The deposit loan is the clever alternative for the rental deposit. Many tenants are familiar with the double burden of moving.
The deposit from the canceled apartment has not yet been repaid and a deposit for the new apartment must be paid. In addition, there are the costs of moving. A dilemma that can be alleviated if a deposit loan is used instead of the cash deposit. Of course, there is still the possibility to use the existing overdraft facility. But that is usually very expensive in terms of interest rates and you should also allow yourself some leeway here if the other costs for the move do not save enough.
The deposit credit can be repaid if the former landlord has refunded the deposit from the previous apartment.
Why the surety loan is a good solution
Unfortunately, it is always the case that the deposit for the new apartment must be paid before moving in. The only concession from the landlord is that the rent deposit can be paid in three installments. But if the basic rent is 1,000 USD per month, with three net rental costs, the deposit is again 1,000 USD, which is missing for other things. With the deposit credit, the landlord gets 100% security for the deposit to be deposited. The tenant does not have to use his savings and does not really need to take out a loan because the deposit loan is different from an ordinary installment loan. Even those who have already deposited the rental deposit and only find out about the possibility later can reclaim their deposit and choose this variant.
How it works with the loan for the deposit
Instead of having to pay the entire amount of the deposit, the tenant pays his deposit loan to the provider of the deposit loan in small monthly installments. Two of the providers of a deposit loan are, for example, cash.life.de and kautionsfrei.de. The provider issues a certificate of the deposit to the landlord, thereby guaranteeing payment to the landlord if necessary.
Kautionsfrei.de works with R + V Versicherung and gives the landlord a rent guarantee from R + V Versicherung instead of the deposit, which guarantees the deposit. For this guarantee, the tenant incurs relatively low monthly costs, which, however, are slow.
However, one should bear in mind that these costs only arise for the guarantee or the guarantee. Money doesn’t really flow. As a tenant, you pay a monthly fee for the service provided by the provider when you take out a deposit loan.
The entire process is only worth it if you intend to redeem the deposit loan after a short time. For a long-term tenancy, however, this is too expensive.
What does the security loan mean for the landlord?
The process is as safe for landlords as cash. The depositors benefit essentially because they do not provide this service for nothing. The tenant pays a lot of money in the long term, even if the monthly installments are less than ten USD, something comes together over the years.
An alternative to this procedure would be the classic installment loan, which could be taken out from a direct bank in the amount of the deposit to be paid. Care should be taken to choose a bank that does not require prepayment penalties if the loan is repaid early.
The situation is not quite as simple for the unemployed or Hartz IV recipients who want to move. But here too there are options that are best inquired directly from the consortium.