Comparing logbook loans with other types of personal loans

If you have bad credit, you probably have heard about logbook loans. After all, who wouldn’t with all the buzz that logbook loans have generated since their introduction. Before logbook loans became a reality, applying and getting approved for a loan when one had bad credit was a tall order. Most simply applied with the hope that all will go well. However, this was not always the case considering that lenders insisted on a person having a good credit rating. The introduction of logbook loans was however, a game changer of sorts.

This was a loan product that was specifically designed for individuals with a less than average credit score. In other words, it was a bad credit loan. If you have scanty information about logbook loans, it is imperative to note that this is a secured type of loan where a person uses their as security to get a loan. Simply put, only individuals that legally own a car can be considered for a logbook loans. While in the past bad credit individuals had an uphill task getting approved for a loan, the burgeoning of providers offering bad credit loans in the UK market has changed the landscape for the better. Nowadays, individuals are spoilt for choice whenever they want to apply for a logbook loan. So what are the other types of personal loans that bad credit individuals can apply for?

Doorstep loans

Doorstep loans as the name denotes are delivered right to your doorstep and ideal for individuals who need a short term loan repayable on the next pay day. A person can apply for as little as £50 or as much as £1500 depending on their needs. The beautiful thing about doorstep loans is that a lenders agent comes to your doorstep, asks a number of questions, takes your primary details and make an instant decision. The payments are also collect from the comfort of your home. The big disadvantage about doorstep loans is the fact that they charge or rather attract a very high APR (around 1500%) which if not careful could lead a person into a cycle of debt.

Payday loans

As the name suggests, this is a short term loan whereby a person repays the amount they have been advanced on the next pay day. The loan is secured by a person’s pay check. Usually, people go for payday loans whenever an emergency crops up and the pay day is a week or 2 weeks away. Given the fact that it is meant for bad credit individuals, payday loans attract hefty interest rates and therefore a person should borrow prudently.

Guarantor loans

If you have bad credit, borrowing a loan from a bank is akin to trying to walk on air. It is, simply put, impossible. However, if you have collateral or a guarantor with a good credit rating, getting approved for a loan becomes simple. Guarantor loans as the name suggests are the kind of loan where you need a person with a good credit rating to guarantee you on a loan. This is ideal for individuals who have no collateral and yet need to borrow a loan. You simply look for a guarantor whose credit score is perfect and willing to guarantee you the loan. A guarantor co-signs the loan and in the event you are unable to repay the loan, he is liable to repay it.