Logbook loans, an alternative to Guarantor Loans
Are you in a dilemma regarding the type of loan you want to apply? Well, with a certain credit limit you can apply specifically for a type of loan that would help you in fulfilling your requirements.
It is important to note that both Logbook Loans and Guarantor Loans that we provide are specifically for people with bad credit. Hence, in both these cases, the concerned person who is applying for a loan needs to have a certain emergency that is to be covered up. Under such state of affairs, both these loans have equal opportunity to be placed against claim of a person.
Choice of loans:
For a person, with a bad credit score, who is applying for a loan in case of emergency, it is important that he or she should be aware of the issues that are associated with this loan. Different loans have different sets of requirements, and therefore, it is important that a person is completely aware of his demands, and apply specifically for that loan.
There are chances where one can choose a type of loan over the other. That is primarily because, that loan is specifically suitable for him or her and goes in with all their requirements.
Explaining Guarantor Loans:
In case of this loan, a person who is withdrawing a certain amount of money needs to place a guarantor, who will accept the conditions associated with that loan and provide an assurance to payback that amount.
Generally a loan is given against collateral, however in this case, a person needs to stand as a guarantor.
- For loans of short term, an amount of £100 to £750 can be borrowed, with a Representative APR ranging from 304% to 842% and time period is from 6 to 24 months.
- In case of loans for long term purpose, an amount of £500 to £12,000, can be borrowed with Representative APR of 44.9%., and for a period of 7 years.
Thus, a known family member can be the required guarantor in this case.
Explaining Logbook Loans:
In this case a person’s vehicle is mortgaged against a certain amount of loan that is taken. Generally available for a shorter time period, this loan is also suitable for people having bad credit facility.
- The monetary amount ranges from £250 to £50000.
- The rate of interest is something around 9.45%.
Thus, in place of collateral, one’s vehicle is seized for a specific time period.
Comparison between these loans:
Delving deeper into financial aspects, it can be seen that in comparison to Guarantor Loans, the Logbook Loans are a better option and a true alternative in every respect.
- In case of Logbook Loans, one’s own vehicle is seized. Hence there is no third party involved.
- With a bad credit score, getting a proper guarantor who would act on your behalf is difficult. Since in future legal issues are associated hence nobody willingly takes this responsibility.
- There are chances that there might be some issues amongst the guarantor and borrower. In such cases, defaulting of payment can happen. Hence it is best to stick to your own vehicle as collateral.
Thus, with time and given options, Logbook Loans have truly emerged as an alternative to Guarantor Loans.