Are you ready to move and have a new home somewhere else? A security deposit loan can help! You probably have a good journey ahead of you, but one obstacle can be the security deposit, which is usually quite high.

That’s why getting a security deposit loan might be just what you need to continue to the next chapter of your life. Such a loan can come in the form of Delaware title loans, but before we get into that, let’s look into security deposits and why do you need them.

What Is A Security Deposit?

A security deposit is any deposit you give to a landlord before moving into a rental unit (apartment or house). Your landlord holds it for the duration of your rental agreement, returning it after the contract depending on the state of the property when you leave. 

It's separate from a 'pet deposit,' which you may need to pay if you're keeping a dog, cat, or another animal on the property. In Delaware, your potential landlord cannot ask for 'assurance money' or other types of payment that don't fall within the application fee, pet deposit, or security deposit bracket.

Why Do You Need To Pay A Security Deposit?

In Delaware, there are three reasons for a security deposit, including:

1. The landlord's reimbursement for any damage caused by you that goes beyond normal wear and tear and that cannot be solved by standard cleaning or painting.
2. To pay your landlord for any rental arrearage, such as late charges, premature termination, or agreement abandonment.
3. The landlord's reimbursement for expenses incurred through re-renting after premature termination or renovating.

What Is A Security Deposit Loan?

A security deposit loan is essentially any unsecured or secured loan that helps you pay your deposit on a rental unit. It's typically equal to your first month's rent, so using a loan type that allows you to acquire a bigger sum of cash should be helpful. That’s exactly what auto title loans and signature installment loans in Delaware can offer.

Types Of Security Deposit Loan

There are lots of loans available that you can use as a security deposit loan. You might even qualify for a government-funded program.

We'll look at the top three types below to give you a good understanding of the financial options out there.

1. Unsecured Loans: Signature Installment Loans

Signature installment loans are unsecured, meaning you don't have to put up any collateral. They're an option for those who don’t have collateral to offer since you're essentially just promising the lender that you'll repay by providing a signature.

When you qualify for signature installment loans online from Delaware Title Loans, Inc., you can borrow up to $1,250 for your security deposit. All you need is a government-issued photo identification showing that you’re older than 18, proof of income (usually your most recent pay stub), and your most recentchecking account statement open in your name. 

2. Government-Funded: Statewide Security Deposit Loan Program

The government developed a security deposit loan program to help low-income applicants pay their relocation costs and security deposit. It's a low-interest loan that also provides budget counseling and financial education to all eligible patrons. However, proving your eligibility can be a lengthy process that requires a lot of paperwork and time.

3. Secured Loans: Auto Title Loans

Delaware auto title loans allow you to borrow between $300 and $15,000 for your security deposit, depending on the value of your vehicle. One of the benefits of this loan is that you don't need to have a perfect credit score. Delaware Title Loans, Inc. welcomes good or bad credit scores alike.

To qualify, you must own a vehicle and present it for inspection. It can be a car, van, or truck, but either way, you need to have a corresponding lien-free title in your name. You will also need your government-issued photo ID.

How Can I Qualify For Auto Title Loans?

Follow the steps below to acquire an auto title loan. The process takes less than a day to complete and you can do it from the comfort of your home:

1. Fill in the online form on Delaware Title Loans, Inc. The form sends your information directly to your nearest Delaware Title Loans, Inc. storefront.
2. Wait for a loan representative from that location to give you a call. Their job is to tell you about the process, answer your questions, and ensure you know the required documents. They will also schedule an appointment with you at a location of your choice.
3. After the conversation, make sure to have your driver's license or government-issued photo ID, the lien-free title to your vehicle, and your vehicle when you meet with the loan associate.
4. Sit with our loan associate, who will review your documents and examine your vehicle. All of this will determine whether you are eligible and how much money you qualify for.
5. If you qualify, the loan associate will walk you through the rest of the process and request your signature on a few forms.
6. Finally, you will receive the money on the same day or the following business day.

Get Moving With Auto Title Loans Today

Finding the funds for a security deposit can be tricky when you’re already paying for moving costs. However, with auto loans from Delaware Title Loans, Inc., you can get your security deposit loan in less than a day, allowing you to start your new life as soon as possible. Submit an online form today to begin your process. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.