Logbook Loans vs. Other Types of Loans
Most people go through tough financial times at some point while some people desire to make major investments but are hindered by lack of resources. For both cases, one possible and ideal solution is to apply for an appropriate loan. But how do you know which type of loan to get? Should you get a logbook loan or a homeowner loan? How about unsecured options such as payday loans?
This guide will help you peruse and compare loan options available in the market today.
One of the most common loans to consider is homeowner loans which are secured against your home. Since homes have bigger values, it also follows that loan amounts are larger usually up to £250,000 and loan terms longer typically up to 25 years. On average, APR for homeowner loans is somewhere from 5% to 8%.
†Obviously, this loan type is ideal for homeowners and those who need larger amounts for whatever purposes you may have in mind. And if you want to know more about the financial product, it would help to check out 77 Finance for additional information.
If you don't own a home but you own a car that is free of financing and is less than 10 years old, you can opt for a logbook loan instead of a homeowner loan. For this option, the loan is secured against your car which means you may lose it in case of nonpayment for several months.
For logbook loans, the amount that you can borrow ranges from £500 to £50,000, definitely smaller than what the first option offers. Nonetheless, it is still significantly larger than unsecured loans. APR rate is somewhere at 400%.
If you don't own a home or a car but you need cash fast, you may want to check out payday loans. The financial product is currently one of the hottest options particularly for those with bad credit seeing that it's easy to avail and approval is almost instant.
All a payday loan usually requires is proof that you are currently employed. If your income meets the minimum requirement then chances are you'll get our money within minutes after application. And because payday loans are unsecured, loan amounts are lower starting from £100 to £1,000 and the APR is pretty high, usually at about 1,000% or more.