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While it can be difficult to borrow money if you don’t have any credit, it’s possible. (Shutterstock) It’s easier to qualify for a personal loan with an established credit history. But if you don’t have any credit, a lender may still approve you for a loan. Here’s how to get a personal loan with no credit history, as well as some steps you can take to establish and build your credit.
How to apply for a personal loan with no credit historyIf you need a loan but you don’t have a credit history, follow these steps: 1. Shop around and compare optionsDo some research and find several lenders who focus on factors such as income and employment history instead of just your credit score. Then, compare their interest rates, repayment terms, fees, and eligibility requirements. Some lenders will let you prequalify and check your loan offers without hurting your credit. Credible makes it easy to see your prequalified personal loan rates from various lenders all in one place, and it won’t affect your credit score. 2. Choose a lenderOnce you have a few prequalification offers, read reviews online to get an idea of each lender’s reputation. Then, pick a lender with the ideal loan for your unique budget and situation. 3. Apply for the loanMost lenders will let you apply for a loan on their websites, from the comfort of your own home. Be prepared to share basic personal and financial information about yourself. You’ll also need to submit documents, including pay stubs, tax returns, and bank statements. 4. Close on the loanIf the lender approves your application, it’ll send you the final loan documents. Review them carefully and make sure you understand all the terms of the loan before signing on the dotted line. You can expect to receive your loan funds via direct deposit shortly after, sometimes as soon as the same or next business day after approval, though funding times vary depending on the lender. 5. Build your creditOnce you’ve received your funds and started repaying the loan, do your best to make your monthly loan payments on time, every time. Your payment history is the biggest factor that makes up your credit score. Having a history of on-time payments on your credit reports will help you build credit and open the doors to more financing options in the future. How to establish credit if you have no credit historyIf you don’t have a credit history, it’s important to establish one. With a high credit score, you’ll find it easier to buy a house, car, or anything else with the lowest possible interest rates. Having good credit can save you thousands of dollars in interest charges over your lifetime. Here are some ways you can establish a credit history:
If you’re ready to apply for a personal loan, Credible makes it easy to compare personal loan rates from various lenders to find one that suits your needs. How can you have no credit history?Your credit history is a record of how you repay debts and is used to calculate your credit score, which helps lenders evaluate your ability to pay back a loan. Your score is made up of several factors, like:
The higher your score, the more likely you are to make your payments and the less risky of a borrower you are in a lender’s eyes. Here are some reasons why you might not have a credit history in the first place:
Establishing a credit history doesn’t happen overnight. But if you make consistent, on-time payments and don’t take on more debt than you can comfortably repay, you’ll gradually build your score and boost your approval odds for future loan products. Can you get a loan with no credit history?Yes, it's possible to obtain a personal loan without a credit history. That said, you may be faced with higher interest rates and unfavorable loan terms, especially when applying for an unsecured loan.
What is the easiest loan to get approved for with no credit?The easiest loans to get approved for would probably be payday loans, car title loans, pawnshop loans, and personal installment loans. These are all short-term cash solutions for bad credit borrowers in need. Many of these options are designed to help borrowers who need fast cash in times of need.
Whats the biggest loan you can get with no credit history?What is the most money you can borrow if you have bad credit? Reputable lenders of personal loans for bad credit allow customers to borrow as much as $40,000 or $50,000.
How can I get a loan with no credit and no cosigner?Adam McCann, Financial Writer. How to get a personal loan with no credit and no cosigner:. Get a secured personal loan. Your credit, or lack thereof, doesn't matter as much when you put up collateral to secure a loan. ... . Take out a credit-builder loan. ... . Use your home equity. ... . Borrow from someone you know.. |