Tenant loans, while not as popular as credit cards, are a safe way to borrow and actually have numerous advantages over other types of loans. As the name indicates, these loans are not drawn against any assets, property or otherwise, so people who rent their homes have access to them.
Unlike credit cards, which offer a continuous and flexible source of credit, tenant loans are one time arrangement. This can really help with managing debt as it is not as easy to increase it on a whim, as many credit card customers know to their dismay, having racked up sizeable balances without really trying.
Applications for tenant loans are usually well thought out ahead of time, unlike most credit card purchases. Tenant loans allow the borrower both to obtain the money they need without getting out of control.
They are also very quick and straightforward to sort out, making them a good option in case of an emergency. You can complete a simple online application without the need for supporting documentation, and can reasonably expect to see the money in your bank account by the following day.
If you are used to being refused a loan due to poor credit, don’t despair. Usually, tenant loans are considered set of criteria and are often approved. If you have poor credit and are trying to build it back up, approval and prompt payback of tenant loans could be a real help.
There are drawbacks of course, and lenders willing to incur the additional risk of providing loans to those with dubious credit histories, will compensate themselves by way of higher interest rates.
If you are the kind of person who struggles to manage credit card debt effectively then tenant loans may benefit by being a much simpler arrangement.
Tenant loans are also an excellent way to begin repairing a damaged credit history, provided you comply with all the agreed terms of the loan and manage payments effectively.