How to Find the Best Logbook Loans Companies

admin   16/09/2016   Comments Off on How to Find the Best Logbook Loans Companies

If banks deny you a loan because of bad credit, one great option that will never fail is a logbook loan. The lenders give you an easy and reliable method of getting all the cash you want to address the issue at hand. However, the rising number of logbook lenders in the United Kingdom has made it an uphill task for borrowers because many operate with different rules and conditions. This post outlines four steps on how to identify a good logbook loans company.

  • Look for a legalized lender

The best logbook lender should be licensed as a broker under the UK Bill of Sale Act. By dealing with a legitimate company, you are sure that the standards and conditions of services will be of high quality. Have a look at the license of the lender either on the company’s website or by visiting their offices. You might also want to confirm with the licensing authority to establish whether the lender has received any complaints or negative feedback. If past users have had a lot of complaints, you might need to consider a different lender altogether.

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  • Check the interest rates of the logbook loan

The best lender should have affordable interest rates. Though the interest is usually very high compared to what is offered by commercial banks, compare what different firms are charging. Because the standard term for logbook loans in the UK is 58 weeks, make sure to compare the annual percentage rate (APR) because it can be very high at times. The secret is ensuring that you repay the money as soon as possible. APR is calculated by a factor of interest, method of repayment, frequency, amount, and length of repayment. Make sure to pick the logbook loan firm with the lowest interest rates.

  • Ease of getting the loan

If you want urgent cash, the best lender should have easily accessible quotes and assess your car promptly to release funds. Today, there are lenders who can give you cash within 24 hours of application. However, you need to carefully review the terms and conditions of such lenders especially the interest rates and repayment conditions.

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  • Review the experience of past clients

Good logbook loans provider in the UK are built on the platform of best practices. They go to great lengths in offering better services and driving customer satisfaction. However, you can only tell this by meeting past clients. Check different companies’ websites to meet with past clients and read through their reviews or testimonials. If the reports are negative and there are no signs of improvement, the chances are that you will also have a similar story. However, if past users give very positive feedback; do not hesitate to take a loan from such a lender.

Conclusion

Logbook loans provide a good option to people who cannot access conventional loans from banks. They are easy to get and do not have credit history checks like banks usually do. To get the best offer, it is prudent to find a lender using the outlined four main points. Besides, make sure to repay the loan back as soon as possible to avoid interest hikes that can harm your credit score even more.  For even more information about this loan product, visit JustLogbookLoan

Why Reintroducing Sub-prime ‘Liar Loans’ is a Bad Idea

admin   09/09/2016   Comments Off on Why Reintroducing Sub-prime ‘Liar Loans’ is a Bad Idea

When Unemployed Loans (selfcert.co.uk) announced it would reintroduce liar loans in the UK market earlier in 2016, the mixed reaction from stakeholders was not unanticipated. However, this is a bad idea that does not simply risk the financial sector, but all other related economics sectors. Here is a closer look at the liar loans and why their introduction by Unemployed Loans is not an idea to flirt with.

Liar-loans/ self-certs are a recipe for a financial crisis 

Though Unemployed Loans correctly points out that about 99% of the UK lenders are unwilling to give loans to unemployed people with bad credit, easy money will not make things any better. When self-certs were introduced because of the impact of the financial crisis, many people rushed to take the easy money without a clear plan for repayment that resulted in very high default rate. Because of this, Lehman Brothers and other financial institutions collapsed.

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By floating easy money, Unemployed Loans’ self-certs will float free money and prices of commodities such as mortgage will take a free fall. The free money will make purchasing power suddenly shift, stock market brokers will make millions in a short time, and the entire stock market will be thrown into panic. At any moment, the forces of the market must always be the key drivers to any economic adjustment. However, reintroducing the subprime liar loans will alter the balance and risk the already shaky UK economy.

The model of operation looks to circumvent the law

One question that experts keep asking is how selfcert.co.uk intends to operate in the highly regulated UK market. By operating from outside the UK market, the company only seeks to circumvent the established laws meant to protect the industry. Following the failure of self-certs during the previous introduction, the banking industry has been performing well because of progressive laws. Indeed, the laws allow more people to secure loans through different methods including banks, budgeting loans from local authorities, credit unions, and other legal lenders such as payday establishments.

While the lender promises that all unemployed people can access credit, the risk of losing national privileges could be too much. In the UK, people who take out loans are free to take complaints to the Financial Ombudsman Services for resolution. This helps to protect people from unfair treatment and abuse. This might be one legal loophole that Unemployed Loans’ wants to utilize to charge more on loans.

Easy money is a platform for killing personal efforts

The establishment of credit reports that evaluates five main areas of personal finance including new credit, type of credit, payment history, the amount owed, and length of credit history  is targeted at creating personal responsibility at all levels. By discouraging use of credit score, the lender will be killing personal efforts. Instead, it should consider working with more investors to create more job opportunities, educate young people on financial literacy, and partner with government to grow the economy.

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Even through the intention of Unemployed Loans (selfcert.co.uk) may look noble, it could be a roadmap to kill the financial sector and entire UK economy. Instead, unemployed people must be encouraged to look at their strengths while the government works harder with the private sector to provide bad credit loans and create more jobs. It is because of these considerations that Liar-Loans should be discouraged at all costs in the UK.

 

The Best Guide on Repairing Bad Credit Scores Efficiently

admin   09/09/2016   Comments Off on The Best Guide on Repairing Bad Credit Scores Efficiently

When banks look at your credit report, they will deny you a loan if it is below their recommended level. However, bad credit ratings has an even more direct impact on you because many institutions peg their decisions on several things including credit score reports. For example, a bad credit score will deny you phone contracts, mortgage, insurance and even employment in some institutions. To address the problem of bad credit loans denial by banks, you need to raise your rating.

The main method of raising your credit score is repaying current loans, and overdrafts. However, there are other unique methods that you can use to raise your credit score faster.

Take a personal instalment loan

Taking small personal loans and repaying them on time will help you to raise your credit score very fast. By considering a small loan, the risk will be lower and most financial institutions will not deny you. Because your interest is built on credit score, you can even take a secured loan and repay as fast as possible. Remember only to use an institution that reports to a credit agency to be sure that your fast repayment will keep raising the score.

Correct errors on your credit report

While the main source of credit reports for financial institutions are credit reference agencies, the reports they give are not always devoid of errors. This is because the agencies are third parties and have to rely on other parties to gather financial details. During the process of gathering credit details about you, the following can make the report contain errors.

  • Delay by your financial institutions to submit a loan clearance report.
  • Failure by an organization such as a bank, phone company, or insurance among others to remit your progress report. This can be caused by a closure, acquisition, or information security issues.

By getting your report, it will be easy to check all the inconsistencies and have them corrected immediately. Indeed, this should be the first thing to do before applying for any loan or after denial of a loan because of bad credit.

Borrow from your account

Though this is a highly viable option for raising credit score, very few go for it. Ask your bank for a Certificate of Deposit and take a secured loan against the said Certificate of Deposit. Then, put the cash in a high yielding fixed-deposit account and use the borrowed cash to repay the original loan progressively. This will be picked up by the credit reference agencies to raise your rating over time. However, this method will require some initial deposit.

Use your credit card regularly

One of the parameters used to map your credit score is credit history. To get a good history, make sure to use your credit card regularly as opposed to leaving them unused for a long time. This way, your credit company will not give credit agencies notice of closure which lowers credit score. You might also consider using a secure credit card that links to a line of credit and limits spending.

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4 Critical Things to Do If You Are Denied a Bad Credit Loan

admin   09/09/2016   Comments Off on 4 Critical Things to Do If You Are Denied a Bad Credit Loan

What should I do? This is the main question that keeps rushing through people’s minds after being denied loans because of bad credit. Many banks and financial institutions are built on the principle of lowering operational risks and optimizing profitability. Because of your poor credit score, denying you credit helps to keep risky parties away while encouraging them to build creditworthiness before they can return for a loan. Well, here are 4 most important things to do after getting denied credit.

  • Avoid reapplying for another loan immediately

Once a financial institution denies you credit, ask yourself why? If the reason is a bad credit rating, other financial institutions will also check on your report and deny you a loan. Therefore, do not just apply for another loan whether in the same bank or a different one immediately.

Every time you re-apply for a loan (whether successful or not), the record goes on your credit report and affects the score. The more you apply, the poorer the credit score will be. This will make it even more difficult to get credit and other related services such as a phone contract.

  • Check and correct your credit score report

Most lending institutions and other credit-offering companies such as phone companies providing mobile contracts refer to credit agencies to check the status of their clients. Once you are denied a loan, make sure to immediately check with the credit reference bureau for a credit report. The report will show the transactions that have made the credit score to be low.

Many are the times that credit scores do not give the right position of an individual because some information is wrong or missing altogether. For example, if you cleared a loan and the financial institution that loaned you delayed or forgot to submit a clearance report, the score will be low. Identify any error, omission, or misrepresentation in the report and correct them immediately to reflect the correct status.

  • Start repaying and clearing your loans

Irrespective of how you look at it, the big issue in the room must be addressed! All the outstanding loans must be paid to help you get a higher score. If you have several credits such as mortgage, car insurance, credit card loan, overdraft, and other loans, work out a plan to clear them. Though many find it difficult, it is still possible. Review all the loans and renegotiate with the lender where possible to get the minimal amounts of payments to make every month. Then, take the extra cash and clear the loan that has the lowest balance and move on to the next. Within a very short time, you will end up clearing all the loans and enjoy high credit rating because you did so.

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  • Consider alternative bad credit loans

If you need cash urgently, think of alternative sources of loans while working on raising your credit score. Consider applying for a secured loan, payday loans, or borrowing from friends. However, you should be careful with these alternatives because the interest is very high and could easily sink you deeper into debt.