Moving is expensive. Cars have to be rented and furniture bought again. In addition, the old apartment, possibly just like the new one, needs to be renovated. At the same time, …
Moving is expensive. Cars have to be rented and furniture bought again. In addition, the old apartment, possibly just like the new one, needs to be renovated. At the same time, the apparently unavoidable item “Other” is growing steadily when moving. There are also the costs for the rental deposit. The new landlord usually requires two to three basic rents as security, with which possible damage in the apartment is removed after moving out. If the old deposit fails to pay the new one because the former landlord has six months to pay it back or there is no old deposit, a rental deposit loan is often said to help raise this amount. There are several suitable solutions for this.
Loan for rent deposit: The way through the overdraft facility
A loan for rent deposit is a so-called small loan, which usually does not exceed 1500 USD. Banks are therefore happy to offer to increase the overdraft facility on the current account accordingly and thus grant a loan for the rental deposit. This solution has advantages and disadvantages. The money is immediately available and you can withdraw it in the parts you need or transfer it directly to the landlord’s account. However, the interest on the overdraft facility is higher than on any other form of credit. At some banks, they reach twelve percent. Anyone who does not have a quick repayment plan due to a large additional income runs the risk of suffocating the repayment.
Loan for rent deposit: The way through the personal loans
A personal loan is therefore more sensible (an immediate loan should be avoided since the interest burden is too high here too). As is the case with overdraft facilities, banks’ personal loans have advantages and disadvantages. The interest charge is significantly lower than that of the overdraft facility. In addition, you get the loan paid directly into the checking account and can therefore also transfer the money directly or withdraw it in pieces in the way that benefits you the most. However, the problem is that most banks do not grant a small loan, the amount of which is as small as a rent deposit. As a result, you have to raise a large sum, the repayment of which means a financial commitment that goes on for months. For many people who move, this fact is only a problem at first glance: As mentioned at the beginning, moving is very expensive. Many people take the minimum amount of personal loan and use it to finance the entire move and not just the rent deposit.