How to Get a Loan With No Credit

By Valencia Higuera

  • Overview

    Your credit history says a lot about you; and if you don't have a credit history, some lenders will not approve your loan request. A person's credit report reveals his debt amount and credit habits, and lenders use this information to determine loan approval and interest rate. Without this information, lenders can't assess your level of responsibility. However, there are ways to obtain a loan with no credit. These loans can help you establish a credit history and qualify for low rates in the future.
    How to Get a Loan With No Credit
    • Step 1

      Gather your financial documents. To qualify for a loan, you'll need to have steady employment and regular income. Lenders verify this information before approving your loan request. Grab your most recent paycheck stub or banking statements and make copies of these documents.
    • Step 2

      Request a credit report. Even if you don't have a credit history, it doesn't hurt to order a copy of your free report before applying for a loan. Reporting errors are common, and you may find another person's information on your credit report. Obtain a free report from Annual Credit (see Resources). Check the report for errors. If you find unfamiliar accounts, contact the original creditor and the credit bureau.

    • Step 3

      Maintain a savings or checking account. If you want to build a good credit history, contact your bank or credit union and speak with a loan officer. Some financial institutions offer small loans to long-term customers--even those with no credit history. To qualify, your account must be in good standing. In other words, you can't have any bounced checks or overdraft incidents.
    • Step 4

      Locate a co-signer. Ask a parent, sibling or spouse to co-sign the personal loan. Co-signers need a good credit history and must be willing to accept responsibility for the loan if you default. Because this person becomes a co-debtor, lenders base loan approval on the contents of her credit report.
    • Step 5

      Get a secured loan. One of the quickest ways to obtain a loan with no credit history is to have collateral or security. The collateral's value must be equivalent to the loan balance. In the event of default, lenders can rightly claim and sell your personal property to recoup their money. Acceptable collateral may include a vehicle title, boat title, electronics or jewelry.
    • Skill: Moderately Challenging

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