Four Hidden Tricks to Use When Working With Logbook Loan Companies
Logbook companies in the UK have become a crucial source of funds to many people whose credit application from banks are declined. However, most of the people end up falling deeper into financial trouble because of high-interest rate and strict repayment conditions. In fact, the logbook loan need not be a financial trap if you apply the following financial tricks.
Make your lender a close friend
While the logbook loan lender is the option of the last resort, there is no need of making him your enemy. Unlike it is commonly thought, most logbook companies are friendly and willing to assist their clients in addressing any challenge. In the event of a challenge, the companies step in to assist clients to address them and continue with repayment. However, it is important to start by making the lender your close friend.
Do not simply hide from the lender because the salary was late with a few weeks. Ensure to regularly communicate with the lender, discuss any challenges, and have him build the trust in you. If you have a new repayment plan or alternative source of income that will ease the repayment, do not hesitate to share the details with the lender. By the end of the day, the logbook loan lender wants to have a highly satisfied client to grow the business.
Ensure to draw a loan strategy for smooth repayment
The most important trick when taking a logbook loan has a good repayment strategy. In many cases, people looking for logbook loans are also having additional credits that require regular payment. Therefore, a repayment plan does not simply work on clearing the logbook loan only, but the entire debt burden.
When drawing a debt clearance plan, it is crucial to give preference to high-risk credit such as logbook loans. One of the best strategies is allocating the minimum monthly payment allowed for every loan and directing the extra cash to clearing the logbook loan. You could also adopt austerity measures in personal lifestyle to release more cash towards clearing the logbook loan.
Ensure to scrutinize the loan agreement before signing the loan
When signing for a logbook loan, many people rarely scrutinize all the details. However, this is a serious trap that often makes the repayment path murky a few months down the line. For example, some agreements attach serious penalties for borrowers who pay the loan before time. However, this should be appreciated as opposed to getting penalized. By scrutinizing the agreement before signing the loan, you can identify such punitive sections of the agreement and have them removed or adjusted.
Start working on raising the credit rating
The ultimate target after getting a logbook loan is raising the personal credit score. Your efforts to raise the credit rating will help you get access to cheaper credit from banks and other services such as phone credit. Some of the top strategies for raising the credit rating include correcting errors in the credit report, paying bills on time, and clearing the outstanding loans.