If you have never had misfortune of using a log book loan then you can consider yourself lucky, this is a product which once you get snared by the company you will be lucky to get out of the situation with your financial well being intact.
Log book loans companies actually offer a credit product that sounds like it really could be a great way to relieve your money worries. If you are a car owner they are willing to give you a loan secured on your car so you can get access to quite large sums of money depending on how much your car is worth. Usually how the formula works is that the loans company gives you about 50% of the lowest market value of your vehicle and you pay them back in weekly instalments until your debt is paid off.
The loan application is real quick and can mostly be carried out online, you'll often get your money in under 24 hours so its good if you need money fast and because your loan is secured to your vehicle the lender is unconcerned about bad credit rating. However the downsides mean its not worth risk of taking one of these loans out.
I'll talk about why you should give log book loans the wide berth in my next post.
Monday, 8 June 2009
Wednesday, 3 June 2009
What To Do If You Have A Bad Credit Rating
For people with a CCJ against their names, missed credit card payments and mortgage arrears the possibility that they have a bad credit rating is high. The consequences of having a bad credit rating don't rear their ugly head unless you try to get credit from a lending agency. When you do, these companies will inquire about your credit past and will most likely come to the conclusion that you present an unacceptable risk which will result in you being turned down for the loan you require.
The answer to this problem is never easy but you two main choices are to make efforts to improve your credit rating or find a lender who is willing to give you money regardless. Putting your credit score in order will take some time and effort so most people who are looking for money will opt to find a more lenient lender.
The answer to this problem is never easy but you two main choices are to make efforts to improve your credit rating or find a lender who is willing to give you money regardless. Putting your credit score in order will take some time and effort so most people who are looking for money will opt to find a more lenient lender.
Monday, 1 June 2009
The Payday Loan
Payday loans are probably the credit product that i most used in the UK by people with bad credit ratings. Its a very short term loan that is taken out during the month when you are running short and paid back at the end of the month when you get your next paycheck.
A payday loan is only available to people in full-time employment and are only available in small amounts, usually up to £750. For some situations that can be ideal, if you have a true financial emergency. They should only be used if you have no other way to access cash and you would be in a dire situation if you failed to get your hands on the money you need.
The reason for them only to be used in an emergency is because of the very high interest rates which mean you pay back much more than you borrow leading to possible further money problems in the future.
A payday loan is only available to people in full-time employment and are only available in small amounts, usually up to £750. For some situations that can be ideal, if you have a true financial emergency. They should only be used if you have no other way to access cash and you would be in a dire situation if you failed to get your hands on the money you need.
The reason for them only to be used in an emergency is because of the very high interest rates which mean you pay back much more than you borrow leading to possible further money problems in the future.
Saturday, 30 May 2009
Finding Loans If You Have A Bad Credit Rating
If you find yourself needing a loan but are unfortunately in a position where you have built up a bad credit rating then you have immediately reduced the number of options open to you regarding the loans available.
High street banks have always been a little picky when it comes to handing out credit, they are after all in the business of making money and it makes good business sense to lend money to those who are the most likely to pay it back. Banks also charge relatively low interest rates on their loans so if you have a good credit rating they are the only choice when it comes to getting your hands on the cash you want. Even for those how think they have a bad credit rating its worth checking with a trusted bank to see if they are will to give you a chance.
In times when the banks decline you, you will need to do down another route which is littered with high interested rates, loans secured against your property and some unsavory characters who are out to get as much money off of you as possible. Hopefully I'll be able to give you some advice which will help you get the money you need at the best price and at the lowest risk.
High street banks have always been a little picky when it comes to handing out credit, they are after all in the business of making money and it makes good business sense to lend money to those who are the most likely to pay it back. Banks also charge relatively low interest rates on their loans so if you have a good credit rating they are the only choice when it comes to getting your hands on the cash you want. Even for those how think they have a bad credit rating its worth checking with a trusted bank to see if they are will to give you a chance.
In times when the banks decline you, you will need to do down another route which is littered with high interested rates, loans secured against your property and some unsavory characters who are out to get as much money off of you as possible. Hopefully I'll be able to give you some advice which will help you get the money you need at the best price and at the lowest risk.
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