How do tenant loans prove helpful in financial uncertainties?
In the current economic landscape, property ownership is just a dream. It affects the individual’s chances of securing immediate funds for emergencies. It is easier for the homeowners to get one as the loan provider shares the security of getting the money back. However, individual tenants living on rent struggle to guarantee the payments. It is the reason getting instant cash as a renter is challenging. Things take a worse turn under grim financials and low credit ratings.
However, options like tenant loans eliminate such hassle for renters. Now, new, or existing tenants can borrow funds to counter small cash needs without worries. Of course, you can get one as a non-homeowner. Moreover, you don’t need to provide any collateral to get one. Instead, you may qualify if you meet the basic affordability criteria. The blog discusses tenant loans in detail and how they may help you in financial distress.
What does a tenant loan imply?
A tenant loan is a financial facility for individuals renting a home but lack property ownership. The primary requirement to qualify is consistent income and a responsible credit history. It is an unsecured loan that does not require you to stake precious assets as collateral. It is the reason the interest rates stay generally competitive. You may get up to £5000 for your needs given the affordability condition. You can get one with a repayment term of 12 months. The installment stays fixed on the loan. It implies- you can budget for the payments without any surprises.
What do you need to qualify for tenant loans?
The criteria to get a loan as a tenant may differ slightly from getting a loan as a homeowner. Here is what you need to get tenant loans in the first attempt:
- You should have a consistent income to meet repayments
- You must have a bank with a direct debit facility
- You must meet the general criteria
- Individuals with a basic credit history of even 6 months may qualify
5 ways tenant loans may help you in financial distress
What could be better than financing needs individually? Tenant loans provide that flexibility and freedom to you. It helps you grab the cash by providing valid income proof. You can use the money for any critical and valid purpose without waiting for help. Here is how a tenant loan may help in financial distress:
1) Get money within 45 minutes
Getting cash help quickly by normal means is impossible. What if the person doesn’t return the call? What if the online payment gateways don’t work? How would you meet the critical needs? Here, fast, and easy tenant loans may help. You may get a loan online within 45 minutes. Even if the network does not work, check for an SMS loan. Yes, some loan providers also have that facility. You can use that to get urgent cash.
2) Can get one with a part-time income
Yes, you don’t need to be a full-time earner to qualify. Instead, a basic part-time income may help you get instant cash help. However, it should be a valid one to provide as proof. Identify your earning sources and provide one if the loan company asks for one. Only a few options help you get money against part-time income. Thus, you can leverage this facility without worries.
- Pay utility bills before the last due date
Yes, it can be challenging to save enough if you earn seasonally or bare minimum. It means compromising on some needs and rolling over important bills. The latter is not healthy for your finances. Thus, consider a tenant loan to pay the dues timely. You can get one if you have been living in the same place for over a year or two. It may turn out positive for you. Moreover, paying the bills timely helps you avoid penalties and late payment fees.
4) Bridge rental payments without hassle
Whether you are a student, self-employed, or a practitioner, you cannot save enough every time. Financial uncertainties and surprises may affect the budget. It means- you may fall back on rent payments as well. It could prove a serious problem especially if you are not on good terms with your landlord. Thus, it is better to avoid conflict of interest and pay timely. Don’t worry if you have not saved enough. Just bridge the amount you need with tenant loans.
Yes, you can legally do that. It is all about the affordability. You must be able to repay what you borrow. Analyse a flexible amount to get and repay the rent. If you struggle to understand the right amount, take the loan provider’s help. Most provide free consultancy and assistance to determine the right amount. It prevents you from paying extra interest by borrowing extra.
- Settle critical credit card payments
If your financial transaction covers 70% of credit card usage, then a tenant loan is your partner. A credit card debt is a high-interest debt. It means individuals with basic or low earnings may struggle to save enough. Rolling over a credit card debt is costlier than a personal loan. Thus, avoid this habit and repay the dues timely. Determine the total pending dues on credit cards. It is generally better to consolidate if you have like 8 pending payments. Alternatively, a tenant loan may help clear the basic credit card expenses up to £5000 immediately.
When do you need a guarantor on a tenant loan?
You are not always required to provide a guarantor on a tenant loan. However, a loan provider may ask for one if:
- You lack any income source
- You lack a basic credit history or credit report
- You don’t hold a valid bank account
- You depend on a guardian for financial assistance completely
- You don’t meet the basic eligibility criteria
Who can guarantee your loan payments on tenant loans?
You might be thinking- who can be a guarantor on a tenant loan? It is when the loan provider asks you to have one to qualify. Here are the basic eligibility criteria for a guarantor:
- He should be above 21 years old
- He must be a valid country citizen
- Should hold a relevant bank account with direct debit
- Should earn decent with limited debts in the profile
- Should have a detailed and comprehensive credit history
- Must have regular or high income to support payments
Bottom line
Thus, tenant loans help any person renting a house meet basic cash emergencies. You don’t need to rely on someone to help you. Instead, you can individually manage the needs with valid income proof. Any individual who meets the basic eligibility criteria may qualify. You can use the loan for any purpose. However, check and compare the interest and other costs before applying.
English
Arabic
Français
Português
Deutsch
Türkçe
Dutch
Italiano
Russian
Romaian