Are you a tenant, lessee, or renter? If so, you likely face a difficult challenge when trying to borrow money because you do not have the benefit of home ownership to back up your application. If you have bad credit on top of being a tenant, you are even further impaired in your ability to borrow the funds that you need. However, there is a special loan product that services the needs of tenant borrowers called the bad credit tenant loan.
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Applying For Your Loan
Bad credit tenant loans are written specifically for tenant borrowers who have less than perfect credit. If you are among those who have a damaged credit file, you are certainly not alone. With the economy in its current state of upheaval and unrest, there are many borrowers who are finding that they have been short when it comes to money, often necessitating paying their bills late and bad credit is the result.
Lenders of bad credit loans for tenants are worried less about your previous credit performance and status as a non-home owner and more about your ability to repay them the money that they extend on your behalf. Requirements for receiving a bad credit loan designed for tenant use is that you are working and have been gainfully employed for at least a year.
For each year that you have been working, your approval rate increases. Lenders also like to see that you have stuck with one employer for a particular amount of time because this shows that you are a stable person who is appealing to lend money to. The amount of money that you bring home is also scrutinized by bad credit tenant loan servicers because they want to be assured that you will be able to afford the payment on your new loan. For this reason, if you are married, applying alongside your spouse for this type of loan is a good idea because both of your incomes can be considered.
Borrow As Much As $10,000
Although bad credit tenant loans are available in amounts as much as $10,000 or even more under certain conditions, applying with a cosigner is suggested if you wish to borrow a bigger amount. A cosigner can be your parent, relative, friend, or other person who has a good credit rating and agrees to assume the payments on the loan if you fail to honor the commitment you make to the lender in the lending agreement.
Many of the lenders who write this type of loan product will allow your cosigner to be released from liability once you have established a pattern of faithful payments (sometimes in as little as six months). Applying with a creditworthy cosigner has the added benefit of reducing the rate of interest that you will pay for your bad credit tenant loan because the lender is absorbing less risk when dealing with you in this manner.
To increase your approvability, you might also consider applying for a bad credit tenant loan online. Online lenders have historically low rates on this type of loan and can process your application faster, which means you can get your money in as little as 24 hours in many cases.