At times you may find yourself in a situation where your rent is overdue and you don’t have the money to pay it. It can be quite embarrassing failing to pay house rent on time, and you need money for rent ASAP. To avoid such embarrassing scenarios, there are emergency loans that you can take to cater for the rent before finding another way to settle it.
Rent Loans to Quickly Resolve Your Rent Problems
People who need a loan to pay rent usually require it immediately rest they risk losing their apartments or some of their possessions. There are some state government and some local non-governmental organizations which offer programs and grants to help with payment of rent. However, these organizations may take time before approving and releasing a loan to a client. And the client may lose his apartment while waiting.
Despite this being the safest and most secure way to apply for a loan, it takes a substantial amount of time and someone in need of an emergency loan for rent does not have the luxury to wait for the loan to be approved. Some house owners and landlords are not very patient and they evict you almost immediately when unable to make payment for the rent.
Lender Finder Service for Rent Loans
Emergency loans for rent may be available quickly through online lenders. There are online lenders who offer personal loans you can use for emergency loans for rent which is a very convenient way to get house rent when it becomes impossible to wait for loans from the local non-governmental institutions and the state government rent grants to be approved and disbursed and you need money for rent ASAP.
These online lenders can be found through lender finder services. They operate under a code of conduct under the OLA that helps to protect both the borrowers and the lenders. And to ensure that the validity and the terms and conditions of the loans follow certain guidelines.
Before jumping to sign up for a loan online, it is vital to make sure that the lenders you are getting involved with follow good lending standards. There are many online lenders today which makes it difficult to know which ones are credible and which ones are not. The lenders listed under the OLA are the best to go within cases of emergency loans as they are all bonded by a certain code of conduct that they cannot violate.
Know your Lender
The OLA is basically a trade organization that works as a point of liaison between the online trading industry (lenders) and the members (borrower). The code of conduct that governs all the operations under the OLA keeps the data of the clients safe as well as upholding the industry standards of the organization.
The Online Lender’s Association holds the lenders accountable and in addition, provides a helpline to potential borrowers to help them go about online lending with ease. The OLA also offers a platform where all fraudulent acts from the lenders can be reported as well as suspicious transactions and claims that are not in the record.
What Necessitates Taking an Emergency Loan for Rent
Paying rent can be very stressful and a very daunting task especially if your financial situation is wanting. People lose jobs unexpectedly and if that job is the source of the rent money then there is bound to be a problem and difficulties in raising rent money. Certain emergencies that may come up at the end of the month or beginning of a new month when you need money for rent ASAP necessitate the need to take an emergency loan to pay for rent.
Sometimes people get carried away after receiving their salary and go overboard treating themselves out and their families. And they forget that it is almost that time of the month.
Save on Rent Rather then Financing is Always Best
Other times people get indulged in festivities and completely forget about rent payment while at other times a child may get sick and in case you don’t have a medical insurance cover you are forced to use the cash you had set aside as rent money to cater for the medical bills. There is no specific reason why you may need an emergency rent loan, but whenever you do, Loanry may be able to help you find a lender through their personal loan money tools.
At times, there is the issue of bad credit. Many people find themselves in situations where they already have bad credits from other lenders. This is what necessitates finding a lender for an emergency loan for rent through the service when you need money for rent ASAP. Traditional lending institutions do not offer loans to people with poor past credit which is a challenge to those with such a history.
Good Credit helps with Rent Loans
Sometimes you may have good credits but the traditional lending institutions offer loans at very high-interest rates. When you need an emergency loan for rent it means that your financial situation isn’t so good. As such, you need a creditor with the lowest interest rates to avoid defaulting the loan. Loanry doesn’t determine the rates. But simply helps you find a lender whose interest rates are dependent on that particular lender’s terms.
There are many reasons that may push one to take an emergency loan when you need money for rent ASAP; poor financial planning being another. When you do not plan well for your finances, you end up misusing your money and finding yourself in situations that are both embarrassing and stressful. Having a good financial plan that you stick to is a good way to ensure you don’t find yourself in such a situation.
You can also employ the services of a financial manager to manage your finances. And to ensure you don’t overspend where there is no need to. A good financial plan should be accompanied by financial discipline otherwise it won’t be impactful at all and you will find yourself in need of financial aid to cater for small bills and rent arrears settlement.
Payday Loans vs Personal Loans
Payday loans and personal loans are both emergency options that can be taken to cater for rent when you need money for rent ASAP. They are both effective for people with bad credit history and people who need quick cash. Without the hustle of all the paperwork and the formalities when applying for loans in traditional lending institutions such as banks.
As the name suggests, payday loans are small cash advances that are given to clients to cater for small emergencies such as house rent and other small bills. These loans are linked to the paycheck of the borrower which is not the case for personal loans. Personal loans, on the other hand, are quick loans that may apply to online from lenders who you may be able to find through services that help you find lenders.
Payday lenders charge very high-interest rates. This is because they usually deal with high-risk customers. They have very exorbitant compounding interests for all cash advances. Personal loans on the other side offer very friendly rates for their clients. And is definitely a better option if you are considering taking an emergency loan to help with your rent payment when you need money for rent ASAP.
Beware of Payday Lenders
Payday loan lenders do not have any code of conduct that they operate under. This means that they are not quite as reliable as personal loan online lenders. Payday loan lenders do not offer their clients any form of workable repayment plans. Loans for rent are repaid according to the terms and conditions that were drafted when the client was taking the loan, and after the client was satisfied with the terms and the repayment plan.
Both payday loan lenders and online loan lenders do not consider the credit history of the person applying to get an emergency loan for rent. They both offer advanced loans that are easy to get. And which do not require a lot of paperwork and official formalities. Since most of these borrowers are probably loan defaulters in other traditional lending institutions who are looking for urgent financial aid.
Payday loans are quite expensive, as stated above. They have extremely high-interest rates and their repayment term is very short; usually two weeks. Payday loans are considered financial quicksand because if you are unable to make the payment in the given two weeks you are forced to take another loan to settle the initial one. It thus becomes an unending cycle of loans and debts.
Pros and Cons of Emergency Loans for Rent
Taking an emergency loan to cater for your rent when you need money for rent ASAP is a good way to get that burden off your chest without much struggle. Emergency loans are easy to get. And they can be accessed by anyone regardless of their profession or their financial statements and situations. On the other hand, emergency loans for rent have their disadvantages and certain repercussions that come with taking these loans.
Emergency Loans are Very Flexible
This makes them appropriate for any circumstance that you may find yourself into. The loan may go into your account and may not require a long waiting period, unlike other loans. The flexibility of these loans specifically means that you can access them at any time. From the comfort of your house. They are not dependant on any form of paperwork. And they do not require a lot of official documentation and paperwork processing.
They do not Require any Form of Collateral
Unlike other loans that you may find through traditional lending institutions such as banks, emergency loans for rent do not require any form of collateral for approval. This means that you don’t have to risk forfeiting your home or any assets in case you default the repayment of the loan. Most of the emergency loans especially for little funds like rent cash do not require you to give up your assets as collateral and so they are very convenient.
Emergency Loans Take a Considerably Short Time to Apply
The loan application process for an emergency loan for rent payment is very short. This makes it both reliable and convenient especially when you need money for rent ASAP. When in need for quick cash to settle your rent, you don’t have the luxury of time to wait for approval and disbursement of the loan. This is what makes emergency loans a very comfortable way to access quick cash compared to using banks and other financial lending institutions.
Cons of Emergency Loans
Everything that has an upside has its disadvantages as well and emergency loans are no exceptions. Despite them being very convenient and having all the advantages, emergency loans for rent also have their disadvantages. And their fair share of drawbacks as well. The following are some of the drawbacks you may encounter when you need money for rent ASAP.
Emergency loans have stricter requirements: Online lenders tend to be very choosy when considering people. They give emergency loans for rent to since this type of loan is unsecured. Lenders consider the credit score for a client when approving a loan or rejecting a request for one. Other factors you may consider by lenders include the amount of debt the client already has, the credit history as well as the income of the client applying for the loan.
They offer loans to pay rent but you have to meet their requirements. These requirements can be a hindrance to get the loan when you didn’t meet them. And you are in need of money for rent ASAP.
Review Your Lenders Terms Carefully
Slightly Higher Interest Rates
Emergency loans have an interest rate that is slightly high versus other forms of personal loans from online lenders. Emergency loans are based on the lender’s creditworthiness and his ability to repay the loan. These loans do not require the backing of an asset as collateral in case the client defaults making payments. As such, the interest rates of such loans have a slightly higher interest compared to secured loans.
There is a higher risk which the lenders have to take when giving out these loans thus higher interest rates involve. While searching for a lender, it is advisable to have a good credit score. This helps when it comes to interest rates for your rent loan.
Smaller Loan Amounts
When considering giving out emergency loans for rent, lenders can be very limiting on the amount they give out. They limit their emergency loans to small funds again because this type of loan is not secured. If a client has a low credit score and is currently unemployed then he is considered a high-risk client.
This limits the amount of emergency funds the lenders can give to such an individual. To avoid having a bad credit score or to improve your credit score if you already have a bad one, there are things that you need to do to ensure that you get the amount of emergency you apply for in the future. This includes paying your bills on time, diversifying your credit mix, and also ensuring your credit reports are accurate at all times to avoid any forms of controversy.
We have all found ourselves in need of an emergency loan from time to time. Sometimes we find ourselves in need of emergency help with rent or in situations where our only option is taking a loan to pay for bills and cater for other personal expenses such as rent payment. Needing urgent cash to settle rent is not something you should be ashamed of.
There are many people who find themselves in need of money for rent ASAP. It is not something you should stress over either.
Emergency loans for rent payment are a good way to settle rent arrears when you need money for rent ASAP without getting into loggerheads with the landlord and without tarnishing your reputation. The loans are instant and the best in situations where the rent is already overdue and you require to settle the rent in a very short period of time. Use a service to find credible and reliable online lenders to aid in your financial needs. When you need help paying rent, Loanry may be able to help you find a lender in the market.
Thomas is a contributor and writing professionally creating palatable, actionable content in the realm of finance. He has been working exclusively in the media and finance industry. He began co-hosting a radio program on a local CBS FM station while working part-time in the communications department at a local college. Thomas’s other work experience includes writing freelance for Yahoo Finance!, Bleacher Report and others.