There are many different types of same day cash loans available nowadays. These are ideal for those that require quick cash and are often preferred to the conventional methods of lending money. The two main types of same day loans are as follows; logbook loans and payday loans. This article aims to provide you with knowledge regarding the difference between the two and how to determine what option is the best for your needs specifically.
What is the difference between a logbook loan and a payday loan?
Let’s first begin by defining what each type of loan actually is. A logbook loan is one that is secured against your vehicle. You will be able to borrow a percentage of your car’s worth. This is typically set at 70 per cent. On the other hand, a payday loan is a short term solution that has been designed to provide financial aid for a month maximum. In fact, most payday loans are set at an approximate period of two weeks. It is not a case of one type of loan being better than the other. It all depends on the individual and what they hope to gain from lending money. Thus, let’s take a look at some of the benefits…
What are the benefits of a logbook loan?
A logbook loan offers many benefits. One of the main reasons why people go down this route is because those with a bad credit history may still be considered. Thus, those who are certainties to get turned away from the banks still have a chance. In addition to this, you also benefit from an easy application and one of the main reasons why this is the case is because little documentation is required. All you need is proof of your income. Aside from this you probably won’t be asked for anything else except a form of identification and probably a recent utility bill as well. Aside from this, flexible repayments really draw in the customers because they know they have a longer period of time to pay the same day loan back.
What are the benefits of a payday loan?
A payday loan is evidently the best option to go for when you are in desperate need of cash today. The sheer fact that these loans have been designed for a two week period shows that there is no margin for time to be wasted. Nevertheless, this is not the only reason why payday loans are popular. Whilst logbook loans are good for those who require money over an extended period of time, payday loans are those who need a little bit of cash to help out because of an outstanding bill or any other small type of financial necessity. The application form for this type of loan is typically easy and simple as well.
When you take all of the points into account it is not hard to see why determining whether you want a logbook loan or a payday loan is so important. Both have their benefits however a logbook loan is slightly more long term whereas a payday loan is the complete opposite and is thus better situated to life’s little unexpected emergencies.
If you are in need of quick cash there are thankfully various different same day cash loans for you to select from. But which is the best option? Should you go for a logbook loan? Or, how about a payday loan instead? This article delves deeper into both choices.