Reasons Logbook Loan Is Most Popular in UK
Finance (Photo credit: Tax Credits)
The United States’ recession last decade had ushered in a new era of financial awareness. This event not only affected the economic and financial status of the mainland US, but it had also triggered an economic slump in its European counterparts: especially the UK. In order to keep up with the financial crunch, the UK government has raised its taxes just so the current government service will not be affected. “Bigger taxes” means less money to be taken home by the privately employed individuals; which then leads to unpaid bills and personal debts. Fortunately, logbook loans offer quick financial fixes for those unforeseen instances where you needed cash the most. Here are the top reasons why a logbook loan is most favourite in UK.
A Bank Account Is Not Required
A lot of financial services companies require customers to have bank accounts that have been active for a year with a specific amount of maintained balance prior to a loan approval. Sad to say, many UK citizens don’t have bank accounts. Old school financial companies still consider a borrower’s inability to maintain a bank savings account as a sign of a financial ineptitude.
Cars Can Be Used As Collateral
Take note: only registered vehicles under the borrower’s name are allowed. Since almost all workers in the UK have their own vehicle, “Car collaterals” is one of the top reasons why logbook loans are most favourite in UK. Financial entities, which offer logbook loans, also consider motorcycles as vehicles. Hence, borrowers can also use their two-wheeled transporters as collaterals. Some logbook loan companies even allow their borrowers to use their vehicles for the entire duration of the loan.
No Credit Check
Credit history is considered more private than a laboratory test nowadays. An employer can easily go through an applicant’s health and medical background, but it may find it difficult to get hold of an applicant’s credit history due to the “Equifax” rule of extreme secrecy. However, this rule can be overridden if the company pays for the confidential information. As mentioned in reason #2, logbook loan companies prefer vehicle collaterals as oppose to paying more to obtain a borrower’s credit history.
Fast Approval
When I say “fast”, I mean “same-day” fast. The logbook loan business is a booming industry. Many businesses who offer the same logbook loan service outdo each other by promising faster cash releases. Some of which even releases cash in a few hours.
Flexible Payment Schemes
Banks are very notorious in dictating the duration of a loan. They even charge early termination fees to pay everything in advance. Logbook loan companies prefer borrowers who can pay everything up as soon as possible. This gives them the opportunity to use the money to satisfy the needs of another borrower. Allowing borrowers to terminate their logbook loan contracts the soonest time possible serves as a huge breather for the borrower since this would mean less interest. Once the loan is all paid up, the borrower can then again renew with a higher ceiling amount.
Author Bio:
At click 4 logbook loan we compare the top logbook loan providers for price, price, loan value, car specifications, eligibility and terms. We assist you to select the best lender for you.
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Category: Loans
