Getting a loan to pay rent

Tenants who are having difficulty making the rent payments on time often consider getting a loan to pay rent rather than risk paying late fees or worse becoming evicted from their apartment.If you are seeking a loan to pay your rent then there are a few considerations that you want to take into account prior to applying for the loan.

Can Rental Assistance Programs Help?

Before you dive into a series of loan payments consider whether or not you may qualify for rental assistance through one of the many nonprofit organizations and local government agencies that serve your community. These agencies are created to provide much-needed rental assistance grants and zero interest loans to households who may have few other options.

Some of the organizations are local churches. Others are nonprofit charities that are funded through public and private sources. City and county agencies also provide substantial rental assistance resources to help families who might otherwise become a wrist for an eviction and ultimately become homeless.

A few agencies provide services to households of almost any type of situation. Most agencies will focus solely on low and moderate income households who lack any family support in their time of need. Since these programs vary by geographic area, you can find out what is offered in your community through local rental assistance programs.

Rental Loans

Sometimes getting a loan to pay rent is preferred to paying late fees to your landlord. It can also help you avoid the increase costs involved with becoming evicted from a rental property. Since evictions can add hundreds or thousands of dollars in debt it can be worth it to borrow money if it helps you to avoid the eviction.

Some community organizations provide interest-free loans to households who might not have access to normal cost loans. An application process normally applies.

Consumer finance companies can provide rental loans at interest rates that normally exceed 25%. The advantage to these types of loans is that you can usually get the cash that you need just as fast as through other higher costs loans but without having to pay predatory interest rates.

Payday loans with interest rates of 391% APR on average are a stupid option. There is rarely any situation incurred by any household that justifies such an expense. If you are considering a payday rental loan you should first contact your local Department of Social Services or one of the other rental assistance programs serving your community.

Many community banks and credit unions provide rental loans via unsecured personal loans. These can often be some of the easiest loans to repay since they carry lower rates of interest with payments that can be spread out over 12 to 24 months.

Before getting a loan to pay rent, make sure that you are going to have the income to repay that loan. Mainstream rental loans will be easier to repay than high-cost payday loan products.