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Jun 29

Logbook loans vs. Payday loans - The battle of the same day cash loans

Posted by:Samantha Peterson

Many people find themselves in a situation whereby they need to get their hands on cash as soon as possible. In these instances they begin looking for same day cash loans. They are met with a wealth of different options to choose from. Two of the main same day cash lending solutions are logbook loans and payday loans. This post will take a look at both of them in further detail – providing information on what they are and the benefits associated with both. This should help you to determine what option is the best for your needs specifically. Thus, keeping that in mind, read on to discover more...

So, let’s begin by revealing what each type of loan actually is. A payday loan is a lending option that has received a lot of attention over the past few years. If you turn on the television you are likely to see many adverts for this type of loan, but what is it? Essentially, you are able to borrow a small sum of money to tide you over until payday. Thus, you can typically borrow several hundred pounds typically for a period of two to four weeks.

A logbook loan is still a short term lending solution, however, it usually offers you a lot longer to pay back the money than a payday loan does. In fact, companies will give you months and even several years to pay back the money you owe. This type of loan is actually a loan secured against your vehicle. However, you will not need to hand your car over, only your vehicle’s logbook. If you fail to make the repayments, the company has the right to seize your vehicle. Moreover, it is worth noting that you will typically be able to borrow up to 70 per cent of your car’s current worth.

So, which loan is better? Well, it all depends on your situation and what you are looking for. As touched upon, logbook loans are certainly a lot more flexible, as you have the ability to borrow a greater amount of money for a longer period of time. Another advantage associated with this type of loan is the fact that a wide scope of applicants is considered. Those with a bad credit history, or no credit history at all, may be considered. Of course this does not mean their application will be accepted. Nonetheless, it is still an evident benefit.

On the other hand, payday loans are ideal for individuals who have a bill they need to pay immediately yet have no money to pay it with until payday. Or, perhaps you have had an unexpected expense that you aren’t able to deal with for a few weeks. This is a possible short-term solution to tide you over until your wages are paid into your bank account.

All in all, when it comes to the battle between payday loans and logbook loans there is no clear-cut winner. It is all about finding what works for you specifically. Think about your current financial needs and determine the solution that is going to be the most effective.

Summary – This post reveals the differences between two of the main same day cash loans. These are of course logbook loans and payday loans. Find out which one is the better option.

Author bio – Samantha Peterson has been a qualified journalist for 25 years. She currently provides content relating to money advice and other similar topics, such as same day cash loans.

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350.5%APR Representative
Representative example: Loan amount £1000. Duration 18 months. Repayable by 16 monthly repayments of £170.42 and one of £198.42 (includes Bill of Sale registration fee of £28) commencing two months from the date of the loan. Total amount repayable £2925.14. Rate of interest 187% per annum fixed. Representative 350.5%APR. LOANS ARE SECURED ON YOUR CAR. The vehicle may be repossessed if you do not keep up the repayments.