How to Take a Personal Loan to Rent an Apartment in the U.S.
Posted by Frank Gogol
You recently decided to move to the U.S. for a new job. Getting your visa wasn’t easy and moving into a new apartment is always a challenge. On top of that, America is one of the more expensive countries in the world to live in.
Moving to a new place in itself is already costly even if you don’t take that into account. But in America, the demand for deposits or upfront rent requirements can be high for certain apartments. And you don’t get paid your new salary until the end of your first month.
This can be tricky to manage and wondering how you’ll afford your decision or manage your cash flow can cause a lot of stress. Let us show you how you can work your way around this by getting personal loans for apartment rent.
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Can You Get a Loan for Apartment Rent?
Yes, you definitely can. Essentially you’ll be applying for a personal loan and you’ll just be using the money to help float your rent and other costs until you are able to pay it.
The great thing is, a personal loan is usually an unsecured loan so you won’t need to provide an asset as collateral and security to the lender.
Are you concerned about using credit to pay your month-to-month expenses like rent? Let’s take a look at the benefits of getting loans for apartment rent.
Benefits of Taking a Loan for Apartment Rent
Reduces the Financial Burden of Moving
Relocating is stressful. Not only do you have to pack up your whole life and adapt to a new environment, but there is always a lot of costs involved. Many times, it’s costs that you did not expect. If you take out loans for apartment rent, you don’t have to worry about working those costs into your monthly budget. You also don’t have to worry if your paycheck only pays in after your first rent is due. Your loans for apartment rent will help you absorb the cash flow timing.
Helps Build Credit in the U.S.
Generally, paying your rent each month won’t build your credit score. You’ll need to make use of rent reporting services to do that. But, if you get loans for apartment rent and repay it faithfully, it will build your credit score. Having a good credit score makes a lot of things easier.
It will help a great deal to secure future forms of credit in America as the U.S. will be able to track a credit record in your name on American soil. As it can generally be challenging for visa holders to build a proper credit score in the U.S., securing loans for apartment rent can be a great way to start building your credit score.
How to Get a Personal Loan for Rent in the U.S.
As a visa holder, you might find it challenging to get loans from traditional lenders in the U.S. This is why Stilt is such a great solution. Stilt focuses on providing loans to immigrants and visa holders. Their eligibility criteria is also much more manageable.
Let’s take a look at how to get personal loans for apartment rent from Stilt.
1. Apply for a Loan
With Stilt, you can apply online for a loan. This cuts out a lot of the frustrations of paperwork and branch visits that usually come with loan applications. After applying, you will get feedback within 24 hours. If Stilt needs more info, they’ll schedule a quick verification call with you.
These are the basic criteria Stilt looks at when you apply for a loan for apartment rent:
- Current employment or employability.
- Financial Behaviour
- Defaults, Collections or Bankruptcies.
- Credit Check or Credit Score.
You can apply for a loan for apartment rent if have one of the following visas:
- F-1 – International Students
- OPT – Optional Practical Training
- O-1 – Extraordinary Ability
- L-1 Intracompany Transfer
- TN – NAFTA Professionals
- J-1 Cultural Exchange
- DACA – Childhood Arrivals
2. Receive your Offer
When all is in order, you will receive an offer with a promissory note to sign. The funds will be transferred to you once the signed note is received. Please note it may take 2-3 business days for the money to reflect in your account. But after that, you’ll be able to utilize your loan and pay your apartment rent.
3. Start Repaying Your Loan
Then it’s as simple as repaying your loan. You can set up your autopay details online. With autopay, your monthly repayment will automatically be deducted from your account. This makes life so much simpler as you’ll never miss a repayment.
So go get that apartment and own your new job!
5 Tips for Finding an Apartment Quickly
Most people don’t have their housing arrangements in order as soon as they arrive in the U.S. This makes sense as you’ll first want to check out the area and see what your options are. It is, however, not realistic to stay in the B&B forever, so here are a few tips on how you can find an apartment quickly.
1. Set a Realistic Budget
You have to keep in mind that your cash flow might be difficult for the first few months as you’ll probably be required to make lots of once-off purchases at the start. Most people need to buy furniture and decorate from scratch.
So, set up a proper budget and make sure you’ll have enough cash on hand after you’ve paid your first and last month’s rent to deal with the unexpected costs that come with moving.
2. Check Roommate Listings
Renting an apartment with roommates can be a great idea. Generally, shared apartments are cheaper per person when compared to other apartments such as bachelor apartments. There are helpful services you can use that connect people looking for a roommate and people in need of an apartment.
3. Reach Out
Make a move. Put some feet to your search efforts. Contact people and agents for apartments that you are interested in renting. An apartment is not going to come to you. You’ll need to go find your best option. Also, climb into the network you’ve built so far and ask your colleagues at your new job if they know about places opening up.
4. Work with a Professional
Making use of professional help is no shame, it can actually be a great idea. People who know the area you are interested in will give you great advice on where to look and what to expect. They’ll be able to point you in the right direction. Even though you’ll probably have to pay a small fee for their services, this may save you lots of time, and maybe even money, in the long run.
5. Stay Organized
Find an efficient and productive way to keep track of your different options. Make pros and cons lists that can help you to eliminate the apartments you want to avoid. It will also help your budgeting efforts. If you do this, you’ll be able to keep proper track of your prospective apartments’ rent and possible utility bills and weigh your options much easier.
Happy Apartment Hunting
Moving into your new apartment on your new life journey shouldn’t be a burden. Sure, it comes with a lot of stress, but you’ll be able to take care of at least the financial stress by taking out a loan for apartment rent. This exciting new season of your life awaits. Don’t take the unnecessary stress with you. Get a loan for apartment rent today!