A look at top Logbook loan misconceptions


No doubt, a big number of people complaining about logbook loans are those with an excellent credit score who have never had to grapple with rejections when they badly needed cash urgently. However, those with bad credit vouch that logbook loans are a godsend, the perfect loan facility when they urgently need money. That said, in as much as logbook loans are beneficial, there exist a number of misconceptions regarding them. Some of these misconceptions include:

Logbook loans are exorbitant and unaffordable

It goes without saying that all types of loans accumulate some form of interest and logbook loans are not an exception. However, to say that logbook loans are the most expensive would be an exaggeration and a fallacy. Payday loans are more expensive than logbook loans. While logbook loans have an average APR of 400%, the average APR of payday loans is 1000% which in essence makes logbook loans relatively cheaper.

You need to be in employment to be considered for a logbook loan

This is purely a misconception as you can avail a logbook loan so long as you provide proof of income. It’s not a must that you be employed and receiving a payslip. Even those who are self-employed or working part-time can be considered for a logbook loan. In other words, if you can show proof of your capability to repay through the provision of bank statements, you will be able to avail a loan even if you are not in full-time employment.


Logbook loan lenders are just sharks waiting to pounce on you on the first default

This is not true and simply a misconception. The truth of the matter is that most logbook loan lenders resort to car repossession as a measure of last resort. Don’t avoid calls or go underground when you experience problems repaying your loans. Simply talk to your lender and come to an agreement on how payments will be made moving forward in the reflection of your current financial circumstances.

Logbook loan repayments take a long period of time

No doubt, logbook loans have a longer repayment period compared to payday loans. However, the period of repayment is entirely up to the borrower and not the lender. You can actually repay your loan earlier if you wish to.


Only a car is accepted as collateral

There is no written rule requiring that only individuals owning a car can be considered for a logbook loan. Even those owning a motorcycle, a lorry, a van or even a truck are eligible to apply for a logbook loan. However, applicants can only avail an amount equal to half the value of their car according to prevailing market rates. If you are keen on learning about logbook eligibility rules and documentations required, be sure to read detailed information from this source.

What are the advantages of enlisting the services of a credit repair company?


A sizable number of individuals with a poor credit rating prefer to restore their rating on their own. The number one reason they cite for this is that credit repair is an expensive undertaking when a credit repair agency is involved. What most people don’t realise is that this is just an exaggerated belief and that enlisting the services of a credit repair agency may be less costly and more beneficial than they think. For instance, paying a credit repair professional a monthly fee goes a long way in ensuring that you don’t pay exorbitant interest rates in the foreseeable future when applying for a loan facility or a mobile phone contract. That said, what are some of the advantages of enlisting the services of a credit repair company?



They understand the law

As professionals working in the credit restoration industry, they are up to date with various laws governing credit repair and are therefore better placed to handle the whole process professionally and within the law. The credit repair company will leverage the laws in your favour, operate within the set industry standards and operations and ensure that the whole process is done professionally and in accordance with the laws of the land. The same cannot be said of a person who chooses to restore credit rating on their own!

A credit repair company takes charge

Working with credit bureaus as well as creditors can be tiresome not to mention involved especially when you want to resolve a number of issues. By enlisting the services of a credit repair agency, they basically take charge of working with credit bureaus as well as creditors and resolve any outstanding issues on your behalf. You simply sit back and let the professionals handle everything.

You save time

When you hire a credit repair company, you save a lot of time you would have used running up and down to meet and reason with creditors and what not. A credit repair agency will handle everything on your behalf while you focus on other interesting aspects of your life. They are responsible for reviewing your credit report, drafting letters, making appointments, doing follow ups just to mention but a few while you wait to see the results. Your personal time is therefore freed up and you can use it on other important tasks.


In a nutshell, enlisting the services of a credit repair company ensures that you enjoy long-term benefits. You will in the future enjoy faster loan approvals, lower interest rates and ultimately, peace of mind!

Factors to consider before hiring a credit repair company


One thing we can’t run away from is the fact that the state of your credit score can positively or negatively impact your future investment plans. A bad credit history means a high probability of rejection when applying for a loan facility or a mobile phone contract. It also means that you will have to deal with high-interest rates not to mention the possibility of being locked in a contract for a prolonged period of time. It is no wonder then that most UK citizens with a poor credit rating are increasingly looking for ways through which they can improve it.

Though a good number of them try to fix their credit scores on their own, it is highly recommended that they enlist the help and professional services of credit repair companies or agencies. The agencies are up to date with what’s happening in the industry, any changes that have been effected and also have the resources to improve your credit score in the shortest time possible. That said, what are some of the factors that you need to take into consideration before you enlist the services of a credit repair company?



A good reputation is priceless. Before you hire a credit repair company, find out whether it has a good reputation, adheres to best business practices, continuous improvement, and customer satisfaction. A credit repair company with a solid reputation instills confidence and gives you peace of mind in the knowledge that professionals are in charge of your credit score restoration.


It will do you good to go for a credit repair company that has been around for a couple of years with proven results than to go for one that just opened shop with nothing to show. Experience matters when choosing a credit repair company as you wouldn’t want to gamble and hope for the best. Go for a reputable company boasting of a number of years in experience as they are better placed to restore your credit score professionally and in the fastest time possible.


Fee arrangement type

Granted, different credit repair companies have different types of fee arrangements. There are those who advocate for a “pay for removal” program while there are those that simply charge a predetermined fee monthly. As regards to  a pay for removal program, a credit repair company will only charge you for every single negative item removed from your credit report. The only downside with this arrangement is that there are cases where the removed item reappears after 2 or 3 months yet you had already paid for it. This might happen because of a number of reasons. You therefore, need to ask your credit repair company beforehand whether they will remove the item that reappears again or whether they will refund the money you had earlier paid. As regards the monthly payment program, it’s instrumental that you ask upfront how many months it will take to repair your credit report and the amount of money it will cost. Any credit repair company quoting you for a period longer than six months is without a doubt taking you for a ride.


Before making your decision, it is important that you ask for references from past customers who have had their credit rating restored. This shows you how competent and professional the credit repair company is. In situations where a given credit repair cannot divulge information citing confidentiality, ask for attorney references whom they work with that can vouch and affirm that they are indeed legitimate and up to the task.


Go for a credit repair company that has your best interests at heart. The said company should be committed to restoring your credit score in the earliest time possible and keen on delivering the best possible results.

Credit repair: sure-fire ways to rebuild your credit score

In as much as you might be having legitimate excuses as to why you missed a payment or two in the past, lenders usually are not in the mood to hear your excuses. To them, you only have two options – their way or the highway. A lot of people with a poor credit rating have had to contend with rejections or high-interest rates because of a poor credit rating. In light of this, credit repair should be uppermost in your mind. You definitely do not want to suffer high rejection rates or deal with exorbitant interest rates for the rest of your life. So how can you go about rebuilding your credit score?

Never ever miss making a single payment

The reason you are in a mess right now and your credit score is in poor shape is because of missed payments in the past. As such, if you are keen on rebuilding or repairing your credit score, you should make sure that you pay all your dues on time without defaulting. Late payments negatively affect your credit score. Timely repayments show that you are reliable, trustworthy and diligent in meeting your obligations. Some of the strategies you can utilise to make sure you never miss a payment include setting up an automatic payment with your bank, setting reminder alerts on your phone or organising to be sent reminder emails every time your bill is due. Over a period of time, you will be able to positively impact your credit score.

Keep open your older credit card accounts

If you have an older credit account with a good credit history, it is advisable that you keep it active rather than closing it. The moment you close a good credit card account with a good credit history, it means that after a period of 10 years, the history will be deleted and there won’t be a trace of it on your credit report. Keeping older accounts active will therefore go a long way in helping your efforts to rebuild your credit score. In other words, don’t close good old credit accounts but rather keep them live!

Drastically reduce debt on revolving credit accounts

What most people are unaware of is the fact that lenders not only look at a person’s credit score but also keenly analyse a person’s utilization ratio. To put it into perspective, if you owe a sum of £5000 on a given credit card whose credit limit is around £10000. It means that you have in essence utilized up to 50% of your available credit. In other words, you have a 50% utilization rate which lenders find to be very high and which could in essence hurt your credit rating. As such, you should endeavour to reduce your utilization to below 30% on all your revolving credit accounts. Simply charge on your credit card what you are capable of repaying on a monthly basis without straining your finances.


Audit your credit report accounts

At times, your credit rating could be poor because of errors and incorrect entries. A lot of people are not privy to the fact that they can access their credit report for free once a year. In other words, you could actually check your credit report say every 3 or 4 months from a different bureau and ascertain whether the information contained therein is correct and factual.