Log book loans: Pros and cons

If you've experienced credit problems during the last seven years, you're likely to find it difficult to borrow money from your bank. A vehicle log book loan is similar to a homeowner loan, in the sense that you're borrowing cash against the equity in the property. Loans for people with no credit or bad credit are available for up to 30 days with the possibility of renewal. This article examines the pros and cons of taking log book loans.

Advantages of auto title loans

Urgent cash
When you have an immediate need for cash, your options are often limited. Once approved, log book loans are sent to you personal checking account within a maximum of 24 hours. Your cash may even arrive a lot sooner. Any purpose
There are no restrictions on how you can spend the money. It doesn't matter if you're planning to pay your rent or pick up a bargain in the summer sales because the lender won't ask you any questions. Adverse credit
You don't have to pass a credit check, so you can get a personal loan with bad credit. This is particularly useful if you've already been declined by your bank and don't know where to turn. Application process
Personal credit loans are extremely easy to apply for, and the paperwork is often completed for you by the lender.

Disadvantages of auto title loans

Secured debt
You are using your auto as collateral. If you fail to make repayment, your car can be repossessed by the lender. That is the reason why they request a duplicate set of car keys. Some customers have left work to find that their vehicle has already been recovered. Loan renewal
Most customers aren't new, they may have opted to renew the agreement. This involves paying off the interest and extending the term of a secured personal loans for bad credit by a further calendar month. Vehicle financing
You'll need to have cleared a minimum of 75% of any credit that has been used in order to buy your car. You may find that lenders insist that all forms of credit secured against the vehicle have been paid off. Financial problems
If you're struggling to pay your debts this month, will your position be any better in a month's time? You'll have the same bills to pay in 30 days, plus the money you've borrowed and any interest that's accrued. It could make things a lot worse.