Cash Converters used to offer logbook loans until a few years back.
However, now there are many other companies offering logbook loans on
very competitive terms. When searching for logbook loans cash converters
a borrower may see several other companies in the business of logbook
loans. What are the things borrowers should keep in mind while
evaluating the various lenders that show up for logbook loans cash
converters? We discuss this in a little bit detail here.
History
In the maze of companies offering logbook loans, there are only a few with a good track record. These companies have built a strong customer franchise through excellent customer service. The leading companies in this respect are Logbook Loans Ltd, V5 Loans and Mobile Money. All of them have been in the business for several years and are still favoured by borrowers of logbook loans cash converters.
Rate of interest
As many of you are aware, logbook loans cash converters are offered without any credit check meaning it is mostly offered to people with poor credit history. Lending to those with poor credit history carries a much higher risk than otherwise. Recovery rates in logbook loans are much lower than in mainstream lending. This also entails higher legal and administrative costs for the logbook loans cash converters companies. To account for all this, logbook lenders often charge a much higher rate of interest than other lenders. However you can see that payday loans from companies like Cash Converters carry still higher rates of interest. Given that logbook loans are expensive, a lender should look at the rate of interest (represented as APR) of the various companies including logbook loans cash converters and compare them. We do not advise you to necessarily take the cheapest option rightaway. You should also look at other factors like borrowable amount, loan term, additional interest and penalty should a default happens etc. Of course, it is not your intention to default, but given your financial situation, such a possibility should not be ruled out. Thus a borrower should assess all these factors in logbook loans cash converters.
Speed of service
Oftentimes, you approach logbook lenders when you are in dire need of money. In such situations, it is important that you receive the money in the shortest possible time. While most logbook loans companies pay the money by cheque, others give you the option of receiving the money instantly through electronic fund transfer. However, they charge a fee for this facility. You should decide whether you require cheque or instant transfer. If transfer is required, you should compare the associated costs of various logbook loans cash converters.
Fine print
Some of the factors coming under fine print have been discussed in the earlier section on rate of interest. Different logbook loans cash converters follow different policies in matters regarding penal interests, prepayment penalties, recovery of shortfall in case of taking possession of the car etc. You should be fully aware of what you are getting into while signing up for a logbook loan. Take some time to read the terms and conditions. Also, feel free to ask questions if you have any.
Conclusion
We have outlined the important factors you should consider while evaluating the various logbook loans cash converters. As with any loan, it is important that you keep up with the repayments to avoid penalties and eventual loss of your car. You should consider logbook loans only in case of absolute necessity. And never borrow more than what you can manage to repay. Thousands of people have used logbook loans cash converters to meet their urgent money requirements without issues by following these simple principles.
History
In the maze of companies offering logbook loans, there are only a few with a good track record. These companies have built a strong customer franchise through excellent customer service. The leading companies in this respect are Logbook Loans Ltd, V5 Loans and Mobile Money. All of them have been in the business for several years and are still favoured by borrowers of logbook loans cash converters.
Rate of interest
As many of you are aware, logbook loans cash converters are offered without any credit check meaning it is mostly offered to people with poor credit history. Lending to those with poor credit history carries a much higher risk than otherwise. Recovery rates in logbook loans are much lower than in mainstream lending. This also entails higher legal and administrative costs for the logbook loans cash converters companies. To account for all this, logbook lenders often charge a much higher rate of interest than other lenders. However you can see that payday loans from companies like Cash Converters carry still higher rates of interest. Given that logbook loans are expensive, a lender should look at the rate of interest (represented as APR) of the various companies including logbook loans cash converters and compare them. We do not advise you to necessarily take the cheapest option rightaway. You should also look at other factors like borrowable amount, loan term, additional interest and penalty should a default happens etc. Of course, it is not your intention to default, but given your financial situation, such a possibility should not be ruled out. Thus a borrower should assess all these factors in logbook loans cash converters.
Speed of service
Oftentimes, you approach logbook lenders when you are in dire need of money. In such situations, it is important that you receive the money in the shortest possible time. While most logbook loans companies pay the money by cheque, others give you the option of receiving the money instantly through electronic fund transfer. However, they charge a fee for this facility. You should decide whether you require cheque or instant transfer. If transfer is required, you should compare the associated costs of various logbook loans cash converters.
Fine print
Some of the factors coming under fine print have been discussed in the earlier section on rate of interest. Different logbook loans cash converters follow different policies in matters regarding penal interests, prepayment penalties, recovery of shortfall in case of taking possession of the car etc. You should be fully aware of what you are getting into while signing up for a logbook loan. Take some time to read the terms and conditions. Also, feel free to ask questions if you have any.
Conclusion
We have outlined the important factors you should consider while evaluating the various logbook loans cash converters. As with any loan, it is important that you keep up with the repayments to avoid penalties and eventual loss of your car. You should consider logbook loans only in case of absolute necessity. And never borrow more than what you can manage to repay. Thousands of people have used logbook loans cash converters to meet their urgent money requirements without issues by following these simple principles.
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