Most apartment landlords require a security deposit plus at least the first month of rent upfront to protect the property from any damage beyond normal wear and tear and to guard against missed payments at the end of the lease term.
Then, pet lovers often need to advance even more. How can you afford to move into your new apartment when you have little money in the bank?
Personal loans provide fast access for qualified applicants, while student loans help college attendees with off-campus housing. Tenants with lousy credit might consider allotment, payday, or title loans.
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Loans To Move Into An Apartment
Personal loans work well when moving into an apartment to cover many upfront costs because they are unsecured. You do not have to pledge collateral, something many tenants lack because they are renters.
Requesting an appropriate amount is the key to quick approval. Only borrow what you need to cover costs.
Moving Expenses
Personal loans can help you move into a rental apartment when you lack the cash to pay for a trucking company to carry your furniture and other belongings to your new unit.
Request a specific loan amount after estimating your moving costs, which depend on distance, the apartment size (number of rooms with furniture), and whether you hire movers or do it yourself.
Tenant Expenses
Personal loans can make moving into a rental apartment easier by providing the cash needed to cover one-time setup charges that kick in shortly after a new tenant signs the lease.
Request a specific loan amount after totaling the various charges many tenants face at the beginning of their lease.
- First month’s rent
- Application fee
- Renters Insurance
- Gas and electric hookup
- Cable and internet installation
- A pet deposit, if applicable
Loans To Help With Rent & Security Deposit
The best strategy for getting a loan to help with rent and an apartment security deposit hinges on your borrowing qualifications. Many property managers check your credit report and score when deciding how much money to hold in an escrow account.
Security deposits protect the property owner’s interests from two risks.
- Damage to the apartment caused by the tenant
- Missed rental payments leading to an eviction
Good Credit
Security deposit loans are easier to get when the tenant has good credit.
- The amount needed is smaller because property managers are less concerned about future damage and delinquency.
- Lenders are more likely to approve applicants with a positive payment history on their consumer reports.
Personal Loan
An unsecured personal loan is a popular choice for helping with an apartment security deposit for tenants with good credit because the borrower repays the lender in monthly installments, making the loan easier to afford.
Request a specific loan amount after the landlord presents the sum they will hold in escrow to protect against damage and default. Only borrow what you need to satisfy the lease requirement.
Student Loans
Young adults with good credit attending college can use student loans to fund security deposits and rent for off-campus apartments. Sometimes, you can borrow more money when the government encourages specific behaviors, like getting an education.
Student loan refund checks issued by the bursar’s office at your school can fund these living expenses. The Department of Education (federal) or bank (private) sends the money to your college first.
Your college or university will subtract money for tuition, fees, meal plans, etc., and refund the remainder to you for other educational expenses, such as room and board.
Bad Credit
Getting a security deposit loan is more challenging when the tenant has bad credit. Therefore, you may need to consider alternatives.
- The amount needed may be more significant when the property manager is more concerned about future damage and delinquency.
- Lenders are less likely to approve applicants with adverse payment histories on their consumer reports, leading to low scores.
Government programs that help with the security deposit and first month of rent might be a better approach. If eligible for assistance, you may need to borrow less money.
Title Loans
Title loans might help with apartment rent and security deposits for tenants with bad credit who have significant equity in their cars. When the contract is secured, you can borrow more money.
A title loan is a secured contract where borrowers use the vehicle title as collateral. Lenders are more likely to approve applicants when they can repossess the car should you default.
Allotment Loans
Allotment loans might fund rent and security deposits for people with bad credit who do not have sufficient vehicle equity. Sometimes, you can borrow more money when you agree to repay the lender before yourself.
Payroll allotment loans for bad credit help your approval odds because you give the lender the legal right to take money directly from your paycheck.
Payday Loans
Payday loans are a last resort for tenants with bad credit to raise money for a rental security deposit. They work best if you are moving from another apartment. However, you must be confident that your previous property manager will not find significant damage.
Payday loans are short-term cash advances due in two to four weeks, coinciding with your employer’s payroll cycle. The average 15% origination fee is affordable, provided you pay it back immediately, but it snowballs if you don’t.
Pay off the payday loan when your previous apartment releases your security deposit. Avoid rolling it over and incurring a second or third 15% origination fee.
