Tenant Loans over Credit Card Cash Advances

Unemployment is on the rise, and a lot of average wage earners are losing jobs at an unprecedented rate. In the worst cases, even basic human needs, such as decent shelter, are becoming increasingly difficult to meet. In everyday terms, it is now much harder to “pay the rent.” The quickest way to fix this is to utilize readily available credit lines, i.e. credit card cash advances. However, there exists a better alternative – tenant loans.

These loans work better than credit cards in 3 respects: Lower interest rates, friendlier repayment terms, and its distinction from revolving credit lines (i.e. credit cards).

Based on one’s credit score, these loans are offered at yearly interest rates ranging from about 7% to 18%, with a majority at 10.9%. Meanwhile, credit card rates range from 6% to as much as 37++%, with most rates ranging from 15 to 20%. Thus, on the average, a debtor who acquires this particular type of structured loan will have to pay less in the long run, compared to getting a cash advance from a credit card account.

Tenant Loans have more debtor-friendly repayment terms [7++ years] than credit card cash advances. Cash advances, though not containing strict repayment deadlines, have very stringent balance payment schedules. An exorbitant percentage of the current balance is typically required by credit card companies for a debtor to maintain good standing. With the former option, monthly income can be more flexibly budgeted as only a drastically smaller part of it will be required to service debt.

Furthermore, being a separate credit entity, these loans will free up one’s credit cards, thereby effecting two-fold benefits: cards may now be used for other more relevant expenses, and it minimizes these cards’ average daily balance. The reduction of a card’s average daily balance may seem to be a purely cosmetic benefit, but it can actually help improve one’s credit risk score.

All in all, tenant loans, as compared to credit cards, are more responsive to the immediate need for rental payments. Basically, it is saying than one can get the same thing for much, much less.