Find yourself in need of quick access to cash but not sure if there is a lender out there who will be willing to comply? For many of us with a bad credit rating it can be a real trial to try and find a high street bank who will lend so we need to hunt down other options for a loan.

If you do a quick search on the Internet for Fast Cash options you will find there are actually a few options a available Online which promise to help you out of a financial black hole. Cash advances and quick LogBook Loans are two of the products most popular at the moment with UK citizens. A cash advance offers a very short term loan for up to around £750 which has to be paid back to the lender on the day when your next paycheck gets paid into your bank account.

Log Book Loans on the other hand are a longer term solution to your cash problems with you paying back a agreed amount each week for up to a year and a half. This product also has the advantage of being available for a much larger sum than a cash advance, making them helpful when you have bigger problems. With loans of up to £50,000 on tap you will rarely be complaining that the loan isn’t big enough for your needs.

How Do Log Book Loans Work?

In essence a logbook loan is a secured loan where you get cash by using your car as security. You will have to own your own car and paid off all or most of any finance you had on it. The amount you can borrow will be dependent on the value of your car and will generally be quite a bit lower than the value of your vehicle. Obviously the reason your car is used as collateral for a loan is that if you default for whatever reason the lender can repossess your car and auction it off to make up for any money that you might still owe them.

Its easy to see why people are attracted to log book loans in the UK. They offer large amounts of money which you get your hands on in under 24 hours through a nice and easy application process. With the bad economy these days they’re becoming even more attractive as many individuals struggle to control their finances and look for more ways to make ends meet.

So if you’re a car owner and you have CCJ’s, defaults, a below average credit score or no credit rating then instant log book loans are definitely an option but are they the best option? You might think that because this site is called Log Book Loans UK that I am going to give you the hard sell and try to convince you that this bad credit loans product is the greatest thing since sliced bread but that’s not the case. I actually want to also point out the negative aspects of this credit product and convince you that you need to think very carefully before using them.

Stick around and you might learn something about why there are better options out there, what they are, and how you can take advantage of them.

Applying for instant bad credit loans is now as easy as going online, finding a payday loan company that has the features that you need and filling out a simple online form. Here are the simple steps needed to get the credit you need in a very short time.

Bank Account:

You will need to open a savings or checking account. Some payday loan companies require the account be active for a certain period of time or have a certain amount of transactions before you can use it. These requirements vary from 7-90 days and 10 to 30 transactions. Some other companies ask that your paycheck be direct deposit. Check with the requirements at the company’s website.

Employment:

You will need a regular job that can be verified either online or on the telephone. Your employment must meet the minimum monthly income requirement. In other words you won´t be borrowing £1,500 if your monthly income is only £1,200. To qualify for any bad credit loans you usually have to make at least £1,000 a month. You must provide the company with a copy of your last paystub and they may ask for additional information such as a copy of your driver’s license or voided check. You can easily scan these and email it when you complete the form.

Compare:

Different payday loans companies have different requirements as far as interest rates, time to repay, amounts you can borrow, and documents required. Some companies charge very high rates of interest and if you are not careful you could end up getting stung. Some companies will insist on starting you out with a smaller loan while others will let you start with the maximum. Borrowing amounts range from about £50-£750 and payments can range from 7 days to a full 30 days. You will need to research to find the plan that best fits your needs.

Apply:

Applying for bad credit cash loans is a piece of cake. Read the agreement carefully. You need to understand the interest being charged and know when the loan is due and how payment will be made and also make sure the company reports to all three credit agencies. Once you understand, fill out the simple one page online form and submit. Your cash loan will be approved in a few hours, maximum, and be deposited the next day in your account.

Applying for bad credit personal loans is easy and can save you late charges on bills that are due, helping you protect your credit rating.

Warning:

If there is one thing you can be sure of its the fact that companies that give out loans for people with bad credit are going to try their utmost to get as much money out of you as possible. This means that you are going to have to pay very high interest rates and therefore repay much more than you borrow. Only use them if absolutely necessary, and ensure that you can settle your debts on time to avoid extra charges.

Other Options:

Payday loans aren’t the only product that is available if you are struggling to get credit. You can also take a look at logbook loans and tenent loans to compare which one is the best for your needs.

However what should you do when you’re credit score is in the cellar but you still have to buy a vehicle or a new house? You might have several choices; some of them more palatable, one that could take a lot of time but should allow you to recover your financial position.

One of the first options which a lot of people are deciding on is to get a payday loan or an instant logbook loan which are so well advertised right now. If you need fast cash it might seem like an easy answer, but after you pay back the extraordinarily high interest rate and all of the exorbitant fees it’s quite likely you will be in worse financial shape than you are now.

A much better solution than using logbook loans is to improve credit rating so that you don’t have to resort to these using bad credit loans lenders. This would enable regular lenders to once again issue loans to you for big-ticket purchases such as cars and houses, as well as allow you to save up a rainy day fund to handle small emergencies. However this means that you’re going to have to wait a while before you can get a new car or buy a home. This is actually a good thing because it will give you time to save up the down payment which means you’ll get a smaller loan and lenders will be more likely to give you a smaller loan with a larger down payment.

While you’re waiting and saving up money for a down payment, do what you can to clean up your credit score. Get copies of your credit history and seek professional help to clear out any erroneous information, settle any old debts that are still showing up, and research what the laws in your country are regarding how long bad debts can show up on your credit report. Once you have implemented credit repair your score will go up and you will once again be able to get loans as you need them, but pleasantly you may find that you also won’t need them as much anymore either.

However if you enter into such a loan agreement without your eyes wide open it’s possible that you will end up in even more hot water than the trouble you’re in right now. See, the bad credit lenders understand the mentality of the people who are in a desperate situation, and who don’t have any options because they have bad credit. They know they’ve got you between a rock and a hard spot and can therefore charge you a ton of money in order to loan you just enough to get you through your bad spot.

It’s entirely normal to focus on getting through your current crisis and let tomorrow worry about itself, but once the crisis is over and pay day comes that you pay the loan back plus all of the interest and fees, how much of your paycheck is going to be left? A payday loan is a well-known product that causes this exact problem for people who are in a crisis and don’t stuff to do the math. On payday when that loan comes due, they are suddenly in a world of hurt.

Logbook loans are another type of fast cash loan in which you use your vehicle as collateral. This means you can lose it if you fall behind on your payments. The advantages you get longer to pay back the loan; it isn’t all due on the next payday, you actually usually have approximately 18 months to pay it back. However risking the loss of your vehicle is quite dangerous; for some people losing a vehicle could endanger their livelihoods. Some people even get in so much trouble with these types of loans they take out other loans in order to make the payments on the first loans.

The absolute best thing to do is to avoid any kind of fast cash loan, no matter what. Any emergency you are having today can probably wait a couple of days until you get your paycheck, or at least a couple of hours until you figure out some other way to finance a solution. An instant cash loan or a logbook loan is really not a solution; it’s just a recipe for disaster.

A log book loan is a loan in which the consumer signs over their vehicles logbook to a lending agency in exchange for cash. The car itself stays with the owner but if they fail to repay their debts on time the lender will take possession of the car and sell it to cover the remaining money owed.

Its certainly true that these secured high interest loans are best avoided at all costs. They may have a use for people who are desperate for cash and need to get access to credit immediately and have nowhere else to turn. The problem is that although they might provide a little short term relief the end result is often that the borrower ends up in ever deeper trouble than when they started.

If you rely on your car as your sole method of transport the using it as collateral for a loan is about the worst thing you can do at the best of times. Logbook loans companies though won’t give you a loan which even nearly matches the value of your car so if you end up unable to pay your debts you are going to lose much more than the money lent i the first place.

One top of the risk of losing your car there is also the terrible problem of the 400% interest rates incurred. Even if you never fall behind in your payments and clear your debts on time every week, you are still going to take a financial pounding by using the log book loan. You will often find that by the time you have paid off your debts you have given the lenders nearly three times the initial loan. If you were in financial trouble before you got started, God help you by the time your bad credit loan is paid off.

These secured loans obviously are going to appeal to people who need cash in a hurry and as such are not going to think long and hard about the consequences of their actions. Its for this reason that it might actually be a good thing if they are made illegal, even though I believe in the right of the consumer to choose.

If the bill goes through it will mean that under the Consumer Credit Act a loans for logbook lender will no longer be able to seize a car without a court order. My guess is that these lenders will find a new way to do business that allows them to still get away with charging their exorbitant rates but this seems to be a step in the right direction.

It looks as if the need for a new law has arisen because of the increase in the number of people using them in the last couple of years, probably due to the fact that the credit crunch is effecting an ever larger number of us. Estimates show that over £30 million worth of this single type of loan have been taking out over the last year. And with over 1,000 complaints to the Office of Fair Trading over 4 years it looks like to government has finally decided that it is time to act.

The chief executive of the citizens advice bureau David Harker is quoted as saying: “CAB advisers have seen cases where borrowers have been subject to unfair or misleading sales practices, with lenders failing to ensure borrowers clearly understand the terms of the agreement before they sign up to it, and failing to check they can afford the repayments.

“Missed payments can lead to aggressive debt collection tactics, and problems with bills of sale debts do not end with repossession. The CAB has seen cases where lenders pursue shortfalls after sale aggressively, including putting people’s homes at risk through the use of charging orders – a second chance at securing a previously secured debt.”

According to the newspapers who are reporting this story the logbook loan is a remnant of laws which were introduced in the times of Charles Dickens. It certainly seems as if they have had their day and if society is to progress we need to protect citizens from dangerous loans for people with bad credit that can lead them into even more trouble.

If you have already fallen victim to the logbook loan and are finding it difficult to repay your debts to one of these lenders then you are going to have to get some professional help to find the best way to get out of debt. In the UK your best bet is to contact the Citizen’s Advice Bureau for some expert, impartial advice. With luck you should be able to work towards a solution with doing any more damage to your finances or your credit rating.

What we do need is impartial information which reveals all the facts so that we can all make informed decisions about the action we take in any given circumstance. And if someone wants to use logbook loans as part of their financial strategy when they are having cash flow problems then that should be their right in a free country.

Why Do People Use Car Log Book Loans?

There are many varied reasons why you would think about using these personal loans for people with bad credit but it all boils down to one thing and that is that they have less money than they want or desire at a particular moment. Like all loan products, the log book loan remedies a shortfall in difference between the amount of money you have and the amount you would like. As you are probably aware the log book loan is no ordinary credit, so what is it that separates it from a loan you would get from the high street bank and why are so many people interested in using it?

1. This adverse credit loan product is just about the quickest way available to get your hands on cash. If you own a car you can take your vehicle to their office to have it checked over and you can get the finance you need the very same day.

2. They are accessible to a wide range of people. Normally if you go to the bank and try to take out a loan they will do a credit check to find out what your financial history is like. If yours shows tat you have had problems with credit before there is a greatly reduced chance that you will get the cash you need. Log book lenders are unconcerned about your credit rating and won’t even check it when you apply. All they are interested in is if you have the means to pay off the loan and the fact that you have a vehicle to put down as collateral.

3. You can get access to large sums of cash. Other fast cash loans such as payday advances only allow you to get around £750 but a log book loan is usually only restricted by the value of your car. Most lenders will be willing to lend up to £25000 depending on how much they consider your vehicle to be worth.

4. Varying payback periods. You can decide how long you want to borrow for with loans sometimes being repaid after only one month and sometimes over a two year period.

5. Many local branches. Some people think that a log book loan is going to be hard to organise due to the fact that you have to take your automobile to the lender’s office but with so many branches spread all over the UK you shouldn’t have to go far to get things lined up.

So you see, the car log book loan does have some valuable plus points that aren’t available from any other type of lender. At the end of the day you have to think seriously before using any form of credit to decide whether its the right course of action for your own circumstances.

If you every feel you are being forced into using a loan because you have gotten into such a dire situation that you feel you have no other choice then it may be time to get professional financial help. In the UK your first port of call should be the Citizen’s Advice Bureau where you will find great impartial advice to help you make the changes you need to get yourself back on track.

This first major problem with logbook loans is something which the lenders will inform you of on their very own websites. Its something that should immediately remove all thoughts of using this product from your head, but we tend to ignore the obvious when we are in desperation mode. It is of course the ridiculous interest rates that are applied to these loans.

Visit the site of any logbook loans lender and you will probably see a little table which will highlight the interest rates and the total amount you can expect to repay over the course. The website will fail to point out the importance of the figures or explain that you would be mad to take out such a loan unless you literally have no other choice. The lenders are to busy telling you about the fact that these loans are so easy to get that you can have your money tomorrow and the information about how much its going to cost you is hidden away at the bottom of the page.

The typical APR on one of these loans is a whopping 437% which means that if you take out a £1500 and repay over a period of 78 weeks you will be handing them back a total of nearly £4200. Do the maths and you’ll see this means your relatively small loan have just cost you £2700 or nearly three times what you originally borrowed. I don’t know about you but to me this doesn’t seem like too much of a deal and there’s no chance of someone mistaking this for a low cost secured loans product.

Unfortunately the high interest rates are only the start of the problems with Logbook Loans. The premise of this secured loan is that you put your car down as security for the cash but many of us fail to consider the implications of this before taking the plunge. Its simple really, fail to met the repayments and your car will be taken from you, auctioned and the proceeds will go to the lender. To make matters worse, the log book loans lenders won’t give you a loan for anything like the value of the car so if this happens to you, you’re really taking a big financial hit.

Also, these people are not like those down at your local bank. They won’t try and understand when you can’t make your payments because you’ve just lost your job or you’ve had some unexpected emergency financial situation. There will be no allowances made and you won’t be able to reduce your weekly repayments to suit. Neither will you be able to repayment holidays like you might get from your mortgage lender when you are in trouble. Miss just one payment and most lenders will send round the debt collectors to take your car from you forcibly.

There are other problems and horror stories associated with Logbook Loans but I will leave them for another time. The bottom line is, avoid this product if at all possible and if you have money troubles get a professional to make you up a financial plan that you can stick to.