How to Get a Loan with No Credit History
How Do I Even Start to Get a Loan with No Credit History? Is It Even Possible?
Know that there is a Loan with No Credit History out there, dear reader. And that should be the spark that ignites your flame for change. Have hope in knowing that you can get short term cash loans, and we will show you a few things to help you before you’d get started.
1. Co – Signer Loans
A co-signer loan is possibly one of the very best ways to turn that frown upside down, and make it a smile, so to speak. You have just learned that you keep getting continually rejected on applications because of a shady financial past, a terrible financial present, and a gloomy overall financial future outlook as the result of the latter two. But a co-signer loan can help out when all hope has seemed to fail. Coming through like your own financial Superman in times of great peril.
Think of yourself as the damsel (or dude) in distress, who is about to get the help they need. The one who is about to feel better again! With these types of loans, someone else whom you know, whose finances and credit are in very good shape, can sign the loan for you. Thus, you get accepted for it. Bear in mind that, in the event that you are ever unable to pay back the loan granted to you, the responsibility will fall right back onto the shoulders of the co – signer ; don’t be a bad friend.
2. PayDay Loans
These loans are simple, quick and easy to get. Just about anyone can get them. Top places around the U.S. offer these to all who qualify. And it’s not hard to be eligible. Usually, the highest amount that MoneyTree’s payday loans go for is $500. However, I’ve seen people taking out higher amounts.
It all depends on a ton of factors. Among which your background. (with full criminal history and all else, which usually will be checked). But also your credit score, any recent credit bureau reporting information from the last ten years, your current income and employment verification, your ID and its validity, and so much more. Internet payday loans can offer a quick way out, as well, when you don’t know where or who to turn to for help ASAP!
The length of a payday loan typically varies. It is based on the terms you decide to agree to and are also approved for. With some loans, you can take out the full amount right away. With others, you withdraw in increments, at certain intervals. Doing so periodically, until you’ve got the full amount.
3. Bad Credit Personal Loans
Even though this is not a loan with no credit History you can get, it’s still a type of loan you may be able to get. Common sense follows, and most people agree with it, that it’s usually not a good idea to add another loan to bad credit as it will shoot down your score and financial assessment. It will put you at even more risk of default, and not show responsibility on your end.
After all, banks, employers, and even the IRS can see it as a ‘lack of a true plan’. They will think when something goes wrong, an automatic default is to simply fix the problem by adding more fuel to the fire. And though you can often get approved for one of these ‘bad credit personal loans’, it is not wise. You have to fix the root source of your debt issue. That is how you are really going to climb out of the hole you keep sinking yourself into.
And keep in mind that APR’s here do not go easy on you, sometimes, as you would expect when you are in such a tough situation. Many loans of this type start at APR rates of 125%, no joke at all. Is it worth it?
4. Use a Credit Builder Loan
Credit builder loans are awesome. That’s an understatement. A credit builder loan is methodical and works with a purpose, a clear end goal, which only benefits you more and more as you get further into its term length. By the time you have finished the credit builder loan, and have made it through to the other side of the tunnel, you can be a far more wise, knowledgeable, free and peaceful person. You can borrow limited amounts, and as you pay them off frequently, they’ll boost your score and financial reportings.
Basically, let’s say the lender will agree to let you take out a very small amount (which is usually how it will be). However, you won’t get it in cash, directly. It’ll get funded to a savings account, of which limited maximum withdrawals are permitted each week / month. Be faithful in paying off agreed – upon monthly payments toward it, and gradually, your credit score will go up and up and up. And in the end, it’ll feel so good. You’ve accomplished something that took some discipline and effort.
Local credit unions offer these loans most. You may see them there most frequently. Ask around to see if they’re offered in yours.
How to Start Establishing a Credit History
1. Get Added as an Authorized User on Another Credit Card
This is a high sign of trust, and banks, credit card agencies, and other entities will see such a move as one of trust : They will note how the other party places great trust in you —- even if he or she is your spouse or direct family member, or someone of very close relation —- and may be inclined to do the same themselves. In other words, the other person has chosen to trust you to use their credit card, and that alone can say much, when you think about it, especially in a world of much fraud and everyday hacks. It’s a difficult time in knowing who to trust, in today’s age, but the fact that you’ve managed to earn (and hopefully keep) someone else’s trust can be a sign of great respect.
Keep in mind that, both your actions and those of the main card holder’s, may be assessed, after some time….when you apply for a loan. So everything you and the other party did, particularly through the card of which you’re an authorized user, may be looked at, to get more perspective — don’t let this worry you. Just stay responsible.
2. Sign Up for a Secured Credit Card
Secured credit cards are also a great way to go. They don’t offer you any credit, at all, upfront, but only the credit you provide. So they’re like savings accounts, in a sense, and the best part is that you can’t get in debt with someone else’s borrowed money though you can suck out your own quite dry. That’s if you’re not careful, which we hope you will be. How do these work, you might wonder?
Well, they’re called “secured credit cards” for a reason, because the money they use is your own, and is not tied to interest, either. And it’s money that does not need to be paid back, mostly, so this takes a load off your chest. It protects you, securely, from tying up someone else’s money and not being able to pay it back. And it gets better.
Some secured credit card providers even allow you to set limits on the maximum withdrawal or usage, based on the total deposited into the card. This means that, if you need a ‘boost’ of self – control, to keep you from spending it all at once, it can happen. That’s one of the things the card is there for. It’ll properly ‘cut you off’ before you can overspend.
3. Get Credit for the Rent You Pay
There’re many great ways to build up your score and get credit, not to mention feel awesome for doing so. Guess what? One of them is through paying off your rent on time. Every time you make a payment, to anyone, on time, it should look good. And it does.
And did you know there’s a whole wealth of rent – reporting services out there, like RentTrack and Rental Kharma, that specifically hone in on this? That’s right. Their whole job is to track your rent – payment habits, to see if you can get some credit for it. Their goal is not to micro – manage you, as some might think, but rather to see where they can help out and offer a great service to meet a need you might have.
But of course, you have to do your part and remain responsible. Pay off that rent every month, if you end up paying off nothing else. This is one of the most important ongoing payments you can make. Take it as seriously as you should.
How to Get a Loan Without a Credit Check
There are loans without a credit check, of course, to get that loan, even without having more hard / soft hits tacked onto your reports when your credit’s run. One of these methods is to simply reach out to someone you know well, who trusts you, who can give you a personal loan, maybe through cash or a check.
That has helped many people, and if it’s through a loved one who really cares about you, then you probably won’t have to worry about paying them interest, or paying them back “on time”, even. The key, though, is to be in constant communication, both parties expressing how they feel on any potential setbacks or other topics that may arise.
Be honest with your personal lender, and be willing to lend to them when they might need it, too. What comes around goes around. And when you give the same generosity you expect to receive, it keeps all things mutually beneficial, the other party will note it, and it may keep a few doors open for you, as well, if you need to borrow again.
You can also get a grant. How about a non – profit loan from an institution that gives these? Look around.
Where Can I Get a Loan from with No Credit Check?
These are sometimes called an “Emergency Cash Loans”, and you can usually get such a loan the same day or next – day, and in fresh wads of cash, if you really need to. But bear in mind that Emergency Loan providers are also businesses. They so need to make some money from what they do, to avoid debts of their own. Many people forget this. And with that said, these business can often charge insane late payment amounts. Those high interest and other elements may make you wish to reconsider even borrowing.
Not all such lenders are the same, which is why you have to very carefully read those terms. If you want to save time (and embarrassment, from having to read the whole thing at their local office, while they wait on you for a decision), go online and sniff things out on your own, first. That way, you’ll know the actual risks and benefits of the whole thing, before they can try to “sell you on it”, be it good or bad. Most of these providers have all their info. available online already. Some try to make the process as simple and upfront as it can be.
Finally, to Get a Loan with No Credit History. Any Last Things to Note on How to Get a Loan with No Credit History?
So, to sum it all up, if you really want to get a Loan with No Credit History, it’s possible. Start there. Use what we’ve suggested.
And know that many have gone before you to get a Loan with No Credit History. And now, so can you. Be glad!
About the Author: Efrain S
Efrain is a contributor and writing professionally creating palatable, actionable content in the realm of finance. He obtained his BA in Communication with a minor in Mass Media studies. He also writes academic content in APA, MLA, CHICAGO, HARVARD & TURABIAN styles. Plus, he’s 100% fluent in English and Spanish.
Julia Peoples is a long-time business manager focused on providing decision making assistance to the public. She works with people at key points of their lives who are making important retirement and financial decisions. She has had many articles published that educate the public on sound financial decision making.
Julia writes for those who are working towards financial freedom or a better understanding of how finances work. She has shared her financial insights with individuals on a one on one basis for years.