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Getting the Most of Logbook Loans

If you've been borrowing money through personal loans, chances are you've already heard about logbook loans at one time or another. Logbook loan is a type of short term loan using your car as security. It is, therefore, a secure loan where you can borrow from £500 to £50,000 depending on your vehicle's worth. To compare its advantages over unsecured loans such as guarantor loans, you may visit Money Super Market for more information.

If you've run through your options and chose logbook loan as the ideal solution to your financial woes, there some things to keep in mind to get the most of the borrowed money. Like with type of loan, there are interests and risks involved which means you need to be smart to avoid hefty rates.

Pick the Lender with a Reasonable APR

One of the best ways to steer clear from unreasonable high rates is to carefully choose your lender. Don't settle with the first lender you find online. Instead, try to make a lot of comparisons. List down at least 5 or more lenders and compare their APR. While you're at it, you should also investigate hidden and upfront fees if there are any.

Pay On time and Regularly

Once approved, make sure you know how much you need to pay per week or per month. You don't want to pay late fees or any other related additional charges. As much as possible, pay your dues before or on the day of your schedule repayment. To also avoid the risk of losing your car, send payments regularly. Lenders are bound to do something such as repossess your car if you fail to pay for several months.

Aim to Shorten Repayment Terms

Finally, if you want to reduce your interest rates some more, you can aim to shorten the terms of repayment because the shorter the term, the lower the interest rate. You just need to make sure that you can afford the weekly or monthly bill to avoid default or missing a payment or two.

While logbook loans are fast and looks like the best solution for short term financial needs, it also comes with responsibilities. And the best way to take advantage of this opportunity to secure a loan on your car is to pay consistently and regularly.