Logbook Loans or Payday Loans?

When people first start looking for a no credit check loan online they might get feel bombarded by a huge number of websites, lenders and brokers.  Not to mention a large amount of websites that simply look like scams or have a dodgy feel about them.  One of the more specific decisions to be made is to decide between payday loans or a logbook loans.  They appear similar on the surface but there are several crucial differences between the two forms of no credit check loan.

*Use our quick comparison below or visit our home page for full comparison!

	Lender	Debit Card	Loan Amount	Interest	Documents	Apply
3.	Payday UK	Not Required	£80 - £750	£25 per £100	Not Required	PROCEED
2.	Quick Quid	Not Required	£100 - £150	£14.75 per £50	Not Required	PROCEED
4.	Payday Express	Required	£80 - £800	£25 per £100	Not Required	PROCEED
1.	Payday Bank	Not Required	£80 - £750	£25 per £100	Not Required	PROCEED
5.	Purple Payday	Not Required	£100 - £750	£25 per £100	Not Required	PROCEED

This article will first look at the similarities between the two most popular forms of bad credit loans and then go on to list the differences.  Some of these may be obvious to readers who have done some research online, but some things are more subtle and may effect the decision made by the potential borrower.

Similarities between log book loans and payday loans

1. Both types of loan are no credit check loans.
2. Lenders of both types of loan will lend money to borrowers with very bad credit or who have been refused by other lenders in the past
3. Borrowers can make the initial application online for both logbook loans and payday loans.
4. Both have higher APR rates than mainstream lenders which reflects the fact that they lend to lenders with very bad credit who are seen as a bigger risk.
5. Log book loans and payday loans are both often seen as fringe financial products and not part of the mainstream lending industry.  This also includes some people having a bad opinion of the industry as a whole.
6. You need to be aUKcitizen over 18 years old to borrow money.

Differences between logbook loans and payday loans

1. With a logbook loan your loan is secured on your vehicle.  This means that you may lose your car if you fail to repay the loan.  However the borrower keeps full use of the car during the loan period.  With payday loans the lender makes sure that the borrower can repay the loan i.e. has an income and then issues unsecured loans rather than secured loans like logbook lenders.
2. You can borrow larger amounts of money with logbook loans than payday loans.  This is because they are car secured loan, meaning that a borrower can take as much money as he or she wants as long as the value of their vehicle covers the loan amount.  Lenders often lend half the market of value of the vehicle.  Payday loans tend to be loans of less than a £1,000, whereas logbook loans may go as high as £50,000 if an expensive vehicle is used as collateral.
3. Logbook loans have a lower APR than payday loans.  This is because they are car secured loans, but also because the loan period is usually much longer.  Whereas a payday loan is taken out for a month at a time – until payday – a logbook loan might have an 18 month repayment period.
4. There are far more payday loans lenders available to choose from than logbook loans lenders in the UK at this time.

Related posts:

1. Very Bad Credit and Logbook Loans

Tags: log book loans, logbook loan, logbook loans, Payday Loans