Tag: APR

Want To Get More From A Logbook Loan? Apply These Special Tactics

Logbook loans are very expensive and risky. People are advised to stay away from logbook loans by considering alternatives that are cheaper and less risky. However, people going for logbook loans are out of options and need the cash urgently. If logbook loan is the only option on the table, here are some tactics that you can apply for extra value.

Look beyond the APR when picking a lender

The main focus when picking a lender for logbook loans dealer is the annual percentage interest. It is advisable to ensure you only select the lender with the lowest rate. However, you need to go beyond the APR and extend to other areas. For example, you should carefully look at the repayment schedule to ensure it rhymes with your monthly wage schedule. Other things to check for include hidden penalties that can raise the total loan amount by a huge margin.

Insist on getting a bigger room of flexibility during repayment

Many people going for logbook loans think that the loans are inflexible. However, many lenders such as JustLogbookLoan are very flexible and can make adjustments during repayment. Go through the agreement carefully and insist that the lender gives you payment flexibility in case of revenue inconsistencies. For example, if the lender has indicated that every payment must be made by 10th of every month, insist on a 2-3 weeks grace period to cater for delays in salary in case of unavoidable issues. You could also ask the lender to give room for renegotiation and adjustment of the amount paid every month with a small margin.

Focus on a specific problem and borrow the least amount possible

Once people realize they can borrow some cash against their cars, there is a tendency to go for the maximum amount as opposed to what one needs. This will plunge you deep into a bigger financial problem that can last for many years. Instead, you should maintain high specificity by ensuring you only borrow what will meet a specific need. For example, if you wanted £700 to cater for an urgent bill, why borrow more? By borrowing less, the overall interest will be low and the burden easy to shed off.

Ensure that the borrowed amount is repaid within the shortest time possible

The truth about any loan is that the more you borrow, the more you will repay. In the case of a logbook credit, the period greatly determines the amount you will pay by the close of the repayment session. Therefore, it is important to commit to repay the loan within the shortest time possible. Even if you have other types of credit, you need to weigh the inherent risks involved. For example, a borrower with a school loan that does not incur interest should give extra focus to the logbook loan. Note that this does not mean clearing other less risky loans should be pushed aside. Indeed, they are equally risky and pull down the personal credit score. To handle all the loans within a short time, it is important to draw a debt recovery plan that will help to clear all debts, raise credit score, and edge you closer to financial freedom.

 

 

 

Three Items a Borrower Can Negotiate With the Logbook Loan Company

Borrowers with poor credit score face a monumental task of convincing banks and other financial institutions to approve their loan requests. Because of poor credit history, the banks view them as high-risk parties and prefer to decline their request for loans. One of the top options for people with poor credit score is a logbook loan. The lenders are only interested in the borrower’s repayment capability and do not factor the credit score. Though it might appear an easy line of credit, it comes with serious risks such as getting the car taken away, sinking deeper into financial woes, and high APR.

To keep these risks and dangers low, borrowers are encouraged to negotiate with the lenders when applying for the loans. In this post, we outline three items for negotiation to enjoy an easy repayment period and relationship with the lender.

Annual Percentage Rate (APR)

The amount you pay back after borrowing a logbook loan is determined by the annual percentage interest rate. Though many lenders have very high-interest rates that reach up to 400% APR, the borrower should not simply take what is written on the agreement. You should engage the lender and ask for a lower APR. Most of the lenders will be willing to lower the APR with a small margin. You can compare the lender’s rates with others in the market and showcase what you are willing to take. For example, if the lender has pegged his loan at 400% APR, indicate you are only willing to take it if he lowers the offer to 300% APR. Good lenders will not let you take the deal to another competitor.

Early repayment penalties

Unlike other types of loans where borrowers are encouraged to pay as fast as possible, many logbook loan dealers attach penalties for both late payments and early payments. However, why should you be penalized for early payment? This is one of the hidden penalties that many people rarely identify on the agreement sheet.

As a borrower, you should carefully read through the loan agreement to identify unnecessary penalties and insist on having them expunged. For example, if you decide to clear the loan early, the lender should only ask you to clear the total amount agreed at the beginning amount as opposed to attaching a penalty. Other penalties include late repayment with a day or two.

Loan flexibility and recollection procedures

Before signing the loan agreement from the selected logbook loan, it is important to look at the lender’s flexibility and recollection procedures closely. Here, you should negotiate to get greater flexibility and subtle recollection procedures. Insist that the lender allows you some flexibility for repayment in case you fall behind with one or two payments. For example, you can ask the logbook loan lender to leave room for renegotiation to make up for late payment without recovering the car immediately. You should also agree on the method of vehicle recovery in case you fall behind the agreed repayment schedule.

Do not simply take what is printed on the agreement, negotiate as much as possible for higher monetary value and smooth repayment period.