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When you rent a new home, your landlord or letting agent will usually require you to pay a deposit of at least five weeks’ rent before you move in. If you don’t have immediate funds available - for example, if your living circumstances suddenly change - finding a deposit to pay up front may be difficult. This is where a rent deposit loan can be helpful to cover your deposit and secure your new home.
If you have the time and means to save up your rent deposit, we’d always advise you to take that route! However, if you’re struggling to pull together the funds, you don’t have enough savings and borrowing from family or friends isn’t an option, a loan for a rent deposit might be worth considering. Remember, though, taking out any loan is a big responsibility, and you must be sure that you can afford to repay it in full and within the terms set out by the lender.
Here at Creditspring, our members use our small no-interest (83.1% APR) personal loans for many different reasons, from paying an unexpected big household bill to covering wedding expenses, Christmas spending and even home improvements.
Are you looking for a loan for rent deposit purposes, even if you’ve already been renting with bad credit? Perhaps you don't quite have enough money for your deposit and you’re looking to top up your funds? Or maybe you want to know what loans for tenants are out there and are keen to understand your options.
A Creditspring loan could be one of those options. We’re different to most traditional High Street and online lenders and take into consideration your entire financial situation and ability to repay the loan, not just your credit score. As a subscription finance service, we only charge a low monthly membership fee and no interest (83.1% APR), and we don’t charge any late repayment fees either. So long as you’re aged 18 or over, have a stable income and can satisfy our affordability and credit checks*, you may be able to apply for a Creditspring loan.
*This list is not extensive and Creditspring membership is subject to status. Terms and conditions apply.
The first thing you’ll need to do is check your eligibility. If you are approved and choose to become a Creditspring member, we’ll let you know within a few minutes. Changed your mind about borrowing from us? Don’t worry! All our loans come with a 14-day waiting period, so you’ll have time to decide whether you still need the money or not. After that, you can request the funds to be paid into your bank account. Payments are made seven days a week, except for bank holidays.
Not yet eligible for a Creditspring loan? No problem – we can still help you. Just sign up as a free member to access our members-only space packed with smart finance tips, exclusive partner offers and our Benefits Finder, which, if you’re eligible, could help you unlock benefits, grants and discounts worth £895*.
Remember, too, if you’re in financial difficulty and struggling to pay your rent, bills or rent deposit, organisations such as Shelter or your local housing association may be able to advise you.
*Data correct as at February 2024
London - £2,501
High Wycombe, Buckinghamshire - £1,311
Scotland - £957
North East - £803
North West - £1,025
Yorkshire & Humber - £940
Wales - £987
West Midlands - £1,052
These figures illustrate the disparities in rental costs across the UK, with London having the highest average rent. Other areas like High Wycombe in Buckinghamshire also saw significant increases in rental prices, with a 22.4% annual change leading to an average rent of £1,311 per month.
It's important to note that while the rates of increase in rental prices are showing signs of slowing down, the market remains competitive, with many tenants choosing to stay in their current homes due to the fear of further rent increases.
We wouldn’t advise it. Taking out a loan to pay your rent is ultimately a short-term – and costly – option. Any interest or fees that come with your rent loan will mean you’ll end up paying out more money and you could find your debts spiralling, especially if you can’t afford to make the rental loan repayments as well as your other monthly outgoings.
If you’re struggling to make your priority payments such as rent or your energy bills, please reach out to an organisation that can offer you free support and advice. You could contact Citizens Advice or visit Money Helper where you’ll find lots of helpful tools. Remember, you don’t have to tackle your financial difficulties alone – by taking action and seeking help, you can find ways to get back on track that you might not have previously thought of.
Yes, more so if you’re struggling financially anyway, perhaps because of a sudden big bill or loss of income, for example. Unexpected things happen of course, so if you’re considering an emergency rent loan, it’s important to think carefully about how you can manage this new debt comfortably. Taking out a loan to rent a house or apartment, even if you believe you can pay it back quickly, isn’t a good financial habit to get into, so if you’re in financial difficulty and struggling to pay your rent, bills or rent deposit, the organisations we mentioned earlier and also places like Shelter or your local housing association may be able to advise you.
Our loans are available to UK residents aged 18 or over with a regular income, and no recent CCJs, IVAs or bankruptcies*. You can check your eligibility to see if you qualify in less than a minute.
*This list is not extensive and Creditspring membership is subject to status. Terms and conditions apply.
