Where to Get a Bad Credit Tenant Loan
Unsecured Loans and Secured Loans Available- Borrow Money Today
Jul 3, 2009
An Individual who has missed or made late payments on their credit agreement is likely to find it more difficult to borrow money. Adverse credit entries are registered with all three credit reference agencies; this affects a persons' credit worthiness for the next six years. It remains possible to get a secured or unsecured bad credit tenant loan, provided applications are made to the right places.
Places to Get a Bad Credit Tenant Loan
Potential options for a bad credit tenant loan includes pawnbrokers, Credit Unions, doorstep lenders, logbook and Payday loan outlets. The rate of interest charged will reflect the risk posed to the lender; monthly repayments will be higher because of missed or late payments. It will normally only be possible to borrow money for a short period of time in order to keep the amount of interest accrued to a minimum.
Bad Credit Tenant Loans from a Doorstep Lender
Most bad credit tenant loans from a doorstep lender are for between £50 and £500. Existing customers may be able to borrow more- up to £2,500- as they will have established a degree of credit worthiness. The rate of APR on Provident Financial's doorstep loans (the largest lender) is 189.2%.
- Mrs Smith takes out a doorstep loan of £300 at 189.2% APR over 57 weeks. This would involve making repayments of £9 per week and would accrue a total of £213 of interest over the term.
No Credit Check Payday Loans for Those with Adverse Credit
A customer may require a bad credit tenant loan that will see them through until they are next paid. A Payday loan involves no credit check so it is perfect for individuals with an adverse credit rating. Borrow money - up to £1,000 - but be aware that interest rates border on the usury. Although it isn't uncommon to see advertised rates in excess of 1000% APR, the short duration of the loan means that it is potentially viable. The money can be used for any purpose, but a job, full ID and a bank account are essential.
Borrow Money from a Pawnbroker
A pawnbroker typically offers a customer a bad credit tenant loan for between £50 and £300 based on the provision of collateral, such as gold or electrical equipment. Provided that monthly repayments are maintained for the full term, the collateral is returned. If this isn't the case, the item will be sold to recover any money lent. This is a secured loan.
Bad Credit Tenant Loans for Car Owners
Individuals that paid for their car in-full may be eligible for a logbook loan. The interest rate is very similar to a Payday loan, but the amount borrowed is secured against the vehicle. The principle advantage of this borrowing source is that it may be possible to take out a larger adverse credit loan. Failing to maintain monthly repayments can lead to the car being repossessed and sold at auction. Should this not cover the amount owed, the debtor remains financially accountable for the difference. This is a secured loan.
Credit Union Loans with Affordable Monthly Repayments
Unlike other lenders, Credit Unions work purely for the interests of its members. Before a bad credit tenant loan is granted to an eligible member, a careful assessment will be made with regard to affordability. The maximum interest is capped by law at 2% per month, although the rate is often far lower in practice. A Credit Union loan can help a consumer improve their credit score.
Individuals that have missed or made late payments can still get a bad credit tenant loan, but the terms won't be quite as favourable. Check to see if a Credit Union is available as it could be possible to borrow money with lower monthly repayments than Payday loans.
Disclaimer: This article in no way attempts to give legal or tax advice. One should consult a licensed attorney, tax advisor, or other qualified professional.
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