Originally posted on https://bonsaifinance.com/move-in-ready-5-reasons-loans-with-no-credit-check-are-perfect-for-first-time-renters/
America is largely a nation of homeowners. For most people, though, the journey to homeownership begins with renting. It’s why there are over 76 million renters in the country — a record.
As a first-time renter, you’re certainly looking forward to life as a tenant. Leaving the nest is an exciting time. However, this excitement can quickly turn into frustration, especially if you don’t have your finances right.
What are you to do?
In this article, we’re telling you how loans with no credit check can help make your first move in smoother.
1. No Dings on Your Credit Score
Landlords and property managers firms typically check prospective tenants’ credit standing, and for good reason. No one wants to let out a property to a person who lacks the financial capacity to pay up the rent dutifully.
If you have bad or poor credit, many landlords will turn down your application. And if you’re are a first-time renter with a wobbly credit score, you don’t want to take a step that can see it tumble into the red territory. Applying for a bank loan is a sure way to put your credit at risk because the lender will make a hard inquiry on your credit report. Such an inquiry negatively affects your score.
This is where a no credit check loan comes in handy.
Lenders of these loans don’t access your credit report, so there is no ding on your score. If your score is on the borderline of bad and good, you’re assured it will remain good, which is what landlords want to see.
2. Loans With No Credit Check Can Improve Your Credit!
Taking a bad credit loan to build credit. Doesn’t make much sense, right?
Well, the fact is such loans can help give your score a boost, and here is how.
You see, your credit score is a brief summation of your financial history. If you pay your bills on time and service your loans dully, you’re likely to have a good or excellent score. But if you do the exact opposite – slack on your bills and default on your loans – you credit will tank.
When you take a no credit check loan and pay it back on time, credit reporting agencies take note and reward your sense of financial responsibility with a better score.
So if you’re a prospective first-time renter with a credit score no landlord will want to look at, consider these loans an ideal opportunity to rack up more credit points.
3. No Need to Find a Cosigner
Having bad or poor credit doesn’t necessarily keep you from finding a rental. At least not if you can find a cosigner.
For starters, a cosigner, in the context of renting, is a person who agrees to pay your rent in case you’re unable to. If your credit score doesn’t please a landlord, they can ask you to show up with a cosigner.
Wait, don’t breathe easy yet!
We know you’re probably thinking “Ah, getting a cosigner shouldn’t be a problem. I have many friends or relatives who will agree to cosign my rental agreement.”
Sorry to break the bad news. Finding a cosigner might not be that easy. Most people are now fully aware of what they are signing up for when co-signing a loan or rental agreement. They stand to lose money in the event of a default, and if they don’t pay up on your behalf, their credit will take a hit.
In this economy, not many people are willing to take that risk. Plus, given the fact that you are a first time renter with no rental history, don’t be surprised if potential cosigners turn their back on you.
The good news is a no credit loan can come to your rescue. It will help you build your credit and pass landlords’ credit checks.
4. No Usage Restrictions
You want new drapes for your new house. Perhaps you’re planning to give the walls a fresh coat of paint. You want an entertainment unit, not forgetting basics like furniture and kitchen appliances.
These things cost money.
When your budget isn’t looking up, you have the option of taking out a loan. The problem with most loans, though, is that they place restrictions on how you use the funds. When applying for a regular bank loan, for instance, you must state the purpose.
Is a traditional bank going to fund your move-in budget? Your guess is as good as ours!
What you need is a no credit check loan. Lenders don’t place restrictions on how to use the money, so you can buy whatever will make your first rental house feel like a home.
5. Get Money Fast
Sometimes you don’t get the luxury of taking as much time as you want to move into your first rental. Perhaps you’re fresh off college and just got a job in another city, or your parents are pushing you out of the nest.
Regardless of your situation, the common ground is you need money, and you need it fast.
You could approach a traditional lender for a personal loan, but those take ages to approve an application and disburse the money. But with no credit check loans, you’re guaranteed quick approvals.
As long as you can prove that you’re able to service the loan, you could have the money by the next business day. Your plans to move won’t suffer unnecessary delays.
No Credit Check Loans and First Time Renters: A Perfect Match
When it’s time to begin life as a tenant, your primary concern should be finding an ideal house, not looking for money. However, things don’t always pan out as planned, and you can easily find yourself needing loads of cash.
But worry not. We have demonstrated how loans with no credit check loan will help. Now your task is to find a lender.
Wait! You don’t even have to go through the trouble of finding a suitable lender. Just come to us and we’ll help you find a preferred no credit check loan.