Can I get a consumer finance loan for rent?

Your new landlord wants a full month’s rent upfront, plus an extra month or more to put towards your security deposit. When money is tight it is only natural to ask, can I get a consumer finance loan for rent or security deposit?

The short answer is yes, a consumer finance loan can provide the money needed to move into a new rental home or apartment. While expensive, there are worse forms of financing to come up with the move-in cash requirements of your new place.

The expected interest rate for most consumer finance rental loans is about 25-32% APR, depending on the laws of your state. It could be more than 10 times that rate for a payday loan (391% or more).

The problem with taking out a finance company loan is that it adds another $100 or more to the monthly bills. When living paycheck-to-paycheck, an extra bill would cause a negative budget. This can cause real problems when trying to come up with the monthly rent, plus car payment, insurance, utilities, gas and groceries.

There are several options for taking out consumer finance company loans. Some smaller finance companies are usually the worst option, since they tend to be less consumer-friendly. The larger finance companies tend to be the most closely regulated shops, meaning you are less likely to get taken to the cleaners.

SpringLeaf Financial Services (formerly American General Finance) is one of the national lenders that provide consumer finance loans for rent. There is typically no collateral requirement, and loans can be taken out for a couple thousand dollars to help you get moved in.

OneMain Financial (formerly CitiFinancial) is another popular consumer finance company. Like SpringLeaf, there are many community locations that are conveniently located.

While applicants may apply for these rental loans online or over the phone, most customers prefer to go into the local office so that they can talk with one of the loan representatives in person. It provides the option to meet with a local person in case any changes to the loan agreement are needed at a later time.

There are a few situations where a consumer finance loan may be used for rent. It could help a family during a transitional period where a move coincides with a job loss. As long as income is quickly restored, then it is possible to utilize a consumer finance rental loan to help a household satisfy the move-in cash requirements of a new landlord.