How to Obtain a Logbook Loan Cheaply?

Logbook loans have been getting a bad rap lately, thanks to the overwhelming number of people who have had worse financial situations after taking out the said loan. However, regardless of how risky a logbook loan is, there’s no denying that sometimes it may be the only solution to bail you out of a cash emergency. Contrary to popular belief, you can take out a logbook loan without going broke for the rest of eternity. Here are a few tips.

Make Your Payments on Time

One of the most common factors that make a loan expensive is the timeliness of your payments. Every time you miss your due date, you’ll be subjected to late charges and other penalties that go on top of your repayment amount, making it even harder to pay off as time goes by.

Borrow Only What You Need

Because of the substantial amount tied to your vehicle, it could be tempting to borrow as much as its market value allows. However, keep in mind that if you borrow in excess of what you need, you’ll most likely waste the money on things you don’t need anyway. Keep your debt to a minimum so you’d have lower interest charges and you can pay it off sooner.

Inquire About Early Repayment

While paying off your full loan amount earlier than expected wouldn’t cross your mind, this is something that you should definitely think about even if you think that you don’t have the money right now. For instance, if you received a bonus from work, an inheritance, or perhaps won the lottery, it would be wise to settle the debt as quickly as possible, and of course, you’d want to do it without any additional charges.

Never Stretch Your Repayment Period

One of the best things about a logbook loan is the flexibility of their repayment terms, in that you can choose how often and how much to pay. While you might want to choose the lowest repayment amount possible, keep in mind that this prolongs the time that the loan is withstanding, thus accruing more interests.

Find a Reputable Lender

In the UK, logbook loans are regulated under the FCA, and the lenders must follow a strict code of practice. Finding an authorised lender reduces the chance of suffering from unfavourable loan rates. In fact, authorised lenders will compete for customers by offering the best possible terms.

Do not be afraid to shop around. While logbook loans are generally seen as an expensive type of loan, there’s a good chance you’ll find what you need by doing your homework. For more loan options, visit Just Logbook Loan and get a quote for free!

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Dangerous Traits of People with Poor Credit Rating

Poor credit doesn’t happen overnight, but rather, it comes as a result of a string of poor decisions when it comes to your finances. If you suffer from bad credit, know someone who do, or are in the road of getting there yourself, remember these traits that typically cause bad credit and avoid them at all costs.

Relying on Credit Cards

Having too many credit cards in your wallet can be downright dangerous, like in the case of theft. There’ll be more work to do and more banks to notify. Additionally, if you find yourself relying on plastics to purchase basic needs, perhaps you have to check where you are financially. If you can’t afford to pay for basic necessities in cash, you surely are on the way to a huge credit problem.

 

Making Credit Card Cash Advances

Whenever you have to swipe your credit card at a nearby ATM each time your savings runs dry is a clear sign that you cannot manage your credit and that you’re struggling to make ends meet. Relying on cash advances can be very expensive. Just think about all the interests you could’ve saved instead. Furthermore, if you fail to make a payment, this snowballs into a larger debt and can hurt your credit score significantly.

Ignoring Your Bills

If you find yourself not bothering at all on whether or not you’re paying on time and in full, this probably means you’ve stopped caring about the consequences on your credit.

 

Not Having a Financial Plan

One of the most common reasons we struggle to manage our money is because we do not have a solid plan. It all starts with setting up a budget and tracking where the cash goes. A month or two of consistently listing down your expenditures is usually enough to realise where you spend your money, and by there you can start making tweaks. It’s either you limit your spending on some or all categories, or find another income source, at least until you’re back on your feet again.

 

Not Having an Emergency Fund

Many cases of bad credit rating have stemmed from lacking an emergency fund. Without a rainy day fund, a sudden misfortune, such as loss of job or illness can suddenly seem like the world has crushed down on you. While an emergency fund may not solve all the sudden financial problems, having it could help make things a lot easier because at least you won’t have to borrow as much, or may not need to borrow at all!

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Most Common Reasons for Loan Rejections

If there’s one thing that is certain in life, it’s the fact that we’re going to face some financial hurdles from time to time. When the time comes that financial assistance is badly needed, it could be very frustrating when you cannot be granted a loan when you need it the most. Here are the top reasons why you could be rejected on your loan application.

Change in Employment

One of the things lenders ask for whenever you apply for a loan is the nature of your job or business. Basically, they prefer individuals with a proven track of a stable job, preferably someone who has been a part of the same company for quite some time. While a few job changes for the sake of getting a higher salary or position may not hurt at all, lenders may see it as a red flag if you change jobs too frequently.

Too Many Loan or Credit Applications

Having too many loan applications that aren’t spaced out may be seen negatively, because lenders may doubt your ability to pay your existing debts. Furthermore, too many applications at the same time could bring a huge damage to your credit rating in general.

Having Too Little Credit

On the contrary, having too little credit is almost as bad as having bad credit. Without enough credit history, lenders will have a hard time predicting how you are likely to behave on your future repayments, thus they will see you as a high-risk borrower. If you have an existing credit card, perhaps it would be best to keep it a while longer.

Late Payments

Whether it’s on your rent, utilities, or credit card payments, being constantly late can almost certainly trash your application. Lenders almost always prefer those with stellar credit rating, because they want to make sure that you will be able to pay them back.

Fraud

Any misinformation in your application, whether intentional or non-intentional, can cause immediate rejection. Furthermore, you may face charges or become blacklisted. Make sure you check your credit report regularly for errors.

Not Enough Supporting Documents

While all providers would pull out a copy of your credit report to check your payment behaviour, many of them will still require supporting documents, such as bank statements, tax certificates, assets, certification from your employer, etc. This gives them the leverage to explore other means to collect money from you should you default.

 

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Credit Card Tips for Beginners

Are you excited to get a new credit card or planning to get your first one? If you haven’t one yet and are thinking about applying, then read this guide first to learn the things to watch out for before grabbing your very first plastic.

Only Charge What You Can Afford to Pay in Cash

The most common problem with holding a credit card is that we are given access to purchase things, even if in reality, we cannot afford them. Treat your card as you would your own cash. Only charge things that you have the money to pay for, and avoid

Do Not Carry Balances

If you’re used to constantly having balances on your cards, this could pull your credit score down. In addition, the interest charges on these balances can be very expensive in the long run. Avoid paying the minimum amount only, because it doesn’t get rid of the debt, but rather, it sinks you deeper into bad debt.

Do Not Miss Your Due Dates

Perhaps the most important factor that determines your credit score is your payment history. Whenever you’re applying for a new card, new loan, mobile contract and other utilities, and even when looking for a place to live, your provider will check your payment behaviour in the past, and most likely decline you if they see that you keep on missing your due dates.

Avoid Too Much Applications

Too much credit card applications may not only lower your credit score, but it could make managing your debt extremely difficult. Apply only for new credit when you’ve gained enough experience, and if your credit’s in good shape.

Do Not Close Your Oldest Credit Card

Maybe you’re working on your budget and avoiding debt, or perhaps got a new plastic card with better features and rates. Whatever the case may be, do not close your oldest credit card just yet, especially when you’re on the process of rebuilding your credit. You can keep a card and stay out of bad debt with proper discipline. Keep in mind that the worse your credit rating becomes, the more difficult it will be to manage your finances.

Compare Rates and Features

When you’re shopping around for a card, keep in mind what you need. Perhaps you buy gas frequently, or travel often because of your job. You can look for a miles card, cashback, and any other type of card. While the interest rates and annual fees should also be taken in consideration, you won’t benefit from a low interest card if you’re not carrying balances.
Do Not Max Out Your Credit Limit

One of the factors that contribute to your credit score is the credit utilisation, which is actually the way you use up the credit limit assigned to you. As a rule of thumb, you can use up to 70% of your credit limit to keep your credit healthy. You’ll also realise the benefits of not maxing out your card during cash emergencies.

Never Make a Cash Advance

Cash advances is almost the same as charging things that you can’t afford to pay off in cash, only that this is worse. When you make a cash advance, the interest rates are higher, not to mention that no grace period is given. Let’s say you paid off the cash advance the next day, the interest rate charged couldn’t be reduced.

Avoid Letting Anyone Use Your Card

We all have those friends and relatives who constantly ask our help for their purchases by borrowing our credit card. While small, infrequent transactions here and there may not be harmful enough, regular big purchases may put you in trouble if your friend defaults. Not to mention the tension that it could put on your relationship.

Following all these tips can help make sure that your credit card journey will be one that is smooth and fruitful.

 

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