Grants For Small Business » unsecured loans

The Advantages Of Unsecured Tenant Loans

Gary Johnson — Thu, 11 Feb 2010 21:32:25 +0000

The unsecured tenant loan is the answer to all us long term renters who believe that buying a home just ties us down. For years people have used their homes as their own personal banks. Now they are completely underwater in their mortgages hurting the banks badly. This has given a revival to the tenant loan. Instead of giving money to the kid out of college with a decent job and a huge mortgage, the banks have now noticed that the person who has faithfully renter for twenty years is much more a stable and worthy of giving money to. So why would you want to take advantage of unsecured tenant loans?

To Start A Business

Tenant loans are very advantageous for startup entrepreneurs. A business is always a risky proposition, but if you compounded the stress of losing your home if your business fails it can almost be too much to handle. This fear prevents many good ideas from ever coming to light. Now the banks have a new way of trusting you for a loan without you having to put your life on the line. Only your credit will be hurt if you default, not your property.

Pay Off High Interest Debt

Unsecured debt is generally high interest because only a vague number of your general credit worthiness could be used in determining interest rates. With a tenant loan your rental history is taken into consideration. People who have paid rent consistently for years show a higher aptitude for paying off their debt than many home owners because they are consistent. You may be able to transfer some high interest rate credit cards onto your tenant loan both lowering the interest and spreading out the term length.

Generally, the advantage to this type of unsecured loan is the fact that the lender gets to see more good in your credit worthiness making them feel more secure and you get more benefits.

Why You Should Avoid Fast Cash Loans

admin — Thu, 11 Feb 2010 20:20:30 +0000

Fast cash loans are fast for a reason. The reason is the lender intends to make a boat load of cash off of you as quickly as possible. The cash advance loans industry is geared towards people who don’t do the math living day to day. I understand that this probably isn’t your situation, but this is how they get you started. Here are some of the main reasons you need to avoid the industry all together.

Reason 1: High Fees and Interest Rates

The fast cash loans, as known as payday loans, depend on the fact that $20 doesn’t sound like much to get $100 right now when you need it. However, if you do the math on fast cash you’ll find you are paying between 100% – 300% interest per year. Usually, the person finds they can’t afford to pay back the loan on their next paycheck so they just keep paying from loan to loan. Eventually, you find you really are paying that much interest on this one time loan. You become trapped.

Reason 2: Lose Your Ability to Budget

Having fast cash as your get out of jail free card gets you into many financial bad habits. People who use fast cash tend to spend their money more impulsively and live more on the edge. Unfortunately, most eventually cut it close one too many times and end up using fast cash consistently (see Reason #1.)

Reason 3: Unsavory Practices

Generally if you lie with dogs you’ll come up with fleas. The premise of most fast cash loans is you must write them a bad check, then you’ll get your loan, then if you have problems they’ll threaten to press charges for writing bad checks. It’s all over not good karma. Basically what I’m telling you is not to do business with these people who assume you’re stupid and that they can push you around. If you find yourself in financial trouble and contemplating there use, get some unbiased money advice to get you back on track.