Mar 31

It is a fact of life that banks and other lenders are less inclined to loan money to people who do not have a home. After all, for most people, their home is their biggest asset, the place with the most equity stored in it. So, when you are merely a tenant, what can you do in the event you need money? Well, there are lenders who handle what are known as tenant loans.

Finding Tenant Loans

Step one is to do a search for firms that offer tenant loans. The Internet is the best place to find them; most of your local banks will probably not be inclined to offer such a loan. So, use a search engine like Yahoo or Google, and get a list of possible companies. Next, look over some of the sites and see what they offer. In many cases, they do not just offer a simple tenant loan. No, they will have services such as an unsecured loan for a tenant, an adverse credit tenant loan, a poor credit tenant loan, a bad credit tenant personal loan, a best tenant loan, a cheap loan for a tenant, and so forth. Some of these firms have literally more than twenty different types of tenant loans available!

What Information is Needed?

Once you have reviewed a couple of the websites, look at what sort of information each requires you to submit. Next, gather all of that information, go to the sites you think are best, and file an application on each one. Now, do not worry that you are going to be suddenly saddled with half a dozen loans! Nothing happens until you review the terms of each loan, and then decide on which one you want to accept. Before you do so, be sure to thoroughly check over the terms and conditions of the loan. After all, with some tenant loans, the interest rate can be high. So, review all of the offers you get, and then select the one best for you.

Advantages of Tenant Loans

In general, tenant loans do have a number of advantages over a standard bank loan. First off, you can submit your information and get a loan quote, and it is free and there is no obligation to you. Next, there is very little paperwork. If you have ever bought and house and signed all the documents involved in that process, you will appreciate a minimal “paper trail” financial arrangement. Then there is the speed of tenant loans. Usually, the lender can make a decision about making you an offer in as little as twenty-four hours. If you have a great need for quick cash, tenant loans can be a lifesaver for you! Finally, there is that old saying about banks not lending money to people who really need it. If you have had some financial troubles in the past, it may be very tough for you to get a bank loan. With tenant loans, they are willing to take a chance on someone with less than perfect credit.

Disadvantages of Tenant Loans

Now, bear in mind, that can mean having a slightly higher than normal interest rate. However, you must weigh all your options. If you have a real need for quick cash, and you know that you will have the income to cover the monthly payments; then getting a tenant loan can work out perfectly for you. It is like anything else in life. Look at the offer, consider your alternatives, review your finances carefully, and do not necessarily take the first offer made to you. There is nothing wrong with shopping around for the best deal. Once you find some good tenant loans, select the one best suited to meet your needs.

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Mar 06

Just incase you haven’t heard of them, lenders in the U.K. are now offering tenant loans. A tenant loan is an unsecured loan which you can qualify for if you live in rented accommodation, are a council tenant, are a tied tenant, or are living with your parents.

Generally, tenant loans are available for loan amounts between £1,000 and £25,000, with interest rates which are generally as low as 6.5% and go up from there. The interest rate you will qualify for depends entirely on your credit history and credit score. If you have a good credit score, then your cost to borrow money through a tenant loan will be a lot less than if you have bad credit, just as with nearly any other type of loan.

Debt Consolidation with a Tenant Loan

One of the most common uses for a tenant loan is to consolidate higher interest credit card debt. By obtaining a tenant loan you can use it to pay off all of your high interest credit card debt and be left with one monthly payment on a debt with a lower interest rate.

For example, assume for a moment that you have the following debt:

• VISA @ 17% interest with a balance of £1,000
• VISA @ 15% interest with a balance of £1,000
• MasterCard @ 17% interest with a balance of £1,000
• MasterCard @ 23% interest with a balance of £1,000

Rather than make four monthly payments on your £4,000 debt, you could obtain a tenant loan for the £4,000 and have one monthly payment. Additionally, if you have good credit then you could likely get a tenant loan with interest in the 6.5-11% range. This lower interest rate will help you to pay off your debt sooner and at much less overall cost to you.

Purchase a Car with a Tenant Loan

Another popular use for a tenant loan is to purchase a vehicle. If you are interested in purchasing a used car from a private individual, using a tenant loan can be a good way to finance your vehicle purchase. Additionally, if you have a good credit score you can sometimes get a better interest rate on a tenant loan than on an automobile loan to purchase a new car from a car dealership.

No matter what the use of your tenant loan, to consolidate debt or pay for a vehicle, by shopping around on the Internet you can get the best deal possible.

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