Many people who have bad credit have a difficult time signing leases for apartment contracts or leases for cars. A useful tool for these people is an unsecured tenent loan. An unsecured tenent loan usually has an interest rate of 20% and a very short term; the usual use is to make a down payment on a rental property or security for it, and it’s meant to be paid off in three to six months from the underwriting of the loan.
Be very careful in taking out an unsecured tenent loan; there are lots of unscrupulous tenent loan sales reps out there making huge commissions off of back breaking loans. If you do take one out, pay it off as quickly as you can; the usual metric of paying off your high interest loans as quickly as possible applies here; more to the point, failing to pay off this loan can be the cause of an eviction if you’re not careful.
Even better is to avoid the process entirely, and accumulate some cash on hand to pay off your old creditors. Take up an extra job if you can, save the proceeds and live like a monk for a few months. It’s amazing how much money you can save up if you really try, and you can avoid needing an unsecured tenent loan at all, since you’ll have repaired your credit by hard work and effort.
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