Tag Archives: tenants

Tenants Sought For Bad Credit Tenant Loans Now

There has been a plethora of news lately about homeowners who are struggling to pay their mortgages, but what about renters and tenants who do not have the luxury of owning their own homes? In most cities across the United States, lease or rent payments that must be made by tenants and renters is equal to or in many cases, more than the cost of the mortgage on a fine home. Rent as much as $2000 is not always easy to come up with in the current economy, and these tenants will never have the satisfaction of calling the place that they rent or lease their asset.

If you are a tenant, you are well aware that if you do not have the money to pay your rent, you are subject to a speedy eviction, unlike those with a mortgage in arrears who are afforded the courtesy of negotiating with the mortgage holder before they are forced out onto the streets. To add insult to injury, tenants often have lower credit ratings and do not qualify to borrow the money they need to help them stay afloat during these uncertain. There is hope, however. If you are a tenant, you are being sought as a borrower for a bad credit tenant loan to help you pay your monthly bills, rent, and other needs.

Tenant Loans Help Cover Expenses

There are lending companies who specifically write bad credit tenant loans, tailor made products that are designed to allow tenants with less than ideal credit histories a chance to borrow the money they need. Those who are eligible to take out a bad credit tenant loan include individuals and families who do not own the residence in which they reside, or that live with their parents, relatives, or friends. You can use your bad credit tenant loan to help you meet the expenses involved in maintaining your residence, such as utility payments, electricity, water, and other expenses.

Your bad credit tenant loan can also be used to make major purchases, like furniture, appliances, or even a vehicle. Many borrowers of bad credit tenant loans use their proceeds to pay for education or even take a long-dreamed-of vacation. Regardless of what need you might have for a bad credit tenant loan, there is a lender out there who is willing to offer you a tenant loan with favorable terms to fit your budget.

Types Of Tenant Loans

Most bad credit tenant loans are written out as a type of unsecured personal loan, although there is a secured version of the tenant loan available for those who have some type of asset that is acceptable to the lender to pledge as collateral. The unsecured bad credit tenant loan does not require that you pledge assets to secure your loan, making it a signature only loan.

Many borrowers of these types of the unsecured tenant loan also choose to apply for their loan with a cosigner who agrees to make their tenant loan payments if they should fail to do so for any reason. You can choose to apply with or without a cosigner. If you apply with a cosigner, your cosigner should have good credit and adequate income to repay the lender if necessary. The tenant loan that is written in an unsecured version costs more in terms of interest than the secured tenant loan, but is often the only choice for tenants who own no assets of worth.

Saving Money On Your Tenant Loan

Saving money on your bad credit tenant loan is easy if you use an online tenant loan servicer to process your tenant loan application. Many online lenders offer bad credit tenant loans in amounts as high as $5,000 and also feature a greater rate of approval than your neighborhood lending institution or bank.

Unsecured loans for tenants – The only option for non-homeowners

Tenants (council tenants, housing association tenants, private property tenants or folks living with their parents like student) are people who do not have their own house or residential property and live in somebody else’s house. As tenants are incapable of pledging collateral, the only option left for them is unsecured loans. Though primarily designed for tenants, these loans can also be availed by homeowners or property owners, as they may not be willing to get into property related legalities or risk his property for a small amount.

It is a known fact that homeowners or property owners can easily take advantage of their assets to get favourable loan deals like quick attention, high credit limit, competitive low APR, flexible payback terms and negotiable loan conditions. However, tenants miss out on most of that. Typically, unsecured loans for tenants are a bit expensive – low credit limit, comparatively high APR, fixed payback terms and non-negotiable loan conditions. However, these loans have other advantages that are not there with secured loans like:

  • No collateral – no deposit against the loan amount
  • Less paperwork – no red tape
  • Quick service – fast loan processing
  • No immediate risks in the event of repeated defaults or non-repayment

    Unsecured loans for tenants are also ideal for people who have small monetary requirements, as offering collateral may not be necessary and for people who have urgent needs, as getting into lengthy property evaluation procedures may not be feasible.

    These loans can be used for a variety low credit requirements – new or used car purchase, education or career development plans, wedding expenses, home improvement plans, vacation and holiday season expenses, business requirements, debt consolidation, bad credit, etc. As with most loans, unsecured loans for tenants too have basic eligibility criteria. A person applying for this loan should:

  • Have a savings account in the UK to which he makes regular payments
  • Be in a full time employment
  • Have lived at his current address for over a year
  • Have made regular rent payments (not applicable in case of those living with their parents)

    Please note: The basic criteria to avail an unsecured loan for tenant is – credit history and DTI ratio. In addition, the APR may vary according to the type and amount of loan required, and desired payback scheme and period. Generally, an unsecured loan for tenant has an amount range of £500 to £15,000; an APR range of 7.4% to 41 % Variable (typical rate is 19.9% APR Variable) and a compensation term up to 10 years. A typical unsecured loan for tenants deal may look like:

  • Amount borrowed & 8594; £5,000
  • Payback duration & 8594; over 60 months
  • APR (Average Percentage Rate) & 8594; 8.3%
  • EMI (Estimated Monthly Instalment) & 8594; £101.59
  • Total payback amount & 8594; £6,094.94