Are there bad credit loans to prevent eviction?

(Request from William in Riverside, California) I received an eviction notice November 26th 2013 which looked more like a lawsuit. I am having a hard time finding other homes to move to that I can afford including smaller ones as they all require 1st and last month payments along with security deposits. I can afford this home but a few events that happened caused me to fall behind like a roommate moving out unexpectedly. I have contacted the landlord and they have refused to work with me. Is there a reliable “sure-fired” loan company or anyone that can provide bad credit loans to prevent eviction. The landlord already gave me the option of pay and stay or eviction. So if I were to pay I would be able to keep my home. They are adding up legal fees and even asked for December’s rent before it was even due on the 27th.

I need help.

Dear William,

I’m sorry to hear about the troubles you had with your roommate moving out which have caused you to find yourself in a bit of a financial pinch. Since you feel that you can afford the home, we should focus on options that will allow you to avoid eviction.

You will likely find that the most common options that you will encounter involve consumer finance loans. While these may be the easiest loans to obtain, they also carry some pretty high interest rates. Rates as high as 30% or more are not unheard of. You are probably better off going through one of the lower-cost options they can still provide you with a loan to pay this month’s rent so that you can avoid the eviction. Most cash-strapped tenants who are desperate will consider consumer finance companies for bad credit loans to prevent eviction. There are cheaper options though.

Bank or Credit Union Rental Loans

First of all, your bank may be an option. If you already have a banking relationship with a financial institution, that relationship may be enough to allow you to qualify for rental loan with a reasonable interest rate. To inquire you would simply contact your personal banker at your nearest branch and ask them about a personal loan. Even if you have bad credit, loans to prevent eviction can be possible with a reasonable interest rate if you have an established banking relationship. This is especially true if you are receiving direct deposit of your payroll into one of their deposit accounts.

The lowest cost rental loan options are usually provided by credit unions. They tend to offer lower rates because they are nonprofit organizations. Some credit unions have strict membership requirements while others are very relaxed.

For example, Altura Credit Union offers signature loans with current rates as low as 6.99% APR. As long as you live in Riverside County or San Diego County, or in Anaheim, Irvine, Santa Ana, Rancho Cucamonga, Ontario or Fontana, then you may qualify for membership. Call 888-883-7228 to discuss membership and loan options with a credit union representative.

Rivers since residents of Riverside County or San Bernardino County may be eligible for membership through Arrowhead Credit Union. Arrowhead offers signature loans with no security interest at rates that are half of what many consumer finance companies charge. Current APRs range from 13.25% to 18%. Call 800-743-7228 to find out how you can get a personal loan to help pay your rent.

If anyone in your household has served in the military then you may qualify for membership through one of the service related credit unions. Options include Navy Federal Credit Union, Service Credit Union and USAA.

These are just a few of the options available to you. Since you can normally afford to pay your rent, you should be able to qualify for a reasonably priced loan. I recommend starting with your bank or credit union and comparing those rates with those offered by some of the other credit unions that serve Riverside County.