Friday, September 16, 2011

Pay that New and Fancy Car with Logbook Loan

By Rita K. Acosta


If in the past people were required to pay in cash for the things they wanted to purchase, nowadays individuals can access a lot of financing options for their purchases, without being required to make down payments. Whether you want to buy a house, a fancier car or expensive electronic devices you cannot afford paying for immediately, you can request a credit card or different types of loans. And because this market is continually expanding, financial institutions and banks have come up with a lot of solutions for people on a limited budget.

For example, if you want to purchase a new car, but you don't have enough money to make a down payment, you have two main options to consider. You can either go to the bank and request a loan or you can resort to Logbook loans. The first option applies only to people with credit history or a good credit rating and, according to each bank's terms and conditions, the interest rate and other features of the loan greatly differ.

What sets the two options apart is that, in the case of a bank loan, you're securing the loan against yourself, while with car Logbook loans, the loan is secured against an asset, so the loaner is sure he can recuperate his investment in case you fail to make the monthly payments in time. Therefore, the Logbook loaner needs not take any additional precautions and check your history, since he is sure you're going to pay or lose the asset you've secured the loan with.

What makes the second option more popular among people? Well, there are many individuals struggling to get loans but have a bad credit history, which makes them untrustworthy for any banking institution. Secondly, because the Logbook loaner needs not perform any type of credit check on new customers, the approval can take place in the following 24 hours after submitting the application. Therefore, people can access the money immediately to pay for the car or for any other thing they want to purchase.

Because this type of loan requires securing it with an asset, the loaner is sure he's going to recuperate the initial sum. This shortens the approval time and allows individuals to pay for the items they want to buy.

Therefore, if you have a bad credit history and no bank is going to give you a loan, there's no need to despair yet. Logbook loans are perfect for people who struggle with a bad credit score or want to access the money immediately to pay for their needs.




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