Credit for security deposit.


When renting a new apartment, a deposit must normally be paid. In general, the deposit is two to three months’ rent. It is used by the landlord to cover any damage a tenant has left when moving out.

However, it is not possible for all tenants to pay an additional two to three months’ rent in addition to their obligations. Moving costs and renovation work on the apartment must also be paid with the rent deposit. A loan is often taken out for a deposit, so that all costs associated with moving can be paid for.

Loan for the rental deposit

Loan for the rental deposit

Most of the time you go to your house bank which requires certain conditions for a loan for a deposit. First, the applicants must be of legal age. He must be able to prove a sufficiently high and regularly incoming income with a certificate of earnings. The regular receipt of money ensures the repayment of the loan. The property he is moving into cannot be counted as property, the customer only rents it.

The creditworthiness is therefore checked closely, including the inspection of the Credit Bureau. If negative entries are noted there, it will usually result in a loan rejection. For example, a negative entry could have resulted from a canceled loan or unpaid bills. In any case, they are proof that the customer’s payment behavior leaves something to be desired. On the other hand, anyone who has paid their loans on time is practically showing their solvency.

The possibilities

The possibilities

There is also the possibility of obtaining a loan without having access to Credit Bureau. There are special providers who offer the Credit Bureau-free loans, which are also not entered in the Credit Bureau. The loan for the deposit is usually not made as a transfer to an account, so the way of the loan is not understandable and the creditworthiness remains. A loan for the deposit can be applied for with various forms of credit. For example, a consumer loan can be applied for. Almost all banks offer this form of credit on different terms.

In addition, an instant loan can be chosen. The advantage of this is that the money is quickly in the account, it is advertised with 48 hours. To what extent this is feasible is up to the bank. The loan amount is limited, which means that 5,000 to 10,000 USD are awarded, which should be sufficient for a deposit. An instant loan has worse conditions than a normal loan, the interest rate is significantly higher.

Those who do not have sufficient equity because the new apartment still needs furniture should not apply for the loan amount too small. If the money is not enough, another loan would have to be applied for, which could prove difficult. The loan is only granted if the creditworthiness is appropriate. Those who receive Cream Bank find it difficult to get a loan for the deposit. But if you have to move out, you could get a loan from the employment agency, which is then deducted in small installments.

In many cases no loan is taken out, but the overdraft facility is used. Interest rates are more expensive there, but if the overdraft facility can be repaid in two to three months, it is preferable to an installment loan.

An alternative to credit for bail is a surety bond. Instead of cash, she receives a guarantee certificate from an insurance company. This guarantees the landlord the payment of damage up to the amount of the guarantee.