Loans for tenants with bad credit are available from a number of specialist loan companies.
Tenant loans for bad credit borrowers are likely to be more expensive than the same loan for someone who owns their own property and can therefore take a secured loan. As there is no security of a property to be offered, bad credit tenant loans must be taken as an unsecured loan and as a result of this, when it comes to bad credit loans tenants may find it harder to be accepted for the loan they require.
Loans for tenants with bad credit will usually only be offered for smaller amounts on money, over a relatively short term, which will increase the monthly cost of a tenant loan for bad credit. If an applicant has a particularly poor credit rating, through large amounts of arrears and County Court Judgements (CCJ's), they may well be rejected for a bad credit tenant loan altogether, as the risk may be too high for the lender to take on.
