Single mom needs security deposit & first months rent in Peoria

(Request from Gina in Peoria, Illinois) I need $1400 to be able to move closer to my job.  I found a great place but having the security deposit and first months rent available after paying my current rent makes it very tight for a single mother.  Need it ASAP.

Dear Gina,

Moving closer to your job would bring added benefits. Your transportation costs would be lower. You may require less childcare (especially if you have ever gone over the time limit). Most important though, you would have more time for your family.

Your situation appears to be one of desire rather than need. I agree with your decision to seek a closer residence to your job. Convincing aid organizations to grant your request rather than one where someone is facing imminent homelessness may be a difficult endeavor.

If you have maintained your job for a while and have enough income, then a loan for rent deposit may be a more feasible option. These are often called signature loans, personal loans or unsecured loans. That is where the similarities end though.

Predatory loan companies are very eager to sell you high-priced loans. Such loans can carry rates of 391% APR on average. While your attorney general talks a big talk about the perils of such loans, the truth is that these dangerous loans are perfectly legal in Illinois. Consumer finance loans can be a lower cost option, but those rates can be unaffordable for many also.

I would ask that you first check with your bank or credit union to determine what type of loan rate you may qualify for. Such loans are typically available to you as long as your FICO credit score exceeds a 650. Some financial institutions have higher thresholds for lending and some have lower limits (around a 630 score). If you have never looked into a credit union, you may find that the loan qualification requirements are often more relaxed and the rates tend to be lower. You could borrow the $1,400 and repay it over the course of a year or two. The savings from transportation could offset some of this cost.

You can look into some of the rental assistance programs that serve Peoria County. While these are designed to fight homelessness, it can help for you to speak with a case manager who can look at your qualifications, make recommendations and screen you for possible benefits.

Peoria Friendship House

The Peoria Friendship House of Christian Service operates a rental assistance program which can also feature support for utilities. This program is emergency-based, meaning that it is mostly used to assist those who have received an eviction notice or disconnection warning. Call 309-671-5200 to speak with a program coordinator.

PCCEO

The Peoria Citizens Committee for Economic Opportunity (PCCEO) also provides emergency rental aid to households on the verge of homelessness. Call 309-671-3900 to speak with a case worker. Even if you do not qualify for benefits, the discussion can be helpful.

I recommend taking a few minutes to evaluate if there are any assets that you could sell to raise some of the $1,400 that you need. You could borrow the rest as long as you do not become overextended and make sure that you diligently make your loan repayments.