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Feb 26

What is the difference between a loan against car and a payday loan?

Posted by:AutoMoney

Lending via conventional methods is not possible for a lot of people. Banks and other financial institutions seem to have extremely stringent criteria, and thus as a result some of the most credible individuals can struggle to be accepted for a loan. Nonetheless, it is not all doom and gloom because there are various different options available. Two of these are payday loans and logbook loans. This post reveals the difference between the two so that you can decide which one is going to be the best for your needs specifically.

Let’s begin with a logbook loan. This is a loan against car. You will be able to borrow up to a percentage of your vehicle’s current worth; usually this is 70 per cent. The company will not take your car, however you will need to hand over you car’s logbook – as you may have gathered by the name. This is a flexible type of loan, as you can typically borrow anything from as little as £250 to as much as £5,000.

Flexibility is not the only benefit associated with a logbook loan. In addition to this, there are many companies who promise to deposit the money in your bank as soon as your application has been approved. This means you can sometimes benefit from a same day cash loan. In addition to this, if you have a bad credit history you can still apply. This does not mean your application will definitely be accepted. Nonetheless, there is a chance that it will be.

Now you know what a logbook loan is, but what about a payday loan? This is a short-term solution for those who are in need of some emergency cash in order to help them until payday. Most payday loans are offered for a time frame of approximately two weeks. This shows an evident difference between a payday loan and a logbook loan, as the latter can be offered for many months and sometimes even a couple of years.

What are the benefits associated with a payday loan? Well, these loans are perfect for those little emergencies. Are you in danger of having your electricity cut off? Perhaps you have an outstanding phone bill? Situations like this are when payday loans really show their worth. They are quick and easy and the eligibility criterion is not as stringent as conventional lending methods are. There are also many companies offering payday loans nowadays, thus you are bound to find one to suit your needs.

So there you have it, all you need to know about two of the most popular lending methods in the current day – payday loans and logbook loans. Hopefully you can now see the clear differences between the two and determine which one is going to be best for you. There is no right or wrong. It is all about finding a lending option that matches in with your situation.

Summary – There are many different borrowing options available nowadays. This can often lead to a lot of confusion. This article explains the difference between a loan against car and a payday loan.

Borrow with confidence

Borrow with confidence

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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.