Logbooks may be accessible and easy to avail but it’s not cheap. In fact, it comes with a hefty price in exchange for the convenience. If you’ve exhausted other financing options to no avail and you’re left with logbook loans for last resort, you’ll just need to make sure that you find the most affordable logbook loan deal. To help you look for the right deal, here are things to keep in mind.
When comparing logbook loans, one of the key factors to take into account is the APR. Lenders advertise deals with a representative APR, which also means average percentage rate. The known average APR for logbook loans is 400%. With competition getting stiffer, however, more and more lenders are now offering deals with below said average. If you want the cheapest deals, it makes sense to look for deals with the lowest advertised APRs.
Remember that APR is one factor when comparing deals. Don’t stop with looking for the cheapest APR. You’ll also need to consider your lender’s reputation. Just because one lender advertises the lowest APR doesn’t mean it’s the best deal. Make sure your lender has a solid track record to ensure that you’re really getting the best end of the deal. Read user reviews or seek recommendations to find the best lender with a stellar reputation.
Just as important as the APR is the hidden fees added to your logbook loan. Some lenders may spike your loan’s cost with hidden fees. Make sure you’re aware of all associated fees and charges to avoid getting duped. Before you seal off any deal, take time to read the small print. Information on hidden fees is usually detailed on the small print. You may also ask your lender directly for such information. If the lender refuse to disclose details on hidden fees, you’re better off looking for another lender.