Loans for paying rent
It is possible to get a loan to pay rent when facing a temporary financial hardship. Learn more about the process and lenders that offer money. While all charity and government rental assistance programs should be applied to first, in an emergency it is possible to borrow money to pay for housing costs. Find how to get rent assistance loans.
Not only can a bank, credit union, or online website be used to borrow money, but some non-profits also provide emergency loans that can be used to help pay rent. In general, applicants will need some income and going through a short term financial crisis in order to get funds. But each program will vary and find details getting a loan to help pay rental costs.
Get assistance to pay rent using a loan from a charity
Several non-profit and charity organizations provide rental assistance programs, and some many offer loans to low-income or struggling families. It is more likely for a tenant with bad credit, or even no bank account, to be able to get a loan from a charity than a more traditional lender. These organizations may offer a few dollars as a form of emergency rent help, and while often a grant is issued, some will give a loan instead. Or it is possible to tell the charity the money will be repaid.
Jewish Federation of North America offers loans as part of the JFLA program. The funds will be interest free, 0% APR. In addition, money is offered to qualified applicants regardless of their religion or faith. The interest free loans from the JFLA service can pay for rent, security deposits, storage fees and other bills. Learn more on Jewish Free Loan Association programs.
United Way loan programs and referral services are offered in all local communities. The national non-profit organization has information on low-cost lenders, rental assistance programs including places that have hardship loans, housing and financial resources. There are also programs such as ESG funds for borrowers with bad credit. More on United Way rent help.
Other charity loans can be provided to individuals, including for rent. There are churches such as Catholic Charities, online lenders including Kiva, community action programs and other places that will lend money to lower income families or individuals for emergency housing costs or other bills. Locate interest free charity loans for borrowers.
Loans from banks, credit unions or online lenders
While all local and national non-profit organizations should be used first to get rent help, whether a loan or grant, other lenders can be an option. For people who may not qualify for grant money or government aid, traditional financial institutions (banks) or online lenders could be an option.
Online lenders and app companies offer funds, including with it possible for unbanked or people with bad credit to get a loan to pay their rent. Companies like Upstart, LendingClub, SoFi, and Prosper allow individuals to apply for personal loans, with the money normally provided within a couple business days. They offer loans quickly with varying interest rates based on credit history. Peer to peer loans can also be effective for tenants, and find how to get peer to peer loans.
 Banks and even more likely local credit unions provide funds. A credit union is generally a lower interest rate and will provide loans to help teachers, members of the military, and other employees pay their rent – if their employer has a partnership with a credit union. There are even programs such as Payday Alternative Loans (PALs). Find details on credit union Payday Alternative Loans.
Rent assistance using a loan can also be for applicants with poor credit scores. There are some online, tech companies that offer funds, including in a peer to peer concept and other options. They include companies such as SoLo Funds and others. Learn more on borrowing money from SoLo Funds.
While an option, lenders such as Cash Advance companies, Pawn shops, and others can be an option for a loan to pay rent or other bills. However, they come with very high risk. As the interest rates can be very high – 20 to 100% or more. These are considered payday or “predatory” lenders and borrowing money for a bill such as rental costs is very risky with many downsides. Learn more on hardship loans near you.
When applying for loans at a bank or lender, it's important to compare options, including interest rates, origination fees, and repayment term to find the best deals and eligibility criteria. Make sure the money can be repaid in short order, and anyone that has no income should not borrow pay to pay their rent.
Local rent assistance programs that offer loans
Select a state below for rental assistance programs in your area. Each state, county, and city have local charities, churches and government programs, such as social services, that help low-income tenants. They focus on rental assistance programs and eviction prevention. While generally they offer vouchers or grants, applicants can request a loan and/or make an offer to repay the money.
That type of approach may help an applicant get the cash they need to pay their rent. As a charity, if they have an offer from the applicant to repay the funds, may be more likely to approve the assistance. That approach can also help people with low credit scores.
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Conclusion
Taking out a loan to pay the bills, whether rent or something else, should always be a last resort and it comes with potential downsides. Always read the fine print of any agreement and be cautious. An emergency loan to pay past due or future rent should be considered a last resort due to taking on debt and potential interest. Only borrow money in a short-term hardship and if the loan will be able to be repaid in a very short term frame using future income.
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