How To Get A Loan With No Credit

There’s always a starting point for everything, and it’s especially true when you’re just beginning to establish your credit. People with no credit are those who have never used a credit card or secured a loan or who buy things using their debit card or cash.

When you don’t have credit, it doesn’t automatically mean that you’re not worthy of obtaining a loan. Your situation is different from having a low credit score. Yes, both situations may give you a hard time borrowing money from lenders, but it’s much harder to borrow cash when your credit score is below average.

For folks who are yet to build credit, there are ways for you to get a loan. If you want to know how you can do that, just read this blog article.

Choose a Lender Who Specializes in No Credit Check Loans

Loan providers have different methods to assess your capability to pay back what you owe other than looking at your credit profile. For example, you can find lenders who do a different credit check from traditional lenders.

These non-traditional loan providers will assess your income status, bills payment history, and bank statements instead of checking your credit history.

If you want to try applying for a loan from a non-traditional lender, you can have many options on the internet. For instance, there are lending networks that have a pool of lenders you can choose from. Or, you can also go to a loan provider directly.

There are also instances that banks and credit unions allow people who have no credit to avail of their loans. Make sure to look for branches of such lending institutions in your locality if you need to get a no credit check loan. And, don’t forget to prepare the essential documents, such as your recent bank statements, tax returns, pay slips, and bills payment.

Look for a Co-Signer

Another option that you can take to borrow a sum of cash from a lender while you don’t have credit is having a co-signer. A family member, friend, or anyone you know can act as a co-signer for your loan application. You just have to ensure that the person who co-signs your loan has a good credit rating.

It’s also crucial that your co-signer understands the implications of taking this role. He/she should know that his/her credit score may get hurt if you fail to make payments on what you owe. Aside from damaging your co-signer’s credit score, it may also damage your relation to him/her if worse comes to worst.

As a borrower, you should take it as your responsibility to pay the loan on schedule to ensure that you don’t hurt your credit and your co-signer’s.

Apply for a Loan with Collateral

Having excellent credit is one of the primary qualifications when you apply for an unsecured loan. It’s easy for people with stellar credit scores to get such financing because having excellent credit means that they are good borrowers.

Borrowers with no credit scores, on the other hand, will really have a hard time getting approved for a loan without collateral. As such, it’s advised to go for a secured loan to borrow money. Lenders who provide this loan type allow borrowers to borrow cash when they put a valuable asset as security.

Here’s a list of assets that one can offer as collateral to get a secured loan:

  • Land or house
  • Vehicle
  • Insurance policies
  • Bond, stocks, or mutual funds
  • Gold, silver, and other valuable metals
  • Collector’s items

One of the benefits of a secured loan is that the interest rate is lower than an unsecured loan. But, you need to understand that defaulting on the loan may cause the lender to seize the asset you offered as collateral.

Consider Payday Alternative Loans

Payday alternatives loans are offered by credit unions to their members. This loan option allows you to borrow a small sum of cash with a short repayment period. This loan’s amount range goes from $150 to $1,000, with a loan term ranging from one to six months.

If you compare alternative payday loans to common payday loans, you’ll realize that the former has lower interest rates and fees than the latter. But, as mentioned earlier, you can only obtain this loan if you’re a member of a credit union. Credit unions require borrowers to be members for at least one month to avail of an alternative payday loan.

Apply for an Online Personal Loan

You can avail of an online personal loan even if you’re yet to establish your credit profile. Lenders of this loan type are not strict compared to major banking institutions. But, you still have to provide documents, such as a certificate of employment and proof of income before you can obtain this loan.


Don’t lose hope if you have no credit history because there’s still a chance that you can borrow money. For instance, you can go to a lender who specializes in non-traditional credit checks. If you want to learn more about the various ways to get a loan in this kind of financial situation, just review this article.

Author Bio:

Bree Diaz is a blogger who writes about personal and business financing. Her blog article topics revolve around business loans and e-transfer payday loans in Canada with FriendlyLender. Besides being a writer, Bree is also a businesswoman.