As we grapple with money matters in day to day life, often we are faced with shortfall of funds and many times it is an urgent requirement. Hence, in order to be prepared for such situations, you must be aware of the different forms of loan options available for you and understand them as each type has a specific purpose.
The banks offer mainstream payday loans no credit check like education, home or other loans against some assets that are kept as security with the bank, but taking a loan can be a lengthy process and the approval for loan shall also depend on your credit history. Therefore, you should look at some options that are relatively quick and easy available loans. One such option is a logbook loan. It is designed to meet the need of quick funds by people who are unable to get loans from other means either due bad credit history or because they need a high amount of money. The pre-condition to apply for this loan is that the borrower has a vehicle and ready to keep it as collateral.
The ease related with obtaining money from a logbook loan makes them a preferred medium of fund borrowing for those who have been refused borrowing elsewhere. Some of the benefits of logbook loans are:
- Swift money: The reason behind this swift money lending service is that the logbook loan lenders do not make credit history checks on borrowers and do not always conduct detailed income checks. In exchange of the money, the borrower has to keep his vehicle as security and sign up a ‘bill of sale’ in the name of the lender. The amount one can borrow will depend on the value of the vehicle that is used for collateral. Further to this debt management , if one already has a loan running on the vehicle, some lenders may still lend you a bit of money, as long as the vehicle is worth more than what is owed on it.
- No added burden: The usual perception around short term loans is that they can cause financial difficulty, because if repayments are not made timely, then you will get charged even more, but actually, this situation can be avoided by making a calculated choice of loan. These loans for people with bad credit only last for a very short period of time as compared to logbook loans which can be repaid in 78 months and above.
- Cheaper in comparison to other loans: Logbook loans can be cheaper than some other loans, especially because you have something to declare as collateral, this insures the lender of the risk and assures him that he will be able to retrieve his money even in the worst case scenario of non-repayment.
However, one must analyze his need well and then decide upon the amount of loan he wants and sign up for a tenure in which he is sure to return the money back.