How to get a personal loan without credit history


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Looking for your first personal loan without credit history? This guide will tell you about the types of loans you can get and where to get them. (iStock)

Personal loans are a flexible form of credit. You can use them for anything from starting a business to paying for a vacation or consolidating other high interest debt.

Getting personal loans without a credit history can be difficult, but possible. And you can improve your chances of getting approved by sweetening the deal for lenders with a collaborator or collateral.

How can I not have a credit history?

Your credit history plays an important role in your finances. Rating agencies use information from your credit report to calculate your credit score, which helps lenders make lending decisions. Generally, the higher your credit rating, the easier it is to get approval for credit cards, mortgages, car loans, and other types of loans, and get favorable rates and conditions.

However, according to the Consumer Financial Protection Administration, an estimated 26 million Americans are “credit invisible.” This means that they do not have a credit history with any of the three major credit agencies (Equifax, Experian, and TransUnion), or their files do not contain up-to-date information to calculate their credit score.

Your loan may not be visible if:

  • You are new to the country. Even if you have a credit history in your country, your credit history does not apply to the United States.
  • You are new to using credit. If you’ve never opened a credit account, financed a car, or taken out a student loan, you probably don’t have enough information on your credit report to have a credit rating. Or, you may have opened your account too recently to be rated.
  • You haven’t used a loan for a long time. If you haven’t used a loan in the past 10 years or so, your old accounts may have disappeared from your credit report and there is nothing left in your credit history to base your score on.

Applying for a loan to individuals without credit history

Lenders use your credit score to gauge the amount of risk they can take by lending you money. Although it is possible to get a personal loan without a credit history, it can complicate the borrowing process. And lenders who are willing to lend you money may charge you higher interest rates.

For this reason, it is important to seek out lenders who are considering factors other than what is included in your credit report. This could be your employment history, income level, debt-to-income ratio, bank statements, and more.

You can easily compare rates for personal loans via Credible.

4 best lenders offering loans without credit

If you are looking for personal loan for the first time and do not have a credit history, here are some credible lenders.


Avant offers individual loans ranging from $ 2,000 to $ 35,000.

Although most of Avant’s clients have a credit rating of 600 to 700, the company also offers secured personal loans and adapts the loan underwriting process to the unique credit situation and history of each applicant.

Minimum credit rating: 550

Repayment terms: From two to five years

Fees: An administration fee of up to 4.75% of the loan amount, a $ 25 late payment penalty if a scheduled payment is not paid in full within 10 days of the due date, and a $ 15 Dishonored payment fee.


LendingPoint offers personal loans ranging from $ 2,000 to $ 36,500.

The lender specializes in working with borrowers with lower credit ratings and claims to have “patented intelligent technology” that assesses the creditworthiness of applicants not only on the basis of a credit rating.

Minimum credit rating: 580

Repayment terms: 24 to 60 months

Fees: Registration fees can range from 0% to 6%, depending on the state of your residence.

OneMain Financial

OneMain Financial offers personal loans ranging from $ 1,500 to $ 20,000.

The company does not have a minimum credit rating for private borrowers and specializes in working with people with credit problems.

Minimum credit rating: No one

Repayment terms: 24, 36, 48 or 60 months

Fees: The registration fee can be a fixed amount from $ 25 to $ 500 or a percentage of the loan amount from 1% to 10%, depending on the state in which you open the loan.


Upstart offers personal loans from 1000 to USD 50,000

Unlike many other lenders, the company explicitly declares that it is ready to work with borrowers without a credit history.

Minimum credit rating: 580

Repayment terms: Three to five years

Fees: Loan disbursement fee ranging from 0% to 8% of the loan amount, late payment fee of USD 15 or 5% overdue balance, whichever is greater, and ACH fee for return or check refund of 15 US dollars.

Check Trust in compare interest rates on loans from different creditors.

How to get a personal loan without credit history

When applying for a personal loan with no credit history, it is important to take a closer look at it. This is true whenever you take on large financial obligations, but especially if you do not have a pre-established credit history, because the interest rates available to you are usually higher than those offered to borrowers with a good credit history. Look for lenders who pay attention to factors other than your credit rating, such as your income.

Here’s how apply for a loan no credit history.

  • Get pre-approval online. Most lenders, including the ones mentioned above, allow you to pre-qualify online without having to go through a tough credit check that will affect your credit score. This will give you an idea of ​​the rate you can qualify for without going through the full application process.
  • Compare offers. When examining your loan offers, be sure to compare the annual interest rate. The annual interest rate is a more complete estimate of how much it will cost you to borrow money, including interest rate and commissions… Also, compare the terms of the loan and the commission for the loan.
  • Apply for a loan. Once you have selected an offer, inform the lender that you want to move on and fill out a complete loan application. You will most likely need to provide additional information to the lender in order to obtain final loan approval.
  • Close on credit. Once the lender approves your loan, they will send you the final loan documents for signature. Sign the documents and the lender will transfer your funds to your bank account – sometimes within 24 hours.
  • Increase your credit. Be sure to make your monthly loan payments on time. This will help you get a loan and give you more financing options in the future.

Alternatives to personal loans with no credit history

Getting a personal loan without credit history can be difficult and costly. Fortunately, you have alternatives.

Find an accomplice

A co-ruler is a person, such as a parent or close family member, who promises to repay the loan if you stop making payments – this makes your application more attractive to lenders. Getting an accomplice can help you get a loan that you may not be eligible to get yourself, and can enable you to qualify for a lower interest rate.

Get a loan through your home bank or credit union

Your home bank or credit union may approve a loan for you based on your existing relationship with them. If you have shown that you have managed your checking or savings account well for several years, they may want to ignore the lack of credit history.

Take a secured loan

A secured personal loan allows you to use an asset, such as a car or a certificate of deposit (CD), as collateral. Since the lender can take the asset if you are unable to make the payment, lenders may be more willing to work with you and you may qualify for a lower interest rate than what is available on an unsecured loan.

Just keep in mind that secured loans can be risky – if you run into financial problems and fail to make a payment, you risk losing your collateral.

How to get a loan if you have no credit history

Important establish credit history as your payment history and credit history is 50% of your FICO credit score. A plus high credit rating makes it easier for you to make large purchases, such as buying a house or a car, at the lowest possible interest rates.

The first step in establishing your credit history is applying for a loan. Many people start by applying for a credit card.

It can be difficult to get approval for a major credit card without a credit history, so consider starting with a store credit card. Retail store cards – especially loop cards that can only be used in one store or group of stores – are easier to obtain without a credit history than co-branded cards with the logo of a major credit card issuer and can be used anywhere.

Get a secured credit card

Secured credit cards require collateral in exchange for a line of credit. The deposit is usually equal to your credit limit. As soon as you start using the card, the issuer sends you monthly reports. If you do not pay the bill, the card issuer will withdraw money from your deposit. After all, once you realize that you can handle your loan responsibly, you can upgrade to an unsecured card.

Before applying, make sure your card issuer communicates payment details to the three major credit bureaus so that your positive payment history helps you get a loan. You will also want to look for a card with a low annual fee.

Take a loan for construction loan

Loan construction loan is installment loan which exists to help people get a loan. You are applying for a loan from a bank, credit union or online lender.

Instead of giving you cash on the loan, the lender puts it in a savings account or CD. You start making monthly payments and the lender reports those payments to one or more of the three major credit bureaus, helping you build a positive credit history. After you pay off the loan in full, you will receive money from your CD or savings account minus interest or administration fees.

This can be a great way to start building credit, and loans to lending institutions are generally easier to obtain than standard loans. On the other hand, you have to wait until the maturity is over to receive your funds, and interest rates on loans to create a loan are usually high.

Become an authorized user

If your parents or other trusted friend or family member with a good credit history is willing to help you, they can add you as an authorized user to one of their existing credit cards. Timely payments and low credit card usage will help you get credit even if you never use a card. Plus, by becoming an Authorized User, you can shorten the time it takes to get your FICO score.

Trustworthy lets you compare rates for personal loans immediately from different creditors.

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