Deposit too high? Two alternatives to rental deposit insurance
If the required rent deposit seems too high, rent deposit insurance is not the right solution and family or friends are not eligible as guarantors, you as a tenant can consider financing the deposit.
An option could be an installment loan. Here, the tenant borrows the required amount from a bank or another financial service provider and pays it back in fixed monthly installments. The conditions and interest rates vary depending on the provider and should be carefully checked by you beforehand.
If, after paying the deposit, there are only a few days to bridge until the next money arrives in the account, the overdraft facility, i.e. using the overdraft facility for your own checking account, could be another alternative. However, they are Interest rates for overdraft facilities are usually significantly higher than for installment loansso you should use this option with extreme caution.
Our recommendation: Both alternatives require good credit and careful planning. In any case, you should avoid over-indebtedness.