A poor credit history means that the majority of financial institutions won’t lend money. An unsecured tenant loan for bad credit allows non-homeowners to borrow money with no collateral. Not only that, a guaranteed tenant loan also involves no credit checks at any stage of the application process. In order to get approval, a different set of lending criteria need to be met. The emphasis is on proof of identity and demonstrating that a quick cash advance is affordable to the customer.
Where to Get An Unsecured Tenant Loan for Bad Credit
- Payday lenders. Get approval for a bad credit payday loan for up $1,000 with no credit scoring. Poor credit loans are available for a month.
- Credit unions. Subject to affordability, it is possible to get no collateral loans for poor credit. A credit union loan is only available for people who are members. It is possible to become a member based on a shared interest, such as employment, religion or locality.
- Credit card cash advance. A pre-determined percentage of the available credit limit can be withdrawn from an ATM machine. The Annual Percentage Rate (APR) will be slightly higher, but it is less expensive than a payday cash advance loan.
- Family loan. Borrow money cheaply from a friend or family member.
How to Get Approval for an Unsecured Loan for Tenants
- A citizen of the country where the application is made.
- A minimum of 18-years of age.
- Must have a full-time job that pays a minimum of $1,000 per month. In the case of credit union loans, affordability must also be demonstrated.
- Provide two forms of identification, one of which must be photo I.D.
- Have a valid checking or bank account.
The Cost of a Guaranteed Tenant Loan
A fast cash advance for $750 will typically accrue $187.50 of interest in just 30 days. Bad credit loans for tenants are more expensive than a bank loan because there are no credit checks. This means that the risk of the customer defaulting on the loan is very high. Credit unions and payday lenders regularly offer fast cash loans to customers who have already been rejected by the banks. The other reason that guaranteed tenant loans cost more is the short timeframe combined with the high administrative costs.
How Long Does it Take to Receive a Guaranteed Loan for Tenants?
Provided the application is received before 2.30 PM, payday lenders perform an immediate bank transfer so the money arrives the same day. If the request is submitted after this time, it will arrive the next working day. Time schedules vary heavily between credit unions, but they have a genuine appreciation of urgency. Once affordability has been demonstrated and approval granted, a fast cash loan for poor credit will reach the member’s bank account within a few days.
Pros and Cons of a Bad Credit Tenant Loan
A tenant loan for adverse credit can be used to tackle a genuine financial emergency, such as paying the rent or fixing a car. The problem is that it leaves less money to pay the bills the month after. The usury rate of interest exacerbates financial difficulties so think carefully before borrowing money with bad credit. Don’t take out a guaranteed tenant loan with no collateral unless there is a way of repaying the debt without causing greater financial hardship later on.