Although not nearly as popular a source of emergency funds as credit cards, tenant loans actually come with some distinct advantages. These loans are for people who don't have any assets which can be used as security, and so are highly applicable to tenants.

A tenant loan will be a once only agreement with no option to increase it. With a credit card, you have a constantly available source of additional credit, wherever and whenever you need it. This can make it really easy for some people to spend far more than they can really afford, and many do.

The reason for this is probably down to impulse buying, as putting the cost on a card for the odd purchase is so easy, and easier still to forget about until later, when the statement arrives. By contrast tenant loan applications will normally have been thought out long in advance, and will generally be for something important rather than something trivial.

They are also very quick and straightforward to sort out, making them a good option in case of an emergency. You can complete a simple online application without the need for supporting documentation, and can reasonably expect to see the money in your bank account by the following day.

If you are used to being refused a loan due to poor credit, don't despair. Usually, tenant loans are considered set of criteria and are often approved. If you have poor credit and are trying to build it back up, approval and prompt payback of tenant loans could be a real help.

The only disadvantage of this type of loan is that the interest rates are often higher than those on a secured loan. The lender has to compensate for the risk they take when lending to people with a poor credit history.

If you are the kind of person who struggles to manage credit card debt effectively then tenant loans may benefit by being a much simpler arrangement.

If your credit is poor, you may have the opportunity to prove yourself and rebuild your good standing through responsible management of a tenant loan.