Loans to Help Cover Rent | Up to $2500 Fast
Get a loan to help cover rent. You could qualify for up to $2500, it only takes a couple minutes to apply and find out if you have been approved. If you have found this page then it is likely that this months rent is due and your bank account is telling you some bad news. Our lenders offer installment loans that are direct deposited to your account. So you could get a loan to help cover rent by the next business day. There is no fee to apply and you will know in the next few minutes if you have been approved and possibly get a loan to cover rent expenses.
Get a Loan to Cover Rent | Up to $2500
Should You Go to the Bank for a Rent Loan?
Bank loans are often the first type of loan a person considers when they need a cash transfusion to cover rent. The bank can be a good option if you have the time, credit score, and relationships to make it happen.
Whether it's to purchase a new vehicle, a loan to help cover rent, or fix a cash flow issue in your business, there are a lot of factors to consider when taking out a loan. One of the biggest factors is choosing which institution to borrow from.
Before deciding to go with a traditional bank, weigh your options. Look over these 7 disadvantages of bank loans and evaluate your choices.
1. The Time Factor
The process of securing a rent loan from a bank is generally lengthy and heavily bureaucratic. Who knows how many busy bank employee staff handling your paperwork will travel through before you have your loan approved? Unless you have a line of credit already setup, it's likely going to take a while before you are getting answers.
It's not uncommon for a loan application to be delayed. Sometimes, it happens because some employee missed credit problems that the lender wants to take a closer look at. Other times it's because an employee made a mistake in the application process.
If your credit score is anywhere under an astonishing 720, it's likely that you will be faced with these same frustrating delays, and anyone who's needed money quickly to help cover rent expenses knows how awful that wait can be!
2. The Loan for Rent Qualification Process
As previously stated, a lender will probably give you the run around if your credit score is below a pristine 720. About 20% of small business owners face rejection when trying to secure a loan. That's because one of the biggest disadvantages of bank loans are their steep requirements for qualification.
Additionally, the bank will look deep into your income behavior to determine the likelihood of you being able to repay the loans for rent. Often, they will expect to see far more than the ability to repay, just to protect themselves.
Not only will your income need to be high, but it must be consistent over a long period of time. This, combined with the high credit score required, means you essentially need a perfect portfolio to be approved. Obviously, the people who need a loan to help cover rent most usually don't fit this profile.
This is one of the huge disadvantages of bank loans. Luckily, there other many options outside of bank loans that those with lower credit scores use all the time. In these cases, non-bank loans are the way to go.
3. The Risk to Your Credit
While making loan payments on time can improve your credit, everyone misses a payment every now and then. Life is unpredictable, and when some misfortune occurs, it usually affects our wallet. With a bank loan, you can't afford misfortune. Also just the application it self could hurt your credit. The application on WireLend will not affect your credit score.
Depending on the amount you need, it could create an unfavorable debt-to-income ratio. That does not look good to future lenders. Also, carrying a high debt balance will negatively impact your credit as well.
And everyone knows what happens if you can no longer afford to pay the loan back - bankruptcy. That can upend your entire life. It takes years and years to recover from such a financial event, so it's best to avoid the possibility altogether.
4. The Collateral Factor
Some borrowers may look into using collateral to help them qualify for a bank loan. If you have some valuables or property that's worth enough, this is a viable option.
Of course, it puts you at substantial risk. If this is an emergency loan to cover rent or your business is struggling, it's a little like betting your financial future when you're down at the craps table. It can be a gamble.
In the worst case scenario, you bet your business, but are unable to repay the loan. You will lose everything. Again, you do not want to see yourself and your family go through the hardship of filing for bankruptcy. This is one of the serious disadvantages of bank loans.
5. The Lack of Flexibility
On the other hand, if you're having a stroke of good luck and want to repay your loan back early, you may not see any of the benefits you think you will.
Bank loans are absolutely inflexible, meaning that not paying on schedule, even if it's early, may have you facing financial penalties.
Meanwhile, non-bank loans to cover rent don't have the same regulations and can offer you a flexible range of rates and fee. Like an unsecured installment loan from one of our lenders. Apply today to find out if we can get you approved.
6. The Loan Payment Struggle
This inflexibility also means that if, for whatever reason, you are unable to repay the rent loan, you will not be able to alter the terms of the loan whatsoever. There's very few nice lenders that you can sweet talk into giving you a few extra months.
Compared with other loan methods, strict repayment structures can be a big disadvantage to the borrower. Late payments may mean you saved your assets, but you'll still get a hit to your credit score.
7. The Loan Repayment Variable
If you're already cautious about the difficulty of repaying your loan to help cover rent, it's best to avoid variable rate bank loans altogether. These loans will have your payments fluctuating with the market.
If you can't count on the amount of your payment at the end of each month, it can make financial planning that much more difficult. No one can predict how high your variable rate will get, but it can keep going up and that is scary. This is especially dangerous if you aren't planning to pay off this loan as quickly as possible.
Loans to Help Cover Rent | We Make It Easy
At WireLend, we've been helping consumers and business owners alike, all over the United States, secure the money they need, when they need it. Our lenders offer unsecured installment loans that could help you cover rent this month. You repay the loan over the following months on a set schedule, each payment is the same size. If you are approved you will instantly receive a loan offer from one of our direct lenders.
Contact us today and get one step closer to making your financial life a bit easier.
Disclaimer: WireLend is not a lender and makes no guarantees you will be approved. All loan terms are between you and the lender. Must be 18 to apply.