Tenant Loans Are Perfect In This Situation Because They Are Designed Specifically For People Like You

So, you need some finance?

Don' t worry. Not sure how to apply and who to apply to? It's maybe not quite as big a problem as you might be thinking. As a tenant, you are unable to use your home as collateral in a loan application. In fact, there are probably lots of options for you to consider and this article aims to put you on the right track. Tenant loans are perfect in this situation because they are designed specifically for people like you.

Whilst unsecured loans and tenant loans may be easier to apply for, they are not necessarily easier to get. In many ways, it could be said to be an easier application process than with a secured loan for a homeowner because you won' t need to get involved with arranging an independent valuation of the property, searches etc and, solicitors all of the obvious costs that come with this type of finance. The major factors at work are generally affordability of the loan and your previous credit history. Affordability. Let's look at each of these in more detail. When a lender is considering whether to lend money to you, they are going to take a responsible view of the situation. They will probably run a quick income and expenditure account with you.

Do you have enough disposable income to be able to make the monthly repayments? They will look at your regular income and set this against your regular monthly outgoings and the difference will be used to calculate if there is enough to meet the repayments on your proposed loan. Someone who moves around in the job market in a comparatively irregular, frequent and haphazard way is potentially a concern to them as this type of individual is statistically more likely to become unemployed than someone who is more measured about their employment. It's also important for them to know if you are stable in your employment. Credit History. This can be accessed with your permission, by any prospective lender by applying for your records through a credit reference agency such as Experian or Equifax. Every time that you apply for finance including unsecured loans, mortgages, tenant loans, credit cards, a record is, store cards etc made in your personal credit file.

Without your permission, the lender will almost certainly refuse your application. Clearly this is potentially very important information for a lender in the decision making process. This record will show not only how many applications for finance you have made but with each credit agreement that you have or have had in the past, it will show whether you met every repayment or went into arrears, defaulted or had a CCJ recorded against you for non repayment. It helps them to decide whether you are a high or low risk in terms of them getting their money back. It is worth being realistic when you are considering applying for a loan. If you are a high risk because you have a CCJ against your name, it doesn' t necessarily mean that you won' t be able to find an unsecured loans lender to help but it may mean that they reduce the amount of money that they are prepared to lend to you or increase the interest rate on the loan to reflect the greater risk they may face.

Never lie about your circumstances as apart from being illegal to do so, the lender will always find out. Good luck with your application. Pick a finance broker that has access to a wide range of tenant loans lenders so that they can help you to find the right one for you and you will have a far greater chance of being successful. This article is free to distribute although please retain any links that may appear in the body or the author bio. Thank you.