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Why do People Get Logbook Loans?

When it comes to today's marketplace, the typical consumer is lucky to have a number of loan options at his or her disposal. Today, you can walk into any high street bank and walk away with the money you need. At least, that's what all the commercials say. It isn't always like that. First of all, banks are very picky about who they accept for a loan and who they don't. They might perceive you as a high risk, especially if you are unemployed or have a bad credit rating. If that's the situation with you, then trying to persuade or charm someone in the bank to lend you money is pretty much futile.

You have a much better chance of applying with a different type of lender, like a payday lender, pawnbroker or a logbook loan company. Take a look at why many people today, especially in UK, are more and more applying for them, especially logbook loans.

A logbook loan is a perfect way for a person burdened by bad credit rating to get the much needed cash, but this isn't all there is about it that makes it popular.

First of all, while the payday loan does pretty much the same thing in terms of letting you borrow money quickly and easily, a logbook loan won't limit you to a certain amount. This is where a logbook loan is in advantage over a payday loan. With the later, you can borrow only a limited amount of cash, usually a couple of hundred pounds (no more than 100-1.500). Logbook loans, on the other hand, allow you to collect a much larger amount as it can range from 500 to 50,000. This depends on how much the lender evaluates your vehicle to be worth.

In addition to this benefit, the APR for a logbook loan also tends to be lower than that of a payday loan. While it will still be a bit higher compared to standard loans, the fact is that, since it is secured, you pose less of a risk for the lender to borrow you money.

Another great thing about logbook loans is that, although you'll be putting your car's logbook registration document as a collateral, you still get to keep the vehicle itself and use it as before. This is why a logbook loan is a much better solution of using your car to get a loan than a pawnbroker is.

Yet another logbook loan benefit is that it can be used for any purpose. The lender will not ask you what you will use the money for. All they want to know (and they will check this) is whether you can make repayments or not. Are you going to repay another loan, start a business, or go on a trip around the world with this money, is not their's to know.

Finally, logbook loans are very quick and easy to get. There are no excess requirements about them and, once you've been approved, you'll get the money within 24 hours on your bank account.

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