No Credit History Loans: Getting a Loan with No Credit

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Let’s say you want to take out a loan to build a new deck, consolidate medical debt, or finance a new workstation to start a side hustle. Personal loans can be an affordable way to finance these expenses with reasonable interest rates and predictable monthly payments. But what if you don’t have any credit history? Most lenders look at your credit score, whether it’s good or bad, to determine your creditworthiness and how much interest to charge.

However, if you don’t have any credit history or credit score, many lenders may hesitate to issue credit because they don’t know how you handle debt. Fortunately, many other lenders are willing to take the time to evaluate factors such as your income and education to give you the best chance of getting approved for a favorable loan.

Today, we will discuss some of the most reputable lenders for people with no credit and then dive into some strategies of giving yourself the best chance of approval while avoiding high-interest debt.

The Best No Credit History Loans

  • RECOMMENDED
  • LOAN AMOUNT
  • MIN. CREDIT SCORE

Best Personal Loans with No Credit History

Best for Comparing Loan Options
CashUSA No Credit History Loans
APPLY NOW
On CashUSA's Secure Website
CashUSA
  • Est. APR
    5.99% - 35.99%
  • Min. Credit Score
    560
  • Learn More
  • Loan Details

CashUSA is an online marketplace that works with various lenders to connect you with loans but does not issue them directly.

>> More: CashUSA Review

Best for Online Personal Loans
No Credit History Loans
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On Personalloans's Secure Website
Personalloans.com
  • Est. APR
    5.99% - 35.99%
  • Min. Credit Score
    560
  • Learn More
  • Loan Details

Personalloans.com is an online marketplace that works with various lenders to connect you with loans but does not issue them directly.

It is arguably one of the best marketplaces currently available for consumers, as they make it easy to shop around, compare lenders and fees, and viewing what opportunities are available. Since its founding, Personalloans.com has helped thousands of American’s get a loan with no credit.

>> More: Personalloans.com Review

Best for Comparing Bad Credit Loans
Personal Loans with No Credit History
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On Badcreditloans's Secure Website
Badcreditloans.com
  • Est. APR
    5.99% - 35.99%
  • Min. Credit Score
    560
  • Learn More
  • Loan Details

Badcreditloans.com is an online marketplace that works with various lenders to connect you with loans but does not issue them directly. However, they specialize in connecting consumers with bad credit with smaller loans that they would not qualify for elsewhere.

>> More: Badcreditloans.com Review

Best for Bad Credit
Loans with No Credit History
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On Avant 's Secure Website
Avant
  • Est. APR
    9.95% - 35.99%
  • Min. Credit Score
    580
  • Learn More
  • Loan Details

Avant Personal Loans is a direct online lender that enables applicants to prequalify for funding without affecting their credit. If you take out a loan with Avant, you can change your payment due date if you need to.

>> More: Avant Personal Loans Review

Best for Limited Credit Histories
LendingPoint No Credit History Loans
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On LendingPoint's Secure Website
LendingPoint
  • Est. APR
    9.99 - 35.99%
  • Min. Credit Score
    580
  • Learn More
  • Loan Details

LendingPoint Loans is an online lender that specializes in serving customers with low or limited credit histories. They charge relatively high rates compared to their peers and do not offer direct payment to other lenders.

>> More: LendingPoint Personal Loans Review

Best for Limited Credit Histories
No Credit History Personal Loans
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On OneMain Financial's Secure Website
OneMain Financial
  • Est. APR
    18% - 35.99%
  • Min. Credit Score
    660
  • Learn More
  • Loan Details

OneMain Financial is an online lender designed to help provide credit to consumers with limited or no credit history.

Although their interest rates are relatively high, they take other factors into account to ensure you can afford your payments, such as income.

>> More: OneMain Financial Personal Loans Review

Best for Easy Qualification
Upstart No Credit Personal Loans
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On Upstart 's Secure Website
Upstart
  • Est. APR
    5.38% - 35.99%
  • Min. Credit Score
    None
  • Learn More
  • Loan Details

Upstart Personal Loans is a direct online lender that is a solid choice for new borrowers with low credit or the potential to increase their income in the near future.

They can fund approved loans within one business day.

>> More: Upstart Personal Loans Review

How to Get a Loan with No Credit History (Step-by-Step)

Now that we have discussed some of the best lenders for consumers without any credit history, let’s demonstrate how you can give yourself the best chance for credit approval without falling victim to predatory lending practices or overpaying on interest.

Remember, consumers with bad credit or excellent credit both have an established credit history that lenders can use to determine interest rates and loan terms, but the process for getting credit from scratch is a little different.

#1. Compare Lenders and Rates

Although taking the first deal a lender offers may be tempting, it is often not the best deal you will find.

Although you may not have a credit score, you most likely have other indicators and assets you can provide to a lender to help lower your interest rate and maximum loan balance.

For example, you may be making a respectable income and, up until now, have paid cash for everything, and you want to build a new deck that costs around $10,000.

If you don’t want to part with that much cash at once, financing the deck with a personal loan may be an affordable and efficient way to complete your project without leaving you strapped for cash.

A personal loan may be a good choice because you will most likely have a fixed interest rate and monthly payment.

If you used a credit card to finance your build, then you run the risk of accruing a large amount of revolving interest charges that could be up to 30%.

Once you find a handful of lenders you would be interested in working with, look at their reviews and average rates for the $10,000 loan financed from one year to five years.

This will give you a good idea of what to expect if one of the lenders approves you so you can determine if you are getting a fair deal.

#2. Use a Lending Marketplace

After you get a handle on how much you can expect the loans to charge, use a lending marketplace like CashUSAto have the best chance of finding a lender that matches your needs and will work with you if you have no credit history.

Certain lenders like LendingPoint are leveraging data and personal finance information to provide fair and accurate loan terms.

For example, they may take your income and bank account information to create a model that will determine how much of a loan you can afford and the likelihood of missing a payment.

If you have a consistent source of income and a history of making regular payments, such as rent, then you will be in a better position to be approved for a personal loan.

>> More: Best Bad Credit Loans

#3. Choose the Best No Credit History Loan

Research is vital in helping you find a lender who offers a no-credit history loan and getting the best rates for your financial situation. Whether you are on the market for a short-term loan, direct deposit loan, or low-income loan, researching all opportunities is a must.

To determine the best loan for you, you need to start with your budget and priorities. Ask yourself questions like:

  • Would I prefer a lower monthly payment at the price of higher interest paid?
  • Would I prefer a higher monthly payment, so I pay less in interest overall and pay off the loan faster?

The answers to these questions differ for various income levels and financial situations, but these are two of the most important budgeting questions when you apply for a new loan.

On the one hand, paying less interest is generally ideal, but if you are concerned about your monthly cash flow, you may opt for the lower monthly payments.

Even if you start with the lower monthly payments, you may be able to refinance or consolidate the loan down the road as you build your credit history.

#4. Complete Online Application

If this is your first time applying for credit online, you will need to enter personal information such as your name, address, income, and other details, including your education level.

The lender will compile your information or send your profile to affiliate lenders if you are applying on an online lending marketplace.

After you submit your application, you may receive an approval or denial, depending on the lender’s criteria. You should work with a lender you trust, but if you can find an online marketplace to work with, you may get more bang for your buck.

Since working with an online marketplace connects you with many different lenders, you will only need to submit one application that the lenders can sort through. Although this may be the beginning of your credit journey, you probably want to avoid submitting too many applications at once.

#5. Receive Your Funds

Once your application is approved, you will need to provide banking information so the lender can deposit the funds.

Most modern lending services and brokers can have the funds to you within 1-3 business days – anything more than this may be a red flag.

Before you finalize your application, ensure that the lender has a reputation and good testimony for quickly disbursing funds.

#6. Make Monthly Payments

Once you have the funds, you can spend them to finance your project or purchase or whatever you took the loan out for.

Since this may be your first foray into building credit, making your monthly payment on time is imperative.

Although you were approved for a loan with no credit history, this loan becomes the first credit reported on your credit score. Your credit score comprises factors including oldest issued credit, missed payments, available credit, credit utilization, and more.

If you are worried about missing or forgetting payments, you can schedule automatic payments from your bank account so that you will only need to worry about keeping sufficient funds in the account.

Another effective strategy to avoid defaulting on your loan is to keep 3-4 months’ worth of payments in an emergency savings account in case your job changes or you have a lapse in income.

Tips for Getting a Personal Loan with No Credit History

Now that we have covered different lenders who can work with consumers with no credit history let’s discuss some tips on maximizing your chance for approval and effectively managing your credit once you get it.

Start Building Credit Responsibly

Building credit can be exciting and slightly nerve-wracking if you’ve never had it before. Credit histories paint a picture of how you handle money, if you reliably pay your debts, and if you are a risk to a lender.

Your credit score is a dynamic two-way street that can go up and down, but as long as you are aware of how it works and don’t borrow above your means. The benefits of a good credit score include access to more credit at lower interest rates, which can profoundly impact your finances and quality of life.

Even if you get a ding in your credit score, some steps and programs can help you tackle your debt and bring your credit score back up.

Apply with a Co-Signer

One of the most efficient ways to start your credit history is by having a family member or trusted friend add you as a co-signer on one of their credit lines.

Many parents add their children as authorized users, which can help turbo-charge their credit journey by giving them a chance to use their credit without being entirely responsible for it.

If you are interested in being an authorized user, make sure you trust the person and make sure they are financially stable. On the chance that they suddenly close the credit account you are linked to, you may take a hit on your credit score, even if it didn’t have anything to do with you.

Apply for a Secured Personal Loan

Secured credit can be a great way to build credit on your own without the need for a co-signer. When you open a secured credit account, you need to identify and submit collateral that the creditor can take if you default on the loan.

Depending on the loan size, this could be a car, your investment accounts, or more. Secured credit cards may be a good alternative to a secured personal loan because the collateral is money you deposit to establish your credit limit.

For example, if you open a secured credit card account with a $500 deposit, you will have a credit limit of $500 which will be collateral if you max it out and don’t make a payment.

Frequently Asked Questions

The beginning of your credit history can seem intimidating if you don’t know what to do, so we’ll look at some of the biggest questions for borrowers without any credit history.

Is It Possible to Get a Loan with No Credit History?

Short answer – Yes, it is possible to get a loan with no credit history; everyone needs to start somewhere, right?

However, suppose you have no credit history at all. In that case, you must be prepared to dig up a few more files and provide additional income verification to your lender to validate your financial situation.

Once you establish a credit history, other lenders will pull a hard credit inquiry from the credit bureaus, which will expedite the process in the future.

Is It Hard to Get a Loan with No Credit History?

While getting a loan with no credit history is possible, it is more difficult than if you had an established credit score. Fewer lenders offer loans to consumers with no credit, even if they have a consistent income.

What Do Lenders Look for in Personal Loan Applications?

Lenders generally check your credit history, income, and debt to income ratio when they are deciding how much credit to offer on a personal loan. However, if you have no debt or credit history, you may need to prove that you pay your bills (rent, electric, etc.) and more income verification, including pay stubs and bank sips.

>> More: Best Personal Loans with No Income Verification

Is it Safe to Get a Personal Loan with No Credit History?

If you work with a reputable lender, then you will most likely begin building credit safely and efficiently. Avoid payday loans, pawnshop loans, and cash advance loans because they can charge up to 500% in interest plus fees. Loans like these can accrue quickly and leave you in a mountain of debt with no benefit; they don’t even report them to the credit bureaus, so you can’t build credit even if you pay them off.

>> Learn More: What Is a Payday Loan?

Summary: No Credit History Personal Loans

Bottom Line: Best Personal Loans with No Credit History

Getting a loan with no credit history requires some diligence and research, but you will be at the beginning of your credit journey once you have it. Each lender may have unique criteria when working with someone without a credit history, so your best bet is to do your research and work with an online marketplace.

Methodology

To review no credit history loan options, analysts evaluated over 25+ personal loan lenders. Our evaluation included reviewing the lenders eligibility requirements, security, transparency, rates, fees, and funding times. Read our editorial guidelines and personal loan review methodology to learn more about the evaluation criteria.

Justin Estes
Justin Estes

Justin Estes is a Senior Personal Finance Writer who is a recognized small business accountant, consultant, and credit card expert. His background in accounting and finance led to a passion for helping people make the most of their money and matching them with financial products that enhance their lifestyle. Justin attended Charleston Southern University where he double-majored in Finance and Accounting. Justin’s areas of expertise are credit cards, small business finance, accounting, and taxes.