How to Get a Tenant Loan

A tenant loan is really just another word for an unsecured personal loan. The convenience, and name of it, comes from the idea that it is for people who do not own a home. It is one way that a non-home owner can get a loan for just about any purpose. Here are some features about this little known type of loan - it may be the very type you are looking for.

A tenant loan may be the one type of loan that you can get when other types may not be readily available. Here are some of the things necessary in order to get this loan.

Unsecured

The one feature that makes this loan relatively easy to get is the fact that you do not need any security. It more or less is based on your present circumstances.

Employment

Probably the most important fact of a tenant loan in this country, is that you be employed and receive a digitized paycheck. The reason for this last feature is that the money needed for repayment of the loan must be automatically withdrawn from your paycheck. As long as you have the ability to make repayment on the tenant loan - you can probably get one.

Purpose

One really good thing about a tenant loan is that you really do not need any particular purpose in order to get it. You can use it for anything - debt consolidation, vacation or trip, new car, furniture - whatever.

Proof

Because there is so little in the way of collateral given, there is also the strong need for things like positive identification, proof of address, and proof of employment that will need to be given before the loan will be given. Probably extra steps may be needed for verification before you can get your loan.

Disadvantages

While they might be relatively easy to get, there are also a couple of drawbacks. The first is that the interest levels are higher than for a loan that is built on some form of collateral – a secured loan. The collateral is what gives the lender the ability to relax their grip a little – so the interest is higher. The higher interest may make it undesirable for debt consolidation – at least for some of it. If your credit is good, remember that 0% APR on some credit cards may do wonders for some of your needs.

A second problem with a tenant loan is that you cannot get as much money as if you had good collateral. With a second mortgage, you might be able to get $100,000. With a tenant loan, however, you may only get 25% of that figure.

A third thing is that a tenant loan must be repaid in a rather short time. With the higher interest, this is good for you, too.

The tenant loan does have a final advantage that needs to be mentioned. The approval process time is nearly eliminated because there is no collateral to evaluate. So, it would not take long at all for you to find out if there is one with your name on it. There are plenty of places online to do some research, to fill out applications, and to receive answers from two to four lenders –with only one filing! By the way, they are even making it easier for people with less than good credit to be able to get one, too.

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