10 Things To Know Before Borrowing Against Your Car
Posted in: Car Insurance, Driving Tips, News.
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Loans secured against vehicles are one of the most popular lending options for 2020. Unfortunately, there are lots of reasons why individuals may find themselves in a position whereby they need to borrow money. From unexpected repair costs to expensive bills, the list is endless. However, there is help available, and logbook loans are definitely a good option.
Nonetheless, it is extremely important to make sure you get the right loan for your needs specifically. This is exactly what this post aims to help you with. Read on to discover ten key points you must consider when taking out a logbook loan…
1. You Must Be Able to Keep Your Car – A lender should never take your car during the loan phase. The only reason the company has a right to take your vehicle is if you have failed to adhere to the payments you have agreed on.
2. Application Process – Are you able to provide everything that is required of you?
3. Period Of Grace – Does the company offer a period of grace? I.e. you don’t have anything to pay for a set period of time, such as 30 days.
4. Quick Deposit Of Money – Make sure the money will be quickly deposited into your account once the loan has been approved.
5. Do You Have A Bad Credit History? – If so, make sure you opt for a lender that is willing to consider applicants with a bad credit history. The good news is that there are lots of logbook loan companies who are willing to do so.
6. Fixed Payments – It is recommended to opt for a company that allows you to pay back your loan via fixed payments. This way you know exactly what you need to pay back every month. Thus, your repayments are easier to manage.
7. No Early Settlement Fees – There are companies that charge individuals for wanting to pay back some of the logbook loans earlier than is required. Stay away from these lenders.
8. Good Reputation – It is vital to go for a company that has a good reputation. Read reviews that have been left by other customers to see whether this is the case. If the lender has a bad reputation this is something you should easily be able to pick up on.
9. Amount You Can Borrow – How much are you able to borrow? In most instances, companies will give you the ability to borrow up to 70 per cent of your vehicle’s worth. However, if you do not need the full 70 per cent, make sure you go for a company that is willing to lend you less.
10. Repayment Terms – Last but not least, let’s end on one of the most important points of them all – the repayment terms. You need to make sure you are happy with the amount you are going to be paying back each month and how long you are going to be paying it back for.
If you take into account the ten points that have been mentioned you should have no trouble finding the logbook loan for you.
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