To Make Ends Meet With Rent, Some Millennials Turn To Loans From Startups

With Jane Clayson

For younger renters looking for help on payments, there's a new solution: loans from startups. We look at the details and pitfalls.

Will Parker, housing reporter at the Wall Street Journal where he covers rental housing, apartment construction and policy issues. (@_willparker_)

Wall Street Journal: "As More Millennials Rent, More Startups Want to Lend to Them" — "Jennifer Burnes says the paychecks from her work as a model and designer in Hollywood arrive sporadically, posing a challenge to paying monthly rent. 'You know the check’s on the way, you just don’t know when, exactly,' the 22-year-old said.

"That is why she’s turning to StayTony. It is among a handful of startups—like Domuso, Till and Uplift—offering loans to renters recently out of college, professionals moving to a new city, and others who want to build credit or could use assistance making rent payments.

"These companies are stepping into a market long associated with payday lenders. Unlike cash-advance loans, which come with annual interest rates as high as 700% in some states, the rent-lending startups make loans available at a much lower cost. Some are competitive with credit card borrowing rates at less than 20%."

Brian Hardzinski produced this segment for broadcast.