Need A Loan For Rent: Use with Caution
Rent is a necessity that thousands struggle to pay each month. Sometimes the income does not flow for the month as expected. Maybe the landlord has raised the rent without much of a notice. When this happens, tenants have not a choice but to pay the rent or be forced to leave. Have you found yourself looking and need help paying rent? Maybe an emergency has arisen and you are in need of emergency help with rent. If the eviction notices are coming soon, it may be time to consider a loan to pay rent.
Is Eviction Coming Around?
If this is not your first month falling behind on your rent, and your landlord has given you multiple warnings, eviction may be right around the corner. Eviction does not come immediately after a missed rent. Indeed, it can take up to a month for the landlord to process the written notice and give you. That’s the time for the tenant to catch up the rent or find another place to stay. If you are expecting this written notice to appear soon, then you may need a loan for rent. Before the eviction notice is provided in written format, seek out what you need a loan for rent. Then find where you can obtain it.
Before your landlord can officially remove you from your dwelling, know that you do have rights. Plus you have a time period to make up the difference in pay if the landlord will allow you to do so. If they choose not to agree to you paying the rent, and they want you to leave, you have 45 days to have your stuff removed. Keep it in mind: once they document an eviction date, they are legally within their rights to enter the property after that date. They can also remove your items. Many come home to find their stuff outside of the home and some stuff was taken by those walking by. When you are provided an actual eviction notice, it is time to take action. Make a decision on how you plan to move forward.
Be Cautious If You Need A Loan For Rent
If you do need a loan for rent though, it is essential that you consider the financial obligation you will have in the months to come until the debt is repaid. Consider the interest rate that will be added to the loan and the overall payback amount of the loan. If you need a loan for rent, say maybe $500, do you really want to pay back $1500 on that loan, for a total of $2000? Surely the answer is no matter if you need help paying rent. A loan to pay rent should not be something that will burden you so bad financially that you are unable to swim out of the debt.
Also, consider the number of monthly payments you will have with this loan. For those online personal loan lenders, many require payments twice a month. Is this something that you can afford? These payments are broken down this way to make the loan appear more affordable. This way you can also pay it back with thirty months or less. Most of these loans require a quick repayment. The best way to do that is to double up on the payments.
Where To Go If I Need A Loan For Rent
If you have decided that you would like to take out or need a loan for rent, there are several financial institutions that are willing to loan you the money you need to make your rent payment current. Below are some of the options available for emergency loans that are used to pay rent.
- Credit Unions
- Title Loan Companies
- Local Financial Institutions
- Online Personal Loan Lenders
- Payday Loan Lenders
- Pawn Shops
If you are really looking for cash, there are several options available to you that you can find physically or online.
Bank/ Credit Union
If you happen to have fair or good credit scores and you are desperate for a personal loan, then visiting your local bank or credit union would be your best lending option. Their interest rates will be the most affordable on the market, and if your credit score meets the criteria demanded these loans then you should take advantage of this option. For those of us with less than fair credit, we are looking at the remaining options as lenders.
Title Loan Companies
These financial lenders offer you cash without the need for a credit report, making them heavily used by those with bad credit. What they do require in return, however, is a lien on the title of your vehicle or motorcycle that you own. Until you pay the loan back, they will hold the title and temporarily own the car. This allows them the ability to get their money back from you should you decide not to pay your debt. They will obtain your car and sell it for the remaining balance due on your account.
Local Financial Institutions
You have seen these companies tucked away in your local shopping plazas, or maybe you have received one of their letters in the mail inviting you to borrow money. When you visit their location, you can expect to be approached with a secured loan offer. Yes, you guessed it. Very much like the title loan companies, these institutions require some form of collateral before moving forward with processing the loan. While you may not need a vehicle for these loans, they will require things like a list of serial numbers for valuable electronics and furniture that they can obtain should you decide not to pay your debt to them.
Online Personal Loan Lenders
When searching for lenders online, the use of a lender finder service tool will allow you to submit a pre-approval application and receive a variety of offers from the different lenders available. While these lenders may not require a secured loan, and not ask for collateral, they will require a credit report to determine your interest rate level. Expect the interest levels on these lenders to be so high that you could repay your loan several times with the amount of interest they are charging. Depending on the state you are in, there are some states with caps on the interest rate, but they are still much higher than competing lenders. Also, many of these lenders require bi-weekly payments. What this means is that you can expect to provide a payment not once but twice each month around your scheduled payday.
Payday Loan Lenders
These lenders often do not loan out more than one thousand dollars at maximum. While your credit may not be run at these lenders, they require proof of income before lending you money. They also expect these loans to be repaid in one or two paydays maximum, hence the name, payday loans. These loans are always used for some sort of emergency, and if you are behind only several hundred dollars on the rent, this may be an option for you. However, consider the maximum amount loaned when considering this option as a lender. Also, whatever you borrow from this lender, they will expect that amount to be paid with interest on payday, so make sure this is something that you can afford.
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Do you have some valuable jewelry, equipment, or antiques that are valuable? If you want to borrow money from a pawn shop, expect there to be a significant amount of collateral required. Should you not make a payment, your property that you use as collateral will become the property of the pawn shop, and you could be forced to buy it back if it is something that you want. If you own something valuable that is very dear to you, it is not recommended using it as collateral, should life throw you a curve ball and you find yourself unable to pay back the loan.
Am I Eligible With Bad Credit If I Need A Loan For Rent?
Bad credit is a credit score that is at 649 or below for most financial institutions. It is considered for both initial approval and also for determining the interest rate for the approved loan. For those of us with bad credit, we often believe that we are not eligible for the same things that others with better credit take advantage of daily. While decent interest rates may not be available, if I need a loan for rent with bad credit, there are options available to assist me with getting through the hurdle. I have the option of unsecured loans online, and secured loan options with my local finance lenders, payday loan companies, pawn shops, and title loan lenders. These are options if you can’t get the money to pay rent.
What Other Financial Options Do I Have If I Need A Loan For Rent?
If you need a loan for rent, make sure that you have considered every other option available to your first.
- Borrow from family or friend
- Pick up extra shifts or side hustle
- Credit Card Advance
- Bring In a Roommate
While it may not be the best option available, you may need to ask a friend or family member who has the financial means to provide you with the money to make the payment. Take your family member or friend to lunch and ask them about borrowing money. Let them know the situation. Then ask when they would like the loan to be repaid. Be professional with the request and draft it up in a professional response. Sign the contract and let them know that you will be repaying the loan.
Pick Up Extra Shifts
Maybe you can take up additional shifts. That will give you the extra money for rent when you need to catch up from the previous month. With enough shifts, you may have enough to catch up or give the landlord a significant amount of money. This might help you to avoid a loan for rent.
Explore the Option of Credit Card Advance
Most credit cards come with the option for a credit card advance. You can take the card to a bank and have the cash advance completed so that you can take that cash to your landlord. This way, you catch the rent payment up and avoid the need for a loan for rent.
Find a Roommate
If so, it is time to take on a roommate. With a roommate, you have the option to split the rent with them in half, as well as the utility bills. Taking on a roommate that is responsible can lead to better monthly budgeting. You can save money with the assistance for the rent and utilities. It will prevent the need for a rent loan in the future.
How Can I Save Money To Avoid The Need A Loan For Rent?
In order to prevent getting a loan to pay rent, it is important to consider saving money in the future. So that you can avoid the need a loan for rent. Taking advantage of extra income is something to consider when you are looking to make savings. Whether you want to work additional hours at your current position, take a second position, or take a side hustle, you should consider multiple streams of income in order to generate a savings plan for your monthly budget.
- Dog Walking
- Waiting Tables
Babysitting & Dog Walking
Whether you have service experience in things like babysitting or dog walking, there is money to be made. Those can make a substantial income. Working a few nights on the weekend or walking dogs during the day if you work at night will give you a few hundred dollars a month. With this few extra hundred dollars a month, you can begin building your savings. This way you have future rent money for the months when work is slow and the income is not coming in as regularly as it once was. Once you get one or two clients, you can expect your clientele to begin to grow with positive recommendations from these contacts. Advertise your services in your local community and on social media in order to build your clientele.
Maybe you want to wait tables in the evening after your primary job. If so, tips from waiting tables can become a consistent source of income. Because the tips vary from night to night, it is important to put the tips from the better nights away in savings for that rainy day and short on rent month. In the busier months, servers can make a significant amount of money in just a few nights, so you do not have to work every night after work. Just a few extra nights a week could make all the difference in the savings.
If you think you need a loan for rent, it is important to know that you do have options for the loan and also other options to consider before you come to the need of the loan. If you still have time to make the money, it is best to consider other financial options prior to taking out the loan. Seek out roommates, additional income, or borrow from family right away to catch up the rent.
If you are at the point of taking out a loan to pay rent, then you need to consider taking out the best option of loans. Review all of the interest options available, and choose the loan that will cost you the least amount of money each month. Be ready to take on other options moving forward to prevent the need for future emergency help with rent. From a roommate to a second income, consider all options available to you before you take out a loan that will continue to be a part of your monthly finances.
Kasey’s writing experiences exceeds over 5 years in Academic and Content Writing, as well as more than 3 years in business writing services. The content subjects range from a business focal point, to public service, personal finance, and variety of topics around money.