Compare quick cash logbook loan – Is APR the best way to choose?
Today there seem to be so many companies offering quick cash logbook loans. How can you choose between them? Surely one loan is as good as another? So, the logical thing to do is to find the one with the lowest APR because that will be the best deal, right?
When comparing specific types of loans – for example quick cash logbook loans – it is NOT just the APR that you need to look at. Let’s take a look at what APR is and why it can sometimes be misleading.
APR stands for Annual Percentage Rate. It is the annual rate of interest charged for borrowing. The percentage figure represents the actual cost per year of your loan over the term of that loan, so you should always look at the APR in conjunction with the length of the term of the loan.
Let’s look at a couple of examples:
Car Cash Point quote on their website April 2017 a representative APR of 230.70%. For a £1,000 loan over 36 months this would equate to a total charge for credit of £2,880.00, meaning that you will pay back £3,880.
Car Cash Point’s Prestige Vintage offering seems to be good value at a representative APR of 113.3% APR , but if you borrowed £1000 at this rate over 5 years the total charge for credit will be £3,000.41 meaning that you will pay back £4,000.41.
At Logbook Loans we find that our most popular loan term is 18 months. If you borrow £1,000 from us over this time period you would pay back £2,980. Even though our representative APR is higher than the above examples at 450.5% your repayment would be £900 cheaper and you would repay your loan in half the time!
However, the story doesn’t end there. We are living in days where good customer service is increasingly important, and there is no reason why there should not also be this expectation of the financial services industry. Many customers are embarrassed to apply for a loan and think that they will be looked down upon or treated badly for doing so by banks and other financial institutions. But at Logbook Loans we believe that good UX (User Experience) should be part of the package!
So as well as comparing APRs and loan repayment terms, also choose a lender that will treat you with the respect you deserve throughout the loan process. Also be careful to read the small print as the saying goes. Make sure that you find out:
- whether there is any charge for setting up the loan
- whether there is any penalty should you decide to repay the loan early
- whether you will be charged a fee if you make a late repayment
At Logbook Loans we do not charge any set up fees as we are a direct lender, not a broker. You can settle at any point.
Above all, at Logbook Loans we value each and every customer. So, if you are aged 18 or over and want to make an application for a quick cash logbook loan with Logbook Loans then call us on 0330 400 4137 or enquire online today!