The recent recession and the resulting economic conditions have made it difficult to get loans for non-homeowners and bad credit. In order to prevent the risk of defaulting financial institutions are using the customers credit scoring. Poor credit will make you ineligible for loans form banks. But there are other ways to borrow money, these non-mainstream options don't require credit checks and offer loans for tenants in cash.
Payday Cash Advance Loans
If you are finding it difficult to get a loan because you lack collateral then you can try the payday cash lender for unsecured loans. The finance charges for these loans range from 15 to $30 for a loan of $100, according to the Consumer Federation of America. The eligibility for such loans are not based on credit scoring, if you are an full-time employed American and at least 18 years of age then all you need is a checking account and two identification forms to get the loan approved. You can avail a bad credit tenant loan within 24 hours if you meet the requirements. The lender will ask you to provide a post dated check as well; the date must be the day you get paid. The check is used by the lender for the total amount including the interest.
Secured Pawn Shop Loans
If you are unemployed and cannot get a payday cash loan then you could try a pawn shop loan. Collateral such as gold, automobile, silver or a watch is used to get a secured loan from the pawnbroker. You can borrow 30% to 50% of the assessed value of the collateral. The lender will keep the item till you replay the interest and principal. Tenants' bad credit loans are provided in cash.
Credit Union Loans
Borrowing money from a credit union is a good option for those looking for an alternative non-profit source of unsecured loans. Only members of the credit union are eligible to get tenant loans for bad credit. They offer other financial services as well.
Joining a credit union is possible only if you share something in common with the union, this could be employment, religion or locality. You can also get in if you know an existing member. The charges involved vary and only those who are in a position to repay the loan can get a fast unsecured loan.
Consequences of Defaulting on a Bad Credit Tenant Loan
Not able to pay back a bad credit tenant loan will allow pawnbrokers to sell off your collateral to clear the outstanding. Defaulting on a payday cash loan could lead to accumulation of higher interest and other charges and your account will be turned over to a collection agency. The agency will proceed to collect the complete balance from you. Non-homeowners must take such loans only if you have the means to repay them on time.