Personal Loans Articles

Are You A Tenant With Bad Credit? Get An Unsecured Loan To Help

If you are a renter, trying to get a loan can make you feel like a pariah. It seems like homeowners get all of the breaks, even homeowners with bad credit. But if you are a tenant with bad credit, getting an unsecured loan can help you not only get through your current financial woes, but help improve your credit rating. For a tenant with bad credit, getting an unsecured loan is by far the safer alternative than getting a payday loan.

Why Is That?

Payday loans have ridiculously large interest rates because very few states have limits on how much interest they can charge. Some victims of payday loans were shocked to discover that the interest rate on their loan was 400% or more. While many states are now scrambling to pass legislation putting caps on payday loans, it's already too late for thousands of Americans who will never be able to pay off their payday loan.

When you are a tenant with bad credit, getting an unsecured loan is much safer for you and your financial future. Granted, the name "unsecured loan" doesn't sound too safe. However, the insecurity lies with the lender, not to the borrower. All it means is that you are taking a loan, but the lender realizes that you don't have capital like a house. The interest rates are going to be higher than for a person with capital, but they still aren't going to be as high as for a payday loan.

Before You Get One

If you have been reading this far, chances are that you are a tenant with bad credit. Get an unsecured loan is sounding more and more like really good advice, but it is a process that takes a little time. You should do comparison shopping to try and find the best interest rates and length of time you need to take to repay your loan. Some places require that you pay back in one year and some 25 years.

You also need to check if the lender needs you to be a US citizen or not. Most of the time, you do need to be a legal citizen. But if you are a US citizen and a tenant with bad credit, getting an unsecured loan is possible, especially if you have a job for more than six months, a phone number and a place of residence. If you have a bank account, that makes you look even better.

Some places will offer you up to $30,000, but resist borrowing more than you really need. Remember you do have to eventually pay all of this back, with interest. You should be able to tell the lending institution how much you want and not have to only choose from a few options. You are a valuable customer to them and you may be surprised at what they can do, provided if you ask. How To Find One

If you are a tenant with bad credit and need to get an unsecured loan, where can you go to get one? There are many financial institutions that offer unsecured loans, but it's always nice to get a recommendation first. The best places to go to find these recommendations are your bank and your credit card company (if you have a credit card). You can also ask your most trusted friends and business associates about when they were a tenant with bad credit and got an unsecured loan.

You need to do your homework and take a good look at what you really need to borrow before getting an unsecured loan. But often they work out to be just what you need to help get your credit rating back up.