check out several lenders and compare various dealing according to their Representative APRs.
So take your time to hop from one lender to another. Get free quotes and compare your top choices. From here, choose your options well and go with the one that balances price, convenience and customer service.
4. Always Read the Small Print
While APR is an excellent parameter when gauging a logbook loan's cost, what many borrowers fail to do is read the small print. Remember that the lowest APR does not necessarily mean the cheapest. By not reading the small print, you may end up with hefty hidden charges and fees essentially cancelling out the lower interest rates.

5. Know the Risks
Like with any type of financial product, it always pays to know the risks. With logbook loans, the biggest risk to closely look at is repossession. Because the loan is secured against your car, you should take extra caution when borrowing money to avoid the consequences.
6. Aim to Repay Early 
At the time you are borrowing money, you might not think about repaying the loan early. But it does help to inquire early repayment fees if there are any. Most logbook loan providers may charge you if you repay the loan early but there are those who are more considerate. If there is a chance that you can repay the loan early before maturity then it makes sense to go with a lender that does not have early repayment charges.