Capitalism has wrecked us all; that’s a fact of life we may never escape! Families suffer constantly from financial instability due to economic changes; and, in most cases, their monthly salaries cannot cover their needed expenses. Due to such culminations of financial difficulties, many have resolved to seek financial assistance.
Consumers who deal with a lot of financial downfalls tend to suffer from poor credit history. In order to reach out to traditional sources for a loan, like banking services, you must conform to certain measures concerning credit history; leaving those with bad credit history with no alternatives. Yet, the market is still alive, and as long as the demand of a certain service is persisting, there’s always someone who’s willing to take the chance and provide!
The two possible options for fast cash for those with bad credit history are short-term loans and logbook loans. Some consumers get confused due to the massive marketing campaigns of lending services; and some might be quite oblivious to the difference between these types of loans. In this article, we review the terms of each type of loan and provide you with the proper knowledge to choose your loan in the way that is most adequate to your current financial situation:
- Difference in Terms of Service:
The major difference between a short-term loan and a logbook loan is the securing element that is required from you. A logbook loan provider lends you money in exchange for the technical repossession of your car; however, you still get to use your vehicle freely during the time of repayment. In case the clients refuses or is unable to provide a certain installment, the service provider gets to repossess your vehicle. The terms of the repossession differ from one company to another, and that’s why we tend to recommend Logbook Calculator, as their terms are known to be suitable for most clients.
Concerning short-term loans, each company requests certain documents of you to verify that you are fit for their loans. Most companies prefer if you are employed, so they may be assured that your income source should cover your repayment installments.
- Difference in Repayment Terms:
When it comes to short-term loans, there are usually two options: a payday loan and a regular short-term loan. Companies that deal in payday loans prefer to get their money back in a single installment. However, those that offer regular short-term loans usually give you the opportunity to repay your borrowed money over three months, in monthly installments, of course.
As most logbook loans offer bigger amounts of money, the terms of repayment differ than short-term loans. They are mostly in monthly installments; however, you need to go through the terms and rules of the company you are about to apply for before making your decision. Logbook loan providers know that their customers suffer from financial difficulties, and that’s why you would find many that provide you with suitable options that will ease the period of your repayment.
- Difference in Interest Rate:
There’s a rule that you should always consider: the longer it takes you to repay your debt, the higher the interest rate is going to be. It’s common sense. A payday loan might have the lowest rate of all options; but the downside of that type is that you need to repay your debt on a specific date that is agreed upon by you and the company. Short-term loans and logbook loans deal in several repayment installments, which can be beneficial for you to overcome your current financial difficulties, but the interest rates on both are higher. You need always to do a thorough research to find a company that provides you with the best deals.