Should I borrow money for rent?

This is a tricky question. We actually started this service because our nonprofit organization was receiving so many calls from tenants requesting a loan to pay their rent. I can say that over half of those situations would best be served by another solution. Often job training and job search assistance can help increase income. A grant could cover rent for a month or two during the job transition.

Situations where a loan is a feasible option are those where the person is experiencing a temporary disruption in income or an unexpected expense that might qualify for hardship grant funding, except the household income is too high to qualify for a grant. This is an example of a situation where a loan could be an option.

Primary loan options would be through the primary bank or credit union where the person already has an account. Some credit unions that have an open membership policy can also be a great option. There are additional peer lending platforms that facilitate loans between tenants and private individuals willing to loan to applicants.

• This topic was modified 10 years, 2 months ago by Kenneth Long.