Shop keeper counting money in shop. concept: alternative lending
Betsy Wise
By: betsy_wise
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How to Get a Loan with No Credit and Best Practices to Get Approved

Many people wonder how to get a loan with no credit, and it’s easier than you might think. You should know you don’t need to have a previous credit history to apply for a personal loan.

In this article, you’ll learn how to get a loan even if you don’t have credit, the types of personal credit loans and alternatives, and a list of the best tips to get approved.

Additionally, we provide answers to FAQs, customary loan requirements, and how to apply for a loan with no credit check.

Get A No-Credit-History Loan

woman realizing she has no credit score

What Does it Mean to Have No Credit?

Having no credit means you haven’t borrowed money in the past, so there’s no credit history for lenders to review and verify your payment history. In other words, your credit report is blank; you have no FICO score.

Here are the most common reasons people have no credit:

  • They haven’t applied for a credit card or personal loan
  • A borrower doesn’t have at least one credit account that’s been open for six months to calculate their credit score
  • You closed your credit account or you haven’t used it to make purchases.
  • Lenders haven’t reported the credit activity to a credit bureau
  • They’re young adults, new immigrants or have recently become single through a divorce or death of a spouse who handled all the finances.

In these situations, there may be no credit accounts listed in your name.

Conversely, having no credit is different from having bad credit.

Someone with bad credit has an unfavorable credit history due to not paying bills on time, bankruptcy, or accounts they never paid off. As a result, lenders tend to shy away from bad credit borrowers because they’re a greater financial risk.

Even if you haven’t established a credit score, you can still have a prosperous financial future.

You can learn how to get a loan with no credit history. Keep reading for information about which loans to consider and which no-credit-loan companies work with no-credit applicants.

Types of No Credit Loans and Alternatives

To help you learn how to get a loan with no credit (or even bad credit), we decided to list the personal loans you should consider and the ones you should avoid.

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Loans to Consider:

These are some of the top lending options people with no credit scores have.

Online Personal Loans

Personal loans are the most basic, and most useful, type of loans. And fortunately, there are personal loans for people with no credit history.

Online lenders simplify the loan process because applicants apply online and provide documentation electronically.

By streamlining how you apply for funding, lenders can deposit money into an applicant’s bank account within 2 days, on average.

Camino Financial offers unsecured loans with the best interest rates and terms while you improve your credit score. In addition, our clients have access to workshops and events to help individuals and businesses manage their finances and increase their credit scores.

Apply with Camino Financial!

Credit-Builder Loan

Also referred to as starting over loans, credit-builder loans teach you how to oversee your finances better.

The lender holds the money in an account while you make payments. Thus, you build up savings and build credit simultaneously. Once you make the required payments, the lender deposits the money into your account.

You can get these small personal loans at credit unions, community banks, and some online lenders.

Credit Card Loans

Yes, there are credit cards for no credit history applicants.

You can build credit within 6 months at a cost that’s not hard on your wallet. Most credit card companies report payments to the three major credit bureaus. As a result, credit card loans are one of the easiest ways to build credit when paying your bills on time.

P2P Loans

Peer-to-peer loans are mostly unsecured forms of financing for borrowers with no or low credit ratings.

Since there’s more competition among lenders, interest rates and fees may be lower than other types of personal loans.

#DidYouKnow
P2P loans aren’t regulated and require you to reveal a lot of personal information to determine your eligibility.

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Loans to Avoid:

The following products might seem enticing because they approve applicants with a bad credit score or no history. But they might not be the best alternatives. Here’s why:

Payday Loans

Payday loans are fast loans with no credit needed; however, they have a considerable downside. Interest rates can be as high as 400% annually since the loans are usually due within 2 weeks.

Fees mount up quickly, and the lender gains direct access to the borrower’s bank account.

Cash Advances

Unless you can pay off a cash advance each month, the lender will charge you interest. Before you make your first payment, banks charge transaction fees the moment it posts to your checking account.

Many people get into trouble when they obtain several cash advances in one month and can’t make minimum payments. The creditor then charges late payment fees, which end up hurting the borrower’s credit score.

Secured Loans

To get approved for a secured loan, the lender requires collateral in the form of vehicle titles, non-refundable deposits, savings account, home, and other assets.

If you default your secured personal loans, the lender has legal access to the collateral you offered to secure the loan.

Title Loans

Similar to a payday loan, title loans are a quick way to get your hands on cash. The average APR for this type of loan is 300%.

Lenders use your car’s equity (the value of your vehicle minus what you owe) to determine the maximum amount they can lend. Once you sign the loan, you hand over your vehicle title to secure the loan.

If you can’t repay the loan, the lender can repossess your car.

woman counting dollars

What do I Need to Get a Loan?

In this section, we’ll help you understand the process of applying for a loan and the most common requirements you need to meet. Understanding lending requirements is crucial when learning how to get a loan with no credit.

Common Loan Requirements

If you want to know how to get a loan with no credit, you need to understand what no-credit loan companies will ask of you. Because you have a credit report with no credit score, they’ll ask for other things to make sure you’ll be able to repay your loan.

  • Tax number: most lenders will only approve you if you have an SSN (other lenders, like Camino Financial, can approve your loan even if you only have an ITIN).
  • Minimum income: a common requirement is that you have a minimum monthly income. Expect to find lenders that ask you to earn over $3,000 each month.
  • Bank account: you’ll need to have a bank account to apply for a personal loan. This will allow the lender to review your cash flows and income (and it’s where they’ll deposit your loan).

At Camino Financial, we have minimum requirements. You can apply with an ITIN; you need to have a monthly income of at least $1,500 and have a bank account that has been active for at least 6 months.

Get A Quote!

Ask yourself these questions before asking for a no credit check loan

An essential aspect of knowing how to get a loan with no credit is answering specific requirement questions even before you apply for a loan.

  • Considering your finances, do you have more debt than income or more income than debt? This is called your debt to income ratio
  • When contemplating how to get a loan with no credit, why do you need a personal loan?
  • Can you afford the loan payments?
  • Does the lender seem trustworthy?
  • Does the loan require collateral such as a savings account or a vehicle?
  • Does the lender have a minimum credit score requirement before you can apply for a loan?
  • What fees does the lender charge? (Late payment fee, origination fee, etc.)

#CaminoTip
If you aren’t sure a lender is legitimate, check with the Better Business Bureau or use a business review website like Trustpilot.

a loan form for people with no credit

How to Apply for a Loan with No Credit Score

These simple steps make it easier to apply for a loan with no credit and give you confidence and peace of mind before you fill out an application.

1. Find the Correct Lender

It pays to shop around when borrowing money.

Because lenders offer different loan amounts, loan terms, and requirements, it’s always a good idea to review and contrast different offerings.

For example, if a lender requires collateral to secure the loan and you don’t have any, look for another lender with different requirements.

Stay away from lenders that aren’t transparent about their lending process or don’t have a dedicated customer support team. Great lenders offer convenient services such as online account access or automatic payments.

#CaminoTip
Pay special attention to the lender requirements. Choose a lender that offers personal loans with no minimum credit score or no credit history.

2. Decide how Much you’ll Borrow

Before you fill out a personal loan application, know what loan amount fits within your budget. In other words, make sure that you can comfortably repay the monthly payments.

Use our loan calculator to get an idea of what you can afford.

Term Loan Calculator


3. Complete an Application

Once you have compared different lenders and settled on one, it’s time to apply.

Make sure that you have all the information the application requires at hand. If you prepare ahead of time, you’ll be able to complete it faster.

Here’s a breakdown that will help you complete your personal loan information

Generally, you’ll need:

  • tax identification number (SSN)
  • proof of identity, like your driver’s license

#DidYouKnow
Camino Financial also accepts ITIN!

Some lenders may require copies of tax returns and checking account statements. Be prepared to provide information like:

  • your name
  • physical address
  • home information (like how much rent or mortgage you pay)
  • email address
  • phone number
  • date of birth
  • employment and income information

4. Receive a Pre-Qualification

Once you complete the app, the lender will decide if you’re a match for their product.

If you get pre-approved and like the terms presented to you, the lender might ask you to share more information or documents. Be prepared to share bank statements (some lenders do it electronically with tools like Plaid) and your ID card.

5. Sign your Contract and Receive your Loan!

Now, you know how to get a loan with no credit! Receiving your money is all a matter of time.

Many online lenders can complete the whole process in just a couple of days. For example, at Camino Financial, you can get your loan in as fast as 2 days!

Get Approved For A Loan Today

hands offering stack of dollars

How to Get a Personal Loan with No Credit: Tips and Best Practices

If you want to learn how to get a loan with no credit, we can give you some advice to further help you.

Increase your chances of getting approved for a loan with these tips.

Be Honest with Yourself About How you Handle your Finances

If your spending has been out of control in the past or you don’t usually pay your bills on time, getting a personal loan may not be the answer. Get help to learn how to manage your finances before you borrow money.

10 Debt Management Tips

Understand Loan Factors

If you want to know how to get a loan with no credit, then make sure you learn everything you can about loan terminology. This will help you find the lender that best suits your needs and your budget. Plus, it will help you save money.

Once you understand loans, you can compare lenders easier and faster.

Start Small

Borrow a small amount, like $500, and make timely payments. Once you pay off that loan, your positive credit score will help you qualify for larger amounts.

Steer Away from Expensive Loans

Develop a mindset that you’ll only accept a loan offer that has favorable repayment terms.

If the monthly loan payment is too high or the term length too long, you may default on repaying the loan.

Build a Credit History

You can get better loans in the future by improving your credit score.

Pay down or pay off your credit balances consistently each month.

If you pay rent, ask your landlord and utility company to report your payments to the credit bureaus.

Once you start building good credit, make it a habit to review your free credit reports to ensure there aren’t any mistakes. You can use services like Credit Karma.

#CaminoTip
Remember to have patience; it takes time to build credit.

Use the Funds Wisely

This is one of the most critical how-to-get-a-loan-with-no-credit tips. When there’s money in your bank account, it’s tempting to go on a shopping spree. But, if you took out the loan to consolidate debt or pay off a long-outstanding bill, stick to your original plan and budget.

#CaminoTip
Now that you know how to get a loan with no credit, you can start researching the best personal loans in the US.

man researching how to get a loan with no credit

What is a FICO score?

Now You Know How to Get a Loan With No Credit, Why not Apply With a Great Lender?

With this information, you know how to get a loan with no credit. And, you should see that it’s possible to gain access to money even when you haven’t established a credit score or history.

In addition, you can choose a preferred loan type with the least risk and use proven tips and practices, so your loan application gains favor with a lender.

At Camino Financial, we accept applicants that have no previous credit history.

In fact, we designed the Solopreneur loan for that very reason. We fund people who have an SSN or ITIN with only a few requirements. Applicants must be current with outstanding debt, earn a minimum of $1,500 a month, and have had an active bank account for at least 6 months.

Plus, we report your payments to Experian, one of the most important credit Bureaus, to help you create a credit history.

Once we approve your Solopreneur loan, you receive cash in your banking account in 2 days.

We encourage you to apply for a personal loan and experience firsthand how Camino Financial helps people succeed.

Apply now!

 

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Frequently Asked Questions About Loans With No Credit

Can I get a loan with no credit?

Yes, you can, whether you need money to pay for health care or other personal expense.

Just know that lenders will charge higher interest rates and limit how much money they loan to you.

How big of a loan can I get with no credit?

The loan amount could vary between $1,000 to $40,000 or more.

A lender looks at information other than your credit score, such as your debt-to-income ratio and whether you have sufficient income to repay a loan.

Once a lender assesses your financial health, they decide on a loan amount and assign an interest rate representing the least amount of risk to you and them.

How to get approved for a loan with no credit?

Follow the tips and instructions above! But here’s a quick rundown:

  • Improve your credit score
  • Choose the right lender for your needs
  • Know and understand the loan terms
  • Be prepared before you apply
  • Start at a credit level you can afford

#CaminoTip
Spend the loan sensibly and make timely payments to improve your credit score.

Where can I apply for a loan with no credit?

You can access fast loans with no credit history needed with Camino Financial.

Learning how to get a loan with no credit with us is super easy! You just need to complete an online paperless application that takes no longer than 10 minutes.

We specialize in lending to applicants with a low credit score or no credit history. As we like to tell our clients, “We say yes when others say no” whether you need financing for personal or business use.

Check if you
qualify for a loan

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