Unsecured Loan for Tenants: Helping Renters to Keep Their Homes

Jul 26
13:25

2012

Donna Hammond

Donna Hammond

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Not just mortgage payers need help to keep their homes; tenants also sometimes need financial assistance. The availability of unsecured loans for tenants means that the assistance is there, if the criteria is met.

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With the fuss made of mortgages and covering the costs involved in purchasing a home,Unsecured Loan for Tenants: Helping Renters to Keep Their Homes Articles it is refreshing to know that tenants are not excluded from financial help. It is possible to get an unsecured loan for tenants to use to get themselves out of financial hot water, and ensure their home remains their home.The truth of the matter is that money problems can affect tenants much more immediately than homeowners. Lenders are generally reluctant to take early action against homeowners, but landlords tend to have less patience, and while there is no such thing as guaranteed application approval, some simple steps can see tenants clear any due rent.Of course, there are a few tricks to help ensure qualifying for an unsecured loan. But it is important to keep in mind that in stating the purpose of any loan when applying for it, the cause is helped considerably.Are Tenants Different?The short answer is no. Lenders that include unsecured loans for tenants amongst their array of products know that a tenant is neither buying anything. All they are doing is covering the cost of paying rent for a period of time.It is more accurate, perhaps to think of tenants as applicants who are seeking to clear a specific debt. With that in mind, there are some aspects to keep in mind to get as close to a guaranteed application approval as possible. Lenders always need assurances that the loan will be repaid.A key factor is the purpose of the unsecured loan. This is very important, as it illustrates that the borrower is motivated in his or her approach for funds in the right way, and is not set to be wasteful.Purpose and CriteriaThe purpose of an unsecured loan for tenants is pretty clear to start with, but lenders like to know if the funds are to be used to clear arrears in rent, or if they are simply pre-empting an expected period of difficulty. Usually, the former situation is the case.We would all like to be assured of guaranteed application approval, but in the absence of such certainties, it is essential that the set criteria is met. First of all, the applicant must show that he or she is gainfully employed and has an income that can cover the repayments. The applicant must also be a US citizen, and be over the age of 18.Once these basic criteria are confirmed, the chances of getting approval on an unsecured loan are much higher. But credit rating and existing debt level are also taken into account. The rate helps determine the interest rate to be charged, while existing debt helps determine if the repayments are affordable.What Helps the ApplicationHelping to improve the chances of approval is a key occupation for more applicants. When it comes to getting unsecured loans for tenants, the best move to make is to find a cosigner. With a person willing to take responsibility for the loan should the borrower no longer be able to make repayments, lenders feel doubly secure.This is often enough to guarantee application approval, provided that the applicant meets the minimum criteria too, and that the cosigner has an excellent credit rating and large enough income to cover repayments if called upon.When such matters are proved, then a tenant can get the unsecured loan he or she needs to keep up their rental repayments.When such matters are proved, then a tenant can get the unsecured loan he or she needs to keep up their rental repayments.