Rental deposits can reach considerable sums, depending on the residential area. It is therefore not always possible to pay them immediately, which is why they need financing in such a case. Ideally, the new security deposit will simply be paid back with the repayment of the old one. But since ideal cases seldom happen when they are really needed, there must be a financial bridging in the meantime. In addition to regular bank loans, the credit market now also offers special offers, which were designed solely as a loan for the rental deposit.
The loan for the rental deposit at the bank
Banks are usually looking in vain for a loan for the rental deposit. However, existing offers can be used to obtain funding. Which these are ultimately depends primarily on the amount to be financed. Rental deposits usually consist of two to three monthly rentals. Even with smaller apartments can quickly come together amounts of up to 2,000 USD. Basically, there are two options for the bank here, credit and installment credit. As long as the deposit is below 2,000 USD, the agreement of a disbursement credit is obvious, because most installment loans start only from amounts above this amount.
An overdraft loan is basically an extension of the financial flexibility on your own checking account. His application requires only a few formalities, often even a conversation with the bank is enough. Thereafter, a so-called credit line is set up on the account. This indicates the amount, with which the account can be led maximally in the Soll, thus in the minus. This credit line is calculated on the basis of the regular income, which is transferred monthly to the current account of the borrower. The usual amount is two to three times all income.
By using it as a loan for the security deposit, it may well be possible that the credit line is quickly exhausted. This is an important point in view of the interest rate, because credit facilities are significantly more expensive than installment loans, since there is no fixed repayment plan. So the bank does not know exactly when the loan will be repaid and how much. Because with the credit line you can make the repayment just as flexible as the claim. So it should be clear beforehand how quickly, as a borrower, you will be able to fully repay the loan. If a repayment of the old rental deposit is expected in the near future, however, it can be accessed without hesitation.
However, if you need a higher loan for a rental deposit, you should consider taking out an installment loan. These tenders, which are often advertised as instant or direct credit, can in most cases be completed online, reducing the waiting time until the money is credited to the account, but only minimally. Rather, it is important to make a precise calculation as to whether this loan actually represents the ideal solution. It should not be taken too long to keep interest expenses as low as possible.
An important comparison feature here is the effective interest rate, as these include all costs relevant to the loan. However, the conclusion of a residual debt insurance can be confidently saved with a relatively small amount, especially if in the near future a repayment of the old rent deposit is to be expected.