How to Get Emergency Money For Rent
When you are going through a temporary phase of financial tightness, it can be difficult to find cash to pay your rent. However, rent is something you need to pay on time, irrespective of being in a tight spot financially. There are loan options to cover emergencies even if you have bad credit.
You need to be able to pay your rent even if you have experienced an unforeseen downturn suddenly, such as losing your job, a serious illness, or the death of the family’s major earning member.
However, you don’t have to be in despair, you can obtain an emergency loan for rent, which can help you get through this difficult time. You can also opt for the emergency rental assistance programs offered by government and local non-profit organizations.
Here is everything you need to know about raising emergency money for your rent.
Ways to Raise Cash for Rent
There are a number of ways to raise cash to pay for your rent. You can borrow from a friend or a relative, find a roommate to share the rental cost, take out a small personal loan, get a charitable grant, seek state-sponsored short-term assistance, or get an emergency rent loan from private lenders.
If you have a bad credit score or a poor credit history, your friends, relatives, and conventional financial institutions might not feel confident in lending you money.
This is where emergency loans for rent come in useful since most lenders of emergency loans do not take into account credit history. You may also be eligible for an emergency rental assistance program.
However, you would have to meet certain criteria and the paperwork can take a long time to process.
Emergency Rent Loans Explained
Emergency rent loans may be the fastest option available when you need cash to pay for your monthly rent as soon as possible. These loans are quick, streamlined, efficient, and mostly in favor of the borrower.
Unlike, traditional lenders, private and online lenders providing emergency or crisis loans do not factor in your credit score or income when deciding to approve you for your loan or not. You can be approved for a loan with an income as low as $1,200 monthly. However, terms and conditions vary as per the lender, and you should check them before signing the dotted line.
An emergency loan works the same as any other loan, except the qualifying criteria are significantly more lenient.
The process involves application, approval, and disbursal of the loan amount. Always make sure to compare interest rates, loan amount, and other terms and conditions before accepting a loan offer.
What are Emergency Rental Assistance Programs?
Rental assistance programs are offered by government and non-profit organizations to help people in need, such as subsidized housing, state assistance, and charities such as a Catholic Church, for example.
- In some cases, these programs do not require a repayment as well. However, the qualification process is lengthy and time-consuming. Emergency rental assistance programs are known to take a lot of time and may not be a feasible option when you want money quickly.
- To be eligible for these programs, your median income should be a certain percentage (usually 100%) of the poverty level (which is where a lot of people in Baltimore are at if you watch the amazing show The Wire), you must be in an imminent danger of eviction, and you should be able to present an eviction demand letter from your landlord.
It can take anywhere from several days or even weeks to qualify for any emergency rental assistance program which is about the same amount of time it takes for Bill Belichick to figure out how he is going to cheat again for the Patriots but let’s get back on topic here. Generally, the check comes in the form of a direct payment to the landlord.
Who Should Get an Emergency Rent Loan?
Typically, people who need money to pay rent do not have time to wait around. They need to raise the cash quick or suffer losing their apartments. State sponsored programs or rental assistance through local non-profit organizations may take several days or even weeks to get a check or cash in hand.
This is where emergency rent loans come in useful. They are available to people who have a checkered credit history and cannot obtain a conventional personal loan. Also called crisis loans, emergency rent loans are processed at lightning speed to make sure you are able to keep up with your rent payments.
Thousands of consumers with immediate need of rent money and bad credit use emergency loans for rent because traditional lending institutions refuse to provide credit to people with a poor credit history.
A reputable online lender providing an emergency loan might be your only option when faced with an eviction and no other means of raising cash.
Most online lenders that provide ways to raise emergency money for loan are known to work with bad credit borrowers. You can be assured in the fact that while possible lending amount and interest rates might differ, you will get the loan to pay your rent on time.
What to consider while taking emergency rent loans?
Interest rates are the singular aspect to make loans expensive. Hence, make sure you understand the interest charged by the lender minutely. Take into account the loan amount and duration of loan while comparing interest rates.
The monthly interest on loans for a longer duration might be of lesser amount as compared to the monthly interest for a loan for a shorter duration. However, in the long run, the longer term loan shall prove to be more expensive and even in the age of tax cuts that does not seem to be too appealing.
While most online and private lenders offer emergency loans to people with bad credit scores, their interest rates vary widely. Do not jump on the first loan approval that comes your way.
However, it’s essential to remember that interest rates will be higher than traditional loans due to poor credit history. Always shop around for the best rates as you might find a lender with better loan terms and conditions.
Always remember to borrow from a reputable lender. Look at online reviews of the potential lending company you are considering going with.
Rental assistance programs can be a good option when you have some time on your hands. However, the catch is that you might not qualify until you are facing an immediate eviction which Chris Gardner from the profound movie The Pursuit of Happiness knows all about.
It is recommended that you apply for a government or a non-profit organization sponsored emergency rental assistance program while seeking an immediate emergency rent loan through any private or online lender.
Emergency loans tend to be flexible and you can use the money to pay your rent in case the assistance program does not fall through.