Member Article

Payday loans Vs Logbook Loans: A Brief Analysis

Need for borrowing a loan can occur at any point in time in life, therefore knowing your options of lenders, well in advance can help you make intuitive decision. Although there are numerous lenders’ options available on the market, but most of them would be of no use, if by any chance you fall in the category of poor credit borrowers. Nonetheless, under such circumstances, short-term loans will fit the bill perfectly.

There are two types of short-term loans available in London—Logbook loan and Payday loan. Here is a brief analysis of both types of loans stating why Logbook Loans make a feasible option.

Payday Loan

A payday loan is a short-term loan that lasts only for few days. It is used as a bridge loan to do away with little emergencies that occur in day-to-day life, for example unexpected bill.

Logbook Loan

A Logbook Loan is a short-term to mid-term loan that can lasts from 3-24 months, and is granted against the V5 logbook of borrower’s vehicle. It is one of the easiest ways of getting loan money, especially when the borrower has a poor credit history. It is because the lender does not check credit history of the borrower. However, there are other conditions that borrower is required to fulfill in order to qualify for the loan. Much like payday loans, borrowers use logbook loans in London to cover up certain unprecedented costs for life’s daily challenges.

So which loan makes a suitable option?

With the reluctance of banks in lending money to borrowers with poor credit history, short-term loans are tremendously gaining importance in London. This is why payday loan and logbook loans make a better alternative, but when compared among themselves, logbook loan makes a better alternative than payday loan for borrowers who don’t want to get trapped inside the vicious circle of payday loans. Moreover, borrowers can use their logbook loans to pay off their payday loans.

Interest Rate

Although payday loans may seem to be very attractive considering an instant solution for getting fast cash in hand, but many individuals fail to realize the high interest rates that come along with payday loans. Logbook loans, on the other hand are secured against the value of the borrower’s car, which means APRs are lesser than Payday loans. Besides, Logbook loans are more manageable debt and easier to pay off.

Conclusion

If you are in need of money and your car holds a decent market value, then a logbook loan is the best way forward.

Source: http://www.loanmymotor.com/

This was posted in Bdaily's Members' News section by David Faulkner .