If you are a tenant - a person who rents their home as opposed to owning - borrowing money from a traditional lender is challenging. You may find that your paycheck is not enough to cover your expenses, let alone outfit your apartment or rented home. You look around and see you may need new living room furniture or linens for your bedroom or you may want to advance your career with classes but you just cannot afford it with your current salary. With today's economic climate, it would be wise to stay put in your current job but you cannot spare any extra money. No matter what the reason, there is help available now in the form of an unsecured loan for tenants.

Getting Approved For Your Loan

The unsecured tenant loan is different from other loan products. The most obvious difference is that you do no have to put up a valuable asset as collateral to qualify for the loan. Instead, the lender will use several factors to determine whether you are eligible for the loan and how much you can borrow upon approval. They will examine your current income, your credit history, as well as your work history. A co-signer with good credit might be needed if your credit is less than perfect, or if you have been working at your current job for a relatively short period of time. Be aware that a co-signer would become responsible for making the monthly payments to repay the loan if you are not able to do so for any reason.

Establish Good Credit History with Unsecured Tenant Loan

Due to the nature of the unsecured tenant loan, you will be charged a higher interest rate than you would with a comparable secured loan. There are several things to consider when being faced with higher loan interest rates. First, if you just make the minimum payment on the loan when it is time to repay it, you will only be paying down the interest, not the principal. If you can, try to pay more than the minimum to try to pay off the loan in a shorter period of time.

Another reason to try to pay off the loan before the end of the loan term is that the lender will charge interest and finance charges for the remaining balance every month. By having a consistent payment history with your lender, you will see your credit situation improve because they report to the three major credit reporting agencies (Experian, Equifax and TransUnion) every quarter. For every good report, your credit score will improve. This can have a substantial benefit should you try to rent a new apartment in the future as a good number of renters have spotty credit history. By being consistent in repaying your unsecured tenant loan, you put yourself in the driver's seat of your financial future, especially if home ownership is a goal that you have.

Online Loan Options

Traditional banks do offer unsecured loans however the red tape involved in qualifying, especially if you have poor credit can be quite discouraging. The best course is to turn to your home computer and research online lenders who offer this particular loan product. Online lenders can offer you lower interest rates than standard financial institutions and you are able to compare various lenders at once. The online application process is quick and secure and you will receive an answer within one to two business days, not weeks as you would with a bricks-and-mortar bank.