I got myself recently the same OnGurad Mini U-Lock, my bike has a front basket so is ok to carry it there. But when I commute sometimes bu bus I have to take the cable out of the basket just in case it won't fall off if the bus hits a bump or something. I find it a little uncomfortable cause sometimes I find myself as well having to keep the cable on my bag.

Today though, I had to carry stuff in my basket, my bag pack was full and then I figure to wrap it up with the Velcro as usual and hang it on the handlebar making sure it wont interfere with anything else. It work...so that is the only way I figure out how to fix the problem.

Good Luck....