With so many lenders offering logbook loans in the market today, choosing the best deal for your needs and budget can be incredibly confusing. Just because one logbook lender advertises their offers as the most affordable in the market doesn't mean it's the best option. There are key factors to consider in if you want the best logbook loan deal and they include the following:
When looking at logbook loans, one of the most important things to first look at is the representative APR. APR which stands for annual percentage rate will give you a clear picture of how much your loan will cost annually. APR therefore covers interest rates, charges and fees associated with your loan.
On average, the representative APR for logbook loans is at 400%. Stiff competition among providers, however, has pushed the rate down over the years. To get the best deal, the trick is to find logbook loans with the lowest representative APR as much as possible.
Other than the representative APR, there are also hidden fees to look at more closely. Hidden fees are other charges you may not know about unless you read the small print. If you want the best logbook loan deal, it's not just about the lowest APR. You have to dig deeper by either asking your provider about hidden fees or investigating the small print for details about said fees. To know more about hidden fees, head over to Telegraph UK.
Loan amount offers vary from lender to lender. In general, the offers start from as low as £500 to as much as £50,000. The amount you can borrow will essentially depend on your vehicle's official trade value. Some lenders let you borrow as much as 70% of said value while others only offer up to 50% of said value. As for repayment terms, it can be anywhere from a few months up to 36 months.
If you want the best deal, look for lenders that offer flexible loan amounts and terms because then you can tailor your loan according to your needs and budget.
When shopping around for logbook loans, it's also best to keep processing time in mind. Since there's no credit checks involved when assessing logbook loan applications, the approval process is generally quick and easy. Some lenders guarantee approval within the same day. You can then receive your money via wire transfer within minutes after approval. Naturally, the faster the processing time, the better the deal will be especially if you need the money for a financial emergency.
Let's not forget about customer service. If you want the best logbook loan deal, you need to look for providers with excellent customer service. Lenders with good customer reviews are usually more helpful with borrowers. When you don't understand how logbook loans work, you need a lender who will go the extra mile to help you with your application from start to end. This is why customer service is important when shopping for your logbook loan deal.