How Risky Are Logbook Loans?

Many financial experts will tell you to steer clear from logbook loans because of the high cost and the high risks. While they may have good points, it’s not always easy to do especially if you have bad credit to deal with.

For most people who have ever been refused a personal loan by major banks and lenders because of bad credit, logbook loans offer an alternative solution you can use to take care of any pressing financial needs. Whether you have overdue bills to pay or you need cash for an important investment, logbook loans are worth considering. Just remember that the promise of quick cash comes with strings attached. In logbook loans’ case, the strings include the high interest rate and the risk of vehicle repossession. More at this topic can be found at

If you’re in the market to take out a logbook loan, it’s best to know the true cost of the financial product before going through with the application. And no, it’s not as complicated as most people think. At its simplest, we’ll basically just need to focus on two key factors.

The Interest Rate

First is the interest rate. APR which stands for annual percentage rate is the financial concept lenders use to advertise their logbook loan offers. They specifically use representative APR which means that it’s not the actual interest, just the representative that you may or may not get when approved for a logbook loan.

For logbook loans, the average representative APR advertised in the market is 400%. But thanks to tougher competition among lenders, the interest rate has significantly become cheaper over the years. One of the most affordable logbook loans available in the market today is that offered by Varooma Platinum Logbook Loan.

With Varooma, you can borrow anywhere from £5,000 to £150,000 at repayment terms from 3 months to 2 years at Representative APR 98.05%. That’s a pretty good deal if we must say so ourselves. To illustrate how that translates to monthly repayments, let’s say you want to borrow the minimum loan amount. That’s £5,000 at a flat rate of 43% fixed p.a. If you wish to repay the loan over the course of 18 months, you will end up paying a monthly repayment amounting to £456.94 or £8,225 in total.


The Possibility of Repossession

Other than the hefty interest rate, one other reason financial experts do not recommend resorting to a logbook loan is the risk of repossession. When you take out a logbook loan, you are essentially securing the loan against your vehicle. Not keeping up with the monthly repayments means your lender may seize your car and eventually sell it to cover your outstanding balance.

Before the repossession, borrowers are given ample time to keep up with their repayments. Your lender may sic their debt collectors on you at home. If you’re still unable to repay the loan after a given time, that’s when repossession is enforced as dictated by your logbook loan’s terms and conditions.

Should You Take a Logbook Loan?

Obviously, no one wants to lose their cars to a lender because of an unpaid logbook loan but the incident still happens to many borrowers anyway. That doesn’t mean it will happen to you as well. At the end of the day, it’s still all about knowing what you’re getting into.

As borrowers, the responsibility to borrow with caution lies on your shoulders. Regardless of the high interest rate and the risk of repossession, if you’re committed to borrow responsibly enough, logbook loans offer you an easy way out even if it may be costly.

A Quick Review of Guarantor Loans

If you have bad credit and looking to take out a loan, one of the most popular options worth checking today is guarantor loans. As opposed to other loans offered especially for borrowers with bad credit, guarantor loans offer a few advantages making the financial product more favorable than the more notoriously popular options such as payday loans.

A guarantor loan, as the name suggests, is a type of unsecured loan that requires a guarantor to co-sign the debt agreement with the borrower. You can borrow anywhere from £500 to £7,500 or sometimes more depending on your lender. The loan is expected to be repaid in 12 to 36 months.

Compared with other loan products for people with bad credit, guarantor loans, I believe, are the most affordable options available in the market today. It may not offer a high loan amount as secured personal loans but guarantor loans take the cake when it comes to the interest rate. The average representative APR (annual percentage rate) for guarantor loans is somewhere at 49.9%. That’s many times lower than payday loans and logbook loans with average APRs at 1,000% and 400% respectively.

If you’re looking for a quick cash solution to your financial problems and you have bad credit, guarantor loans are your best bet in terms of interest rate. It won’t be as cheap as other traditional loans but it’s definitely way more affordable than other bad credit loans.


Getting approved for a guarantor loan, however, isn’t going to be as easy as when you’re applying for a payday loan. Both loans do not run credit checks on borrowers but guarantor loan lenders run one on your guarantor. This is the part why it make take a few days before your receive your money when you opt for a guarantor loan.

As the borrower with bad credit, it may also be harder to find a guarantor who will be willing enough to co-sign the debt agreement with you. Finding a guarantor can take time too but as soon as you have one, guarantor loans make a suitable loan option that offers just the right blend of cost and convenience.

3 Ways to Get Money Fast Despite Bad Credit

Are you looking to take out a personal loan but has bad credit? You can leave banks and high street lenders off your options. With bad credit under your belt, chances are high your application will be refused. But that doesn’t mean you are left with no choice altogether. Seeing the growing number of people who have bad credit in the UK, there are now more lenders than ever who offer no credit check loans. But while accessible, they can be costly. Before you resort to these loan options, it’s best to check out the three quick and easy ways to get money fast below.

Borrow from family and friends

Whether you need cash for overdue bills, car repair or a medical emergency, borrowing from family or friends is one of the fastest ways to raise funds. There’s no application form to fill out and there is no credit checks to worry about either. You also don’t need to worry about interest rates. If there’s any, it’s sure to be low and most affordable when compared with other loan options.

If you can’t repay the loan immediately, your credit history won’t suffer any hit. But it’s still best to pay back the loan on agreed date as it may cause a strain on your relationships otherwise.


Borrow from your retirement fund

Most experts would say that borrowing from your retirement fund or 401k is a big financial blunder. They have a point of course seeing that taking out money from your 401k means no growth for your money. But at the same time, opting for this route would mean that you are essentially borrowing from yourself. Whatever interest you are paying for the loan goes back to you and not to a bank.

There’s also no need to worry about credit checks. If you have bad credit, borrowing from your 401k is another quick way to raise cash to meet a range of personal needs. Just remember that this option should only be reserved for serious financial emergencies especially since your retirement fund may be lower than if you didn’t take out any money from it.

Take out cash advance from your credit card

Provided that your credit card has sufficient balance to spare, you can consider taking out a cash advance. Most financial experts, again, will tell you to not do this. And again, they have a good point. Credit cash advances usually come with hefty fees and interest. They can be real costly in the end.

On one hand, cash advance from your credit card offers the promise of quick cash. You can usually get the money in a day or so and there’ll be no credit check if you are going to use an existing card. But like with any time of borrowing or loan, it is imperative to remember that there are going to be financial risks involved. When you do opt for cash advance, make sure you pay the money back as soon as you can.


How to Avoid the Payday Loan Debt Trap

Payday loans have been receiving a lot of negative reviews in the past years and rightly so. Advertised with the promise of quick cash, the personal loan offered mainly for people with bad credit come with hefty interest rates.

Most borrowers who are left with little to no option because of bad credit resort to payday loans despite knowing the dangers of the financial product. Making it worse for the borrowers are the controversial and sometimes harassing collection practices. Then there’s the problem of getting stuck with the payday loan debt trap.

Despite the dangers and if you still opt for a payday loan, we can’t blame you but we can help you avoid the debt trap. Below are four tips to keep in mind when taking out a logbook loan:

Consider it as the last resort

One of the lures of payday loans is the promise of quick cash. By quick, it means you can get the cash as soon as you get approved for the loan. This is good news for most people who are struggling to pay overdue bills or to take care of other financial emergencies. While easily accessible, payday loans work best if you consider it only as your last resort. Check all other affordable alternatives first before applying for a payday loan.

Make it a one-time option

If you are left with no choice but apply for a payday loan, it’s also worth keeping in mind that payday loans come with hefty fees. You can apply for a payday loan just this once. Make sure the next time you’ll need quick cash for any financial need, you never to turn to payday loans again. Otherwise, you’re only putting yourself in a kind of debt trap that is not only costly but also hard to get out from.

Seek for recommendations

To make sure that your payday loan is one of the most affordable offers in the market, seeking recommendations from other borrowers. If you know a family member, a friend or a colleague who have taken out a payday loan before, make sure to ask for their recommendations, tips and tricks if they have any.

Shop Around

When looking for the best payday loan deal, it’s also best to shop around and compare your options. Like with any important purchases, take your time to investigate your options as thoroughly as you can. You can use top comparison sites to compare the best payday loan lender in the market. Focus on key factors such as interest rate, loan terms and lender reputation. While you’re at it, make sure to read the small print for more info on hidden fees and charges.

Negotiate with your lender

Not all lenders are strict and hard-nosed. That may be hard to believe but there are actually online lenders who are willing to be more flexible with their loan terms. Your job is to find them. Once you’ve found the right lender, you can put your negotiation skills to good use. Don’t hesitate to speak with your lender if necessary. If you can’t make the payment by end of your payday, for instance, you can negotiate a new term with your lender.

Seek for professional help

When overwhelmed with your debt, there is really one way to go. You need to enlist the help of a professional to help you tread the complicated waters of debt particularly that of a high cost payday loan. Don’t worry because there are no fees involved when you seek help from the right nonprofit organizations.


The Horrors of Debt Collection Practices in the UK

When you borrow money to meet a personal need or an unexpected expense, it’s not just the interest rate you have to worry about. With the increasing number of reported harassments by debt collectors, poor and controversial debt collection practices are another thing to be wary of. This is especially true for high interest personal loans such as payday loans.

In the event that you are unable to pay your debts, your lenders are allowed as per your loan terms and conditions to keep asking and reminding you to pay your bills on time. At some point, your lender will send out a debt collector who is tasked to collect your monthly repayment. Some collectors, unfortunately, are unprofessional and very rude to a point that you can cite harassment if they get out of line.

I, myself, have dealt with a few debt collectors over the years. Fortunately, my debt collectors were pleasant and fairly approachable. I have a couple of friends, however, who weren’t as lucky. Other than rude language, they dealt with collectors who threatened to be physically violent.

Despite laws against harassment by debt collectors, borrowers are not entirely protected. We can complain and report controversial practices but that’s about what we can do. We report then we wait. Sometimes it takes a long time before the harassment complaints are taken care of.

This continued dilemma in the lending industry sadly continues to thrive. Not all harassment complaints are given enough attention leaving borrowers unprotected. As borrowers, we can count on no one but ourselves to know our rights. To avoid being harassed, it is imperative to know what are considered unfair and improper when talking about debt collection practices in the UK. Your job is to stay vigilant all the time. If you are being treated wrongfully, do something by connecting with the right agencies. You may also want to strive to pay your debt on time every month to steer clear from rude debt collectors.

8 Easy Ways to Improve Your Credit Rating Fast

Credit scores can be tricky not because it involves complicated formulas but because the concept has been shrouded with misconceptions. One of which is the belief that fixing a bad credit score is extremely difficult. While boosting your credit score is certainly not a walk in the park, it’s important to note that it’s not rocket science either. If you follow the following tips and tricks below, you are likely to see significant improvements on your credit score over the course of 12 months or so.

Check your credit report annually

Your credit report includes a significant amount of financial data used to formulate your credit score. Errors can happen which is why you can’t take chances. To get it right from the start, make sure you take your time to check your credit report regularly. Once a year should be enough but you are also recommended to do it before making any major applications.

Report and dispute errors

When you do spot mistakes or errors on your credit files, the next obvious step is to report or dispute any errors if necessary. You can do so online through websites such as Experian or Equifax. If the errors were minor, it shouldn’t take much time until they are fixed.

Get a credit card to build history

If you’re trying to rebuild your credit score, credit cards come as handy tools you can use. Remember that your score is all about your performance or behavior as a borrower. That means you need to build a history first if you have little to no history yet. Getting a credit card or two can help you do just that. Just make sure you use it responsibly.

Register to vote

You’d also want to make sure that you are registered to vote. Unless you are on the electoral roll, you are less likely to get approved for an credit application. Registering to vote is super easy so there’s no excuse for you not do it. You can either register online or by post.

Request for a credit limit increase

If you’ve been using your credit cards responsibly, you may be eligible for a credit card limit increase. You can call your card provider and request for one because that will look good on your credit history. Just remember that the 30% rule thumb still applies. That means you still need to keep you charges below 30% of your credit limit as much as possible.


Limit your credit applications

Applying for credit products too often is not going to help you improve your credit score. Every application leaves a footprint to your credit files. The more you apply, the higher the chances of rejection which will also look like you’re desperate for credit. Make sure you limit your applications for products such as credit cards, car insurance and mobile phone contracts at the moment.

Don’t close old credit cards

If you have credit cards you rarely use, don’t close them just yet. Cancelling will only make your credit to drop which will eventually affect your score’s formulation. Rather than close any accounts, use them regularly for recurring bills such as groceries or utility bills then pay the balance off in full each month.

Pay all credit repayments on time

Finally, you need to make sure you pay all credit cards and bills on time. Considering that payment history constitutes 35% of your credit score, one of the best ways to boost your score is if you commit to pay your bills on time. After a few months of consistent on time payments, you should see your score going up.