Will I Get a Tenant Loan?

By: TA Honey

Looking for a lending body/bank? Unsure about your chances of getting a loan? Well, read on to explore what's in the deal.

Applications for tenant loan far exceed the number applying for secured homeowner loan. The basic difference is that one is required to deposit a collateral for getting a secured loan. Since the collateral security ensures the lending authority of the payment, the loans are easy to obtain, are issued at a lower interest and loan amount is greater as compared to secured loans. Unsecured homeowner loans too are easier to obtain at a lower interest rate than a tenant loan.

Tenant loans are usually available condition to various factors like credit history, assets owned, payment mode etc. Interest rates charged are usually higher than secure loans, and the credit limit is usually available from ? 5,000 to ?25,000. In spite of a higher rate of interest and more rigorous paper work people apply for tenant loans because they do not require assets as collateral.

Bad credit history, arrears, CCJs, debits, default in payment of installments, overdue credit card payments may lessen your chances of getting a tenant loan. If in case you have a bad credit history or outstanding bills yet to be paid and you want to get a loan then you might have to go through a lot of paper work, stricter terms and conditions for repayment mode and a very high rate of interest. It is not entirely impossible to secure a loan if since there are firms which are willing to extend loans to people who find it difficult to find one under normal circumstances.

A co-signer may increase your chances of getting a non-homeowner loan. In case of default on your part the co-signer will be held responsible for the payment. It is also advisable to find a debt consolidation service if you have several loans/dues to pay. Loan insurance may also be opted for to secure payment in case of mishap, though it will be an added expense to get a tenant loans.

Tenant Loans
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