Motoloan Blog 11 May 2015
What Makes A Logbook Loan A Better Option Than A Payday Loan?
Payday loans get a lot of bad press, and frankly it’s no surprise. Borrowing even a small amount of cash for a short time can cost an absolute fortune.
Yes, there are legitimate reasons for needed cash fast, and this can be one of the major deciding factors for people taking on a payday loan. However, is £400 within 5 minutes really worth the £60.80 it would cost you to repay it just 19 days later? This is what it would cost you to repay the cash, based on Wonga’s current interest rates of 1,509% APR (11th May 2015). Pay it back in 30 days and it’ll cost you £96 in interest. It’s an extremely expensive way to borrow money.
Lots of people lump logbook loans into the same expensive bracket as payday loans, however this simply isn’t the case. Logbook loans are considerably cheaper than payday loans and enable borrowers to repay cash over a longer timeframe – check out our FAQs for more information. Because your loan is secured against your vehicle we conduct proper checks such as a standard credit check. This isn’t something you should worry about though; it is simply a way to ensure you are able to repay the loan, which prevents you getting in difficulties in the future.
Motoloan’s fair and ethical lending
At Motoloan our aim is to deliver a fair and ethical approach to lending. A loan from us will give you the cash you need more quickly than other routes such as approaching your bank and enables those with a less than sparkling credit rating to access the extra cash they require.
We lend up to 70 per cent of the vehicle’s trade value, unlike others in our field who only offer around 50 per cent. Plus, to ensure you get a true to market valuation of your vehicle we use a number of car database systems to determine its worth, and the amount you are able to borrow.
Our fairer lending scheme still allows you to access cash paid into your account the same day your application is approved. However, we care about our customers. It’s our fairer deal that has enabled us to gain an excellent five star status on TrustPilot. Check it out for yourself.
Apply today using our online form and we’ll call you right back.