• Logbook Loans – What You Need To Know

    September 24, 2015

    A logbook is a legal document that shows you are the owner of a car. It’s like a title deed that provides proof you own a certain piece of land. A logbook loan is therefore a loan secured against a car. It’s more or less like a personal loan that is secured against a home. The difference is that logbook loans have less stringent requirements and are advanced to people who have been declined from high street due to poor credit history. The appeal of this kind of loan is that borrowers do not have to worry about having poor credit rating so long as they own a car that is in good state, has been in use for less than 10 years and has no finance attached to it.

    How much can you borrow?

    Technically, the amount of the logbook loan you can borrow is dependent on the value of your car. The minimum amount is £500 and the maximum is £50000. You can borrow any amount between the minimum and maximum amount set by the lender. There are lenders who allow you to borrow up to 75% of the current value of your car while others put the limit at 50% of the car value.

    How does it work?

    Before being advanced a SimpleLogbookLoan, you will be required to surrender your vehicle registration document (logbook) and sign a document known as bill of sale. This document details that your lender is, from the time you take the loan, the temporary owner of your car until you clear paying the loan you have been extended. The good news is that the vehicle remains in your possession and you can continue driving it as you repay your loan.

    How long do you have to wait before you get the money?

    There are many logbook loan lenders in the UK and the approval process is usually pretty fast so long as you have a logbook and your car is in good state. Basically, the loan can be approved within hours. You can get the loan by cheque which takes 4 days to mature and there are a number of lenders that offer quick cash service within minutes. The disadvantage is that it attracts an administrative fee set at 4% of your total loan money.

    What are the advantages of taking a logbook loan?

    The most appealing aspect of this loan product across the UK is the fact that it does not discriminate against people with a poor credit history. Lenders who offer this kind of loan do not carry out credit checks and therefore chances of being declined are almost nil provided that your car is in good state. Secondly, the requirements are not as stringent as compared to loans offered by mainstream banks. The approval of the same is fast and there is no need to disclose what you need the money for.

    Disadvantages of logbook loans

    While logbook loans have provided a safe haven to individuals in the UK who would otherwise not qualify for any kind of loan due to their poor credit history, there is also a downside to it. The interest rates charged are inordinately high. Secondly, you need to legally own a vehicle before you can use it as collateral for a logbook loan. Thirdly, in the event that you fall way back in repayments, the lender can repossess your car and even sell it to recap his money.

    In a nutshell, it’s good to do proper research and settle on a lender across the UK whose reputation is solid and offers a great logbook loan deal. You can read reviews or simply talk to their customer support staff and understand their logbook loan product.

  • Measures I Took To Jumpstart My Credit Score

    August 12, 2015

    Like many other people, I abhor bad debt. When growing up, I always pictured myself being financially stable by the time I was in my mid 20s. Of cause, the naivety at the time cannot be reconciled with the harsh reality at the moment. Wishful thinking characterized every aspect of my life. In short, at the time, it was easier said than done. This however does not mean that I have lost focus or don’t believe that I can lead a life free of debt. For a long time, this has been my philosophy.

    However, credit scores and the whole aspect of credit rating has had an impact on how I approach some things especially those related to making me look good in the eyes of financial institutions. I am a firm believer that I don’t need to have debt to be seen as being credit worthy. In fact, to me, that is hogwash. I simply can’t fathom how on earth am supposed to have debt in order to be seen as reliable or capable of paying off bills. I believe that I can purchase anything on Amazon and still pay it using my debit card. Unfortunately, that’s not how things work.

    Credit rating is a reality and if I am to get access to credit in the foreseeable future, then I need to be in good standing. My credit report should be a reflection of what financial institutions expect or else, my goose is as good as cooked. It’s perhaps this realization that set me onto the path of trying to jumpstart my credit report from the scratch. I had to make drastic decisions in order to ensure that I built a credit score that might come in handy in the foreseeable future. Not having anything in mind, I decided to take a loan from the bank against my own savings. Actually, this entailed putting aside some of my savings and then taking a loan against the same.

    The idea was to simply pay the monthly installments of the loan without fail with the aim of ensuring that I get a good credit rating. This is an advice I got from an expert and I thought it might be good to try. Borrowing money I could handle against my savings ensured that I jumpstarted my credit rating. As I paid diligently and without fail, I managed to build up a healthy credit score. The good thing is that after clearing the loan, I could now access my money and use it for whatever I wanted. I also slept sound at night knowing that should anything come up and I needed urgent credit, I had a healthy credit rating to talk about!

    Well, the truth of the matter is that sometimes we have to make unpopular decisions for own good. Seeking for credit we don’t need just to jumpstart our credit score might seem like a bad idea but it’s actually a good thing in the long run. It gives you peace of mind in the knowledge that you can be advanced credit without much of a hassle in the event that you need it. Like me, many probably find this a herculean task but it’s a necessary evil. After all, if you can’t beat them, then maybe it’s about time you joined them.

  • What Are The Benefits Of Having A Good Credit Score?

    August 5, 2015

    Being indebted is something that we all loathe. The fact that we are in a financial mess and can’t get our act together is something that feels really bad. While getting in bad debt is usually a consequence of the bad decisions we make, getting out of it requires commitment and financial discipline. Seeking for a loan and being turned down when you badly want the same is a nightmare for most us. It probably explains why having a good credit score is essential in every aspect. This piece is for those people who might be wondering why it’s essential to have a good credit score. I mean, what are the benefits of having a good credit score?

    • High credit score helps in getting great insurance rates

    Bluntly put, the higher your score is, the less insurance companies see you as a risk and view you as someone reliable to make premium payments timely. If you have a bad score, chances are that insurance companies will charge you slightly higher premiums on your life insurance, auto insurance or homeowners insurance. The argument is that individuals with high credit rating are statistically more inclined to be safe drivers, live relatively long and are safe homeowners.

    • Credit provides you with a great buyer protection

    Using your credit card to make purchases provides you with buyer protection against identity theft, fraud and other problems that come with using cash for purchases. The cards are safe and you don’t have to worry about being mugged and losing your cash. Also, timely payment of credit card bills work in your favor in so far as high credit rating is concerned.

    • A good score improves your chances of employment

    Strange? Well, not really. Majority of employers nowadays tend to run credit checks on their prospective employees. Employers are likely to hire individuals whose score is good as it’s an indication that they are reliable and trustworthy. That said, if you have a poor score, it could be the reason you missed out on that job you applied for recently.

    • Good score is instrumental with renting

    There are people who avoid getting credit and decide to rent until such a time when they have enough to write a check and buy their own home from their savings. While this is a good thing, the same cannot be said of renting a house. Landlords tend to check the credit rating of their potential tenants before renting houses to them. This is particularly true of landlords who own high end apartments or flats. As such, if you have no credit rating or a poor score, chances are that you will be charged high deposit or you will be rejected by your landlord all together.

    To sum it up, having a good credit score is a good thing after all. However, the idea should be to have debt that you can effectively manage rather than committing yourself to debt you can’t afford to pay on time. After all, the benefits of having a good credit rating are immense.

  • A Look at 5 Things That Make Up a Credit Score

    July 22, 2015

    If you’ve never heard of the term credit score, chances are that you’ve never sought for a loan or simply lives under a rock. In a world where credit has become so pervasive, understanding what makes up a credit score is of paramount importance. Every once in a while, we might need a cash injection from financial institutions to purchase a home, start a business or even go for higher education. When this happens, how good your credit score is the difference between you getting the loan and being denied.

    Simply put, a credit score is a numerical number used by various lenders to ascertain how credit worthy you are. The numerical number is essentially based on your credit report that is prepared by various credit bureaus across the UK such as Experian, TransUnion and Equifax. However, it’s important to note that scores from the 3 credit bureaus aforementioned are never the same. This is because formulas for arriving at a credit score are not universal and that is why there is always a slight difference between your credit scores as formulated by various bureaus. When seeking to borrow money, your lender might refer to only one credit bureau or all 3 of the above in the UK.

    Ever wondered what makes up your credit score? If yes, we are going to take a look at 5 things that have an impact on your credit score as a person.

    • Payment history

    Your payment history makes up approximately 35% of your credit score. It all boils down to how timely you make your payments. Do you default on payments, bankrupt and always pay bills beyond the due date? If yes, then you will have a very low score. On the other hand, timely repayments work in your favor and positively impact your score.

    • The amount of money you own

    The money you owe makes up 30% of your credit score. The deeper you are in debt, the worse your score is. Credit bureaus look at how much you owe on your various accounts, the number of accounts under your name with accompanying balances and how much credit you have. It’s advisable that you consume only 30% of the credit you have as it positively impacts on your credit score. For instance, if you have credit of say $2000, it would be prudent to have a balance of $600 on your card.

    • Period credit has been in use

    This makes up 15% of your credit score. The lengthier your credit history is, the better it is for your score. However, this does not mean that you can’t get a good score in a short period of time. As such, if you are to cancel a credit card, ensure it’s not one that you’ve held for a long period of time.

    • New lines of credit

    Interestingly, seeking for new lines of credit can negatively impact your credit score. It makes approximately 10% of the score. However, the impact is not so big. Basically, when you inquire for new credit, lenders make inquiries on your credit report and this can inadvertently hurt your score. The logical thing to do therefore would be look for new credit within a given timeline say 30 days so as not to negatively impact your score.

    • Types of credit

    Types of credit you have can also negatively impact your credit score though on very low level. In essence, having different types of credit such as auto loan, student loan or mortgage loan is instrumental for your score.

    Being conversant with all the aforementioned gives you an idea of the measures you need to take in order to ensure that your credit score is good. It’s all about avoiding pitfalls, making timely repayments and periodically checking the status of your credit report. After all, a healthy credit report is good news when you urgently need credit for whatever purpose.

  • How to Improve Your Credit Score Using Secured Loans

    July 15, 2015

    You will agree with me that a low credit score is an indictment of sorts on your personality, responsibility not to mention a liability to you as a person. Being seen as unfit to be advanced any kind of credit is something that rubs off the wrong way to many. We all want to be seen as responsible people who can manage credit and have a stellar report. However, this is not always the case as sometimes, due to a combination of factors, we find ourselves with a low credit score. If you have no credit history to write home about and you feel as if this might affect your future endeavors to get credit, it’s about time you pondered on how to improve your credit score from scratch. But how can you go about it? Here are ways in which you can improve your credit score using secured loans.

    • Credit unions and banks

    A number of commercial banks and credit unions are open to providing you a secured loan using your own savings as security or collateral. You simply need to deposit some cash in your savings account and request for a loan for an amount equal to or less to the amount you deposited in the savings account. The risk is very small to the banks as you won’t have any access to the money in the safe deposit account until you have completely repaid your loan. Timely repayments of the loan without any defaults will serve to improve your credit rating/score and put you in a better position to get credit when you want it in future.

    • Credit builder loans

    If you seeking to improve your credit score, credit builder loans provide you with a perfect opportunity to do so. Essentially, you simply take a loan but the amount you are advanced by the bank remains in a certificate of deposit or savings account. That money you have been advanced cannot be touched or used by you until you have cleared your loans. Once that is achieved, you are free to use your money however you want it or move it elsewhere if you so wish.

    • Use of personal property

    Boosting your credit rating can also be done by using your personal property to secure a loan from a financial institution. If you own land or a home, you can take a loan and use it as collateral. Again, the idea is to boost or jumpstart your credit score by ensuring you make timely repayments without failure.

    • Check with your bank or credit union before borrowing

    Your secured loan will have no impact on your credit score if it’s not reported to the relevant credit bureau. As such, before you borrow, it’s important that you check if the financial institution you are dealing with reports secured loans to credit bureaus. Luckily, most of the financial institutions report secured loans to credit bureaus which essentially mean it will appear in your credit report. However, remember to make timely payments as that is what counts in the long run.

    Whether you are seeking to boost your current score or seeking to jumpstart your credit score, the above ways can work in your favor provided that you are committed to repaying your loan on time. They give you an idea of the proven ways that can repair your credit report or simply jumpstart it if you dint have one to talk about. It’s always important to consult experts or read important information on credit report, credit scores and even money advice at https://www.moneyadviceservice.org.uk/en  You will be privy to information that will help you make informed financial decisions.

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