Should I Use a Payday Loan for my Rent Deposit?

If you are moving into a new property then you will need to pay a deposit to your landlord. This is to secure the property and will tend to be a lot higher than your normal monthly rent as it will cover a number of things, such as covering the cost of any damage you cause to the property. This means that it can be difficult to find that quantity of money. If you are leaving a property, you may be able to get your deposit back from there, but it is likely that you will be able to get it in time as you may need to secure the new property before you old one is inspected and you get the deposit back. This means that you will need to fid the money before getting any back. There is also a chance that you may not get your deposit back if your landlord is not happy with the condition that you have left the property. If you are moving into rental property for the first time, you will not have a deposit to be returned anyway. It is therefore likely that you will need to fid the money needed for the deposit and there are many ways that you will be able to finance it. One way that you might consider is a payday loan.

How does a payday loan work?

A payday loan works in a different way compared with many other types of loan. This means that you will need to make sure that you understand how they work before you decide whether having one is the right thing for you to do. You will need to be aware that there is usually just one lump sum repayment which will take place on your next pay day. This means that you will need to make sure that you have enough money available to pay it. If you are relying on getting back you deposit from your previous rental property in order to use as a repayment then you will need to check the dates carefully and make sure that you are confident that it will come on time. You may need to have a back up plan, thinking abut where else you might be able to get the money from if you need it. You will have just been paid as the payment will go out on your pay day. However, you will need to be sure that there are not too many other direct debts going out as it may not leave enough money to cover the repayment or even if it does, there may not be enough to cover all the other expenses.

Will I qualify for a payday loan?

It is worth making sure that you will qualify for a loan of this type before you rely on using one. There is no credit check done, so that means that you do not need to worry if you have a poor credit score as it will not make any difference to whether you get approval or not. There are actually very few restrictions and so this will mean that there will be very few people that do not qualify for the payday loan. You do need to have a checking account as you will need to have the loan paid into it and there will be a direct debit set up from it which will repay the loan. You will also need to have a regular income so that the repayment can be set up to leave your account on the day that you receive your pay check. Other than that you will need to be an adult so that you can legally borrow money and you will need to be a US resident.

Can I use it for a deposit?

There are also no restrictions on how you spend the money that you get from the loan. This means that it is quite possible to use it for a deposit. Of course, it is really important to make sure that it is the right thing for you to do. You need to think about all of the options that you have and this will allow you to know whether a payday loan will be the best option for you. You need to consider other borrowing options as well as whether you can manage without borrowing. Consider all sorts of factors such as the cost, how well you will manage the repayments and how you will feel about being in debt. You may feel that it would be better to wait and save up, but it may mean that you will lose the property you wanted and have to choose another one. So, this will depend on how desperate you are to move and how you feel about that particular place and if you are prepared to give it up.