Unsecured Tenant Loan – Is It for You?

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Posted on 9th November 2009 by Sandra Thompson in 1 |unsecured loans |unsecured tenants loans

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We are all confronted with different financial challenges at the most unexpected times. You may need to borrow extra money to cover for larger expenditures such as vacation, home improvement, wedding, etc. Some people need to take out a loan for debt repayment.



While most lending companies offer secured loans or loans that require the submission of collateral, there are also lenders who are willing to extend loans without asking for collateral. Unsecured loans are also called tenant loans because even renters or non-homeowners can obtain them.

Unsecured Loans – Loans for Tenants

Without the submission of collateral, lenders will often determine a person’s credit worthiness based on his/her credit history and employment background. To qualify for a tenant loan, you will need to show proof of a stable employment and an active bank savings account in your name.

What is the difference between secured and unsecured loans? First, the rate of interest will vary depending on the lending company. Obviously, there is more risk involved so lenders will charge a higher interest rate per month for tenant loans. The maximum loan amount is also lower than secured loans.

What about the repayment terms? Since the interest rate is higher, you don’t want to get stuck with your repayment for a long time. Most lenders require a shorter repayment period to reduce the risk of default.

Other Prerequisites

What are the requirements to get approved for an unsecured tenant loan? As we have said, you need to have an active savings account as well as proof of steady income. Thus, your lender will at least have assurance that you will be able to keep up with your repayment obligations. Borrowers must also be of legal age (18 years and above) to get approved.

Some lending companies may require a high credit score to get approved while other lenders may have a more lenient credit standard. Yes, it is possible to get unsecured loans for bad credit but you can expect to pay for an even higher rate of interest and fees.

If you have a plan to get an unsecured tenant loan, spend time comparing lenders. You want to make sure that you understand the Terms and Conditions. Most tenant loans can be obtained online but you want to be certain that you are dealing with a legitimate and trusted lender before submitting an application.

About the Author

Sandra Thompson is a loan consultant with Unsecured Loans Now and has been providing consumers and business owners with Unsecured Loans since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Business Loans and Unsecured Credit Cards. Copyright 2009.


What are Unsecured Tenant Loans

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Posted on 21st August 2008 by Sandra Thompson in 1 |unsecured loans |unsecured tenants loans

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The best loans in the market often require the submission of collateral. If you’re a home owner in need of a loan, you may apply for a secured loan and use your home property as security for the sum you’ll borrow. But what if you don’t have a property of your own? What if you’re just renting a home? Can you still get approved for a loan without submitting collateral?



Tenant loans are unsecured loans, too!

Today, you can find lending companies who willingly provide loans without collateral. These loans are known as unsecured loans because they do not require any form of security from the borrower. Such loans can also be considered as tenant loans since they are usually offered to people who rent homes or apartments.

Because it doesn’t involve any form of security, this type of loan poses more risk to the lender. To make up for the high risk, lenders charge higher interest rates and fees for unsecured tenant loans. However, despite the fact that these loans cost more, you can be sure that your application can get approved easily.

What are the requirements for this type of loan?

Specific requirements may vary from one lender to another. However, lenders would often require that the applicant to submit proof of regular employment or a stable source of income.

Your personal credit history can also make a big difference since most unsecured loans strictly require good to excellent credit. Even if you’re not a homeowner, if your credit history shows that you’ve been a good payer to all your creditors, then you should have no problem getting approved. Having an outstanding credit score gives your lender more confidence in your ability to make repayments.

Nonetheless, there are also lending companies who extend tenant loans or unsecured loans even for people with bad credit. Still, you can expect that these loans have more expensive rates and fees. Of course, this doesn’t mean that you should settle for unreasonable rates and terms just because you have bad credit history. The strategy is to research all your possible options, compare different lenders and find the one with the most reasonable offer.

Pay Attention to Your Repayment

Although an unsecured loan is not tied up to your property and frees you from the risk of foreclosure, it is still crucial to pay close attention to your repayment. Why? As we’ve said, tenant loans charge higher interest rates and penalties. Consequently, failing to submit your monthly payment on time can cost you even more.

In addition, how well you keep up with your repayments can affect your credit history. Being a tenant, your credit report plays a very important role whenever you need to acquire loans or other forms of financial assistance. Therefore, it is your duty to keep your credit history in good or excellent standing at all times. Remember, enjoying good credit gives you the opportunity to choose only the best lenders in the market.

About the Author

Sandra Thompson is a loan consultant with Unsecured Loans Now and has been providing consumers and business owners with Unsecured Loans since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Business Loans and Unsecured Credit Cards. Copyright 2008.