Logbook Loan Interest Rates

When looking at any sort of financial product, most people will immediately look at the interest rate. They will see whether the rate looks good when deciding which company to go with or whether to even bother at all.

If you do this with logbook loans, you will find that the interest rates are very high compared with some other types of loans.

However, they are suitable for people with bad credit records who cannot borrow money anywhere else. This means that they are a risk for the company offering them and therefore they charge extra because of this. They worry that people may not be able to keep up with the repayments as they have shown in the past that they were not able to do this. This means that they charge everyone extra money so that they can use that extra to cover any future losses. It may seem unfair but all companies have to make a profit and they are no exception.

You may decide to compare the interest rates and use the cheapest company that you can find. Although is a good idea, you should not only do this when choosing. You need to be aware of all of their other charges as well. They may charge you setup fees, administration fees or charge you for opening the account. Then they will have fees for late repayments, for missing repayments and if you change your repayment schedule, they may change the rate of interest. It is worth reading the small print to find out not only what you will be paying to start with, but what you might pay in the future if you have trouble repaying.

It is also worth finding more out about the lenders. This should help you to know whether they will be helpful if you need it or not. Some have better reputations than others and it is worth getting to know more about the company that you will be dealing with. Unless you know someone who can recommend a company or you have used one before, reading online reviews and opinions is the best way to find out more.

Julia Written by: