Often times, when trying to get a loan, you need to put something up as collateral so that the bank or lending institution can have recourse in case you default on the loan. It also serves as motivation for the people taking out the loan, because they don’t want to lose their car or their house, so they will usually pay the loan. This system works pretty well, but it isn’t good for everyone.
People who rent a house or an apartment, and who may not own their car outright, may have trouble getting loans because they do not own anything that they can put up as collateral. This actually provides a bad situation because you are unable to build credit for such loans, without being given the chance to get such a loan.
This is where tenant loans come in. Loans for tenants are often given without the need to put something up as collateral, which can be great for people who do not own their own home, and don’t quite qualify for no doc loans. These tenants loans are often given out at a higher interest rate because these are a type of high risk personal loan, to make up for the fact that there is nothing securing the loan, such as a car or a house.
People use these loans for many different thing. Paying for a wedding or a family vacation are just some of the options. Other people use these unsecured tenant loans to pay for school because they don’t qualify for financial aid, but they still need to pay for school, housing, food, and books.
People with bad credit because of certain situation that have happened can still get a loan. These unsecured loans for tenants will take some work in order to get them if you have bad credit, but it is still very possible. You will have to prove to the bank or lending agency that you can pay the loan back. You will have to show various financial records such as bank statements, and any income that you may have in order to get a bad credit tenant loan.
Although tenant loans are possible to get, you’ll need to show that you can make the payments, and just be willing to pay more in interested that you would with a secured loan.