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If you need to borrow money but have little to no credit history, you might have a hard time finding a lender to work with. However, there are some personal loan lenders that offer no-credit-history loans with other qualifying criteria.
Here’s what you should know about no-credit-history loans:
- 4 lenders who offer loans to people with no credit history
- How to get a loan with no credit history
- Watch out for predatory loan practices
- How to build credit history
4 lenders who offer loans to people with no credit history
Several lenders offer bad credit loans — however, having bad credit still means you have some sort of credit history.
If you have no credit history at all yet, you likely don’t even have a credit score. In this case, you’ll need to find a lender that lets you potentially qualify in a different way besides just your credit.
Here are Credible’s partner lenders that offer personal loans to borrowers with no credit history:
|Lender||Fixed rates||Loan amounts||Min. credit score||Loan terms (years)|
|9.95% - 35.99% APR||$2,000 to $35,000**||580||2, 3, 4, 5*|
*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
**Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.
|15.49% - 35.99% APR||$2,000 to $25,000||580||2, 3, 4|
|18.00% - 35.99% APR||$1,500 to $20,000||None||2, 3, 4, 5|
|8.27% - 35.99% APR4||$1,000 to $50,0005||580||3 to 5 years4|
4The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 25.79% and 36 monthly payments of $37 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
5This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information received in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Duplicate offers received are void. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the www.upstart.com website.
Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.
6If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.
With Avant, you can borrow $2,000 to $35,000**. Avant offers flexible credit requirements, which could make it easier to qualify if you have poor or no credit history.
LendingPoint specializes in working with borrowers with near-prime credit scores and might also be willing to work with borrowers who don’t have a credit history.
In addition to credit, LendingPoint will also consider your employment and annual income.
Unlike some personal loan lenders, OneMain Financial offers both unsecured and secured personal loans. If you opt for a secured loan, you’ll need to provide collateral — like a car, boat, or RV.
A secured loan might be easier to qualify for if you don’t have a credit history. If you’re approved, you’ll need to visit a branch office in person to discuss your options.
If you don’t have a credit score at all, Upstart could be a good choice. Upstart uses machine learning to “price credit,” meaning you could qualify if your education and job history demonstrate potential that’s not reflected in your credit score.
Learn More: Where to Get a Personal Loan
How to get a loan with no credit history
Getting a personal loan with no credit history might be tough, but it’s still possible. If you’re ready to apply, follow these four steps:
- Research and compare lenders. Be sure to compare as many lenders as you can to find the right loan for you. Consider not only interest rates but also repayment terms and any fees charged by the lender.
- Pick your loan option. After comparing lenders, choose the loan option that best suits your needs.
- Complete the loan application. Once you’ve found a lender, you’ll need to fill out a full application and submit any required documentation, such as bank statements or pay stubs. If you’re applying with no credit history, you might also need to provide your employment history or other information, depending on the lender.
- Get your loan funds. If you’re approved, the lender will have you sign for the loan so you can get your money. The time to fund for personal loans is typically one week or less — though some lenders, such as OneMain Financial, will fund loans on the same or next business day after approval.
If you’re still having a hard time qualifying for a personal loan with no credit history, here are a couple of other options to consider:
- Find a cosigner. Having a creditworthy cosigner can improve your chances of getting approved for a loan if you don’t qualify on your own. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.
- Apply for a secured loan. While many personal loans are unsecured, some lenders also offer secured personal loans that require collateral, such as a car or other valuable item. These types of loans are less risky for the lender, which could make it easier to get approved even if you don’t have a credit history. A secured personal loan might also come with lower interest rates compared to unsecured loans.
Check Out: What You Can Use a Personal Loan For
Watch out for predatory loan practices
While there are trustworthy lenders that offer no-credit-history loans, there are also predatory lenders to watch out for.
For example, if you’re looking for a personal loan that doesn’t require a credit history, you should generally avoid the following types of loans:
These types of loans often charge astronomically high interest rates and fees — sometimes 300% to 500% APR. They also have ways of keeping you trapped in debt for even longer.
Your payments on these types of loans are also generally not reported to the credit bureaus, meaning they won’t even help you build credit that could help you qualify for better loans in the future.
Ultimately, these loans aren’t worth it unless as an absolute last resort.
Whether you opt for a personal loan or another type of no-credit-history loan, be sure to consider how much the loan will cost you over time. You can estimate how much you’ll pay for a loan using our personal loan calculator below.
Enter your loan information to calculate how much you could pay
With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan.
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How to build credit history
It’s a good idea to focus on building your credit history so you can more easily qualify for loans in the future.
Having good credit can help you in your everyday life, too, such as if you want to rent an apartment or get competitive rates on insurance.
Here are a few ways to build credit history:
- Take out a small secured loan or a credit-builder loan. Payment history makes up the biggest chunk of your credit score, which means making on-time payments over the life of a loan can help build your credit history.
- Get a secured credit card. This type of card is secured by a deposit and can help diversity your credit. Be sure to make on-time payments.
- Ask if you can be an authorized credit card user for a trusted friend or relative. You typically don’t even have to use the card for this to improve your credit.
Keep Reading: Emergency Loans: How to Get a Personal Loan Fast
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.