Is It Possible To Get A Tenant Loan With Bad Credit?

With most types of loans it is very difficult to secure finance

, without being a homeowner or having some other type of property to which the loan can be secured to.

Tenant Loans, on the other hand are specifically designed to offer short to medium term finance solutions for people who are not homeowners and are living in rented accommodation. These types of loans are also the best medium term loan solution for tenants with bad credit, or no credit history at all.

Tenants are typically able to apply for Tenant Loans ranging from 1000 to 5000 and repay over a period of 12 months to 60 months. While it may seem an easy solution to the financing of a new car, a holiday or whatever the case may be, it is important for potential borrowers to be cautious.

If you do have bad credit, you may be charged a significant amount more by some lenders than good credit customers would be charged. One way of limiting this for bad credit borrowers is to apply for a Tenant Loan with a guarantor.

A guarantor is a close friend or relative essentially acting as a safety net for the borrower. If you unable to make repayments for some reason, the guarantor will step in and pay off the rest of the loan for you. Having a guarantor is a good way of reducing the level of risk for a lender especially if you have bad credit and is looked on favourably by most lenders in the industry.

There are a few more potential considerations a potential Tenant Loan borrower should take into account. Some companies operate of floating interest rates, which can make your repayments significantly higher if the national interest rates rise.

It is a lot safer to take a Tenant Loan from a lender that offers a fixed interest rate, which is the safest way to go, to avoid being caught out by any fluctuations in the economy.

Some lenders also try to charge hefty application fees or quick payment charges, so borrowers should try to find out before applying, what charges will be incurred post-application.

Borrowers with bad credit are best suited to apply with lenders that have good support teams. If for whatever reason you are unable to make your repayments, you will likely incur charges from all lenders.

Having bad credit is a big obstacle for most type of loans. However with Tenant loans, it enables borrowers with bad credit to secure the finance that they require.

by: Derek Flatersly

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