Is There a Way to Get Loans With No Credit?

loans with no credit

Whether you’re navigating your first-ever loan or have a little credit history, you may have trouble finding a lender to work with. However, that doesn’t mean there aren’t any options available to you. Oftentimes, there are certain personal loans available from lenders like KingCash for people searching for loans with no credit. But what does having no credit mean? And how is it even possible to get no credit check loans or loans with little to no credit? 

What Does Having No Credit Mean?

To understand why lenders are wary of no credit borrowers, you must first understand the importance of credit and credit history. Credit is essentially the ability to borrow money now by promising you will pay back the money later.

That’s why an extensive history of good credit shows reliability to a lender and a higher chance of them working with you. 

Credit history covers any past debt and your current credit status that lenders can access through credit reports. Additionally, every person has the right to access a free credit report every twelve months without affecting their credit score. 

But about when someone has little to no credit history? What happens then? This becomes an issue because it’s rather difficult to generate a credit report without any history! 

However, little to no credit is a much more common occurrence than one would think. In fact, there are over 45 million adults with credit profiles so thin they can’t generate a credit score and no credit score at all. 

The good news is that having no credit is different from having bad credit. People may have no credit or be “credit invisible” for many reasons. Some include:

  • Never having applied for a loan or credit card in the past
  • Any credit accounts they may have lack recent activity
  • Closed credit accounts
  • Their credit account was opened very recently
  • Credit history isn’t being reported

Having no credit is certainly a barrier when it’s time to borrow, but it doesn’t mean getting loans are out of reach, and it may be easier for you than for those looking for bad credit loans. 

Can I Get Loans With No Credit?

The most common type available to those that are credit invisible is a personal loan. Oftentimes, these are no credit check loans, which means even if you have a bad credit score, you may still qualify. 

However, these types of loans may potentially come with higher interest rates, depending on the lender, which will ultimately increase the borrowing costs. 

What Are My Loan Options?

In addition to personal loans, a few other options are available to get a loan with no credit. These include:

  • Online lenders like
  • Local credit unions
  • Banks
  • Getting a cosigner
  • Collateral or secured loans
  • Bad credit personal loans
  • Borrowing from friends and family

If you look online, some lenders like King Cash offer quick loans to people with no credit. But you must conduct your due diligence to ensure these are quality lenders with fair and reasonable terms. The last thing you want is to get approved for a loan with an online lender that has unrealistic and even barbaric lending terms like some paycheck advance centers.

Although surprising, if you look hard enough, some lenders like your local bank or credit union may offer loans with no credit history. 

However, this is generally only available if you have an established relationship with the lender. They’ll consider several variables such as your regular deposits, spending habits and overall responsibility. 

You can also ask a family member or a close friend with a strong credit score to cosign on your loan. Having a cosigner comes with a higher chance of getting approved for a loan with decent terms. 

Additionally, making payments on time with a cosigner can help you build a positive credit history for future use. But be aware that cosigning is serious, and any missed payments will cause a severe dent in your cosigner’s credit score. 

However, if these options aren’t viable, you can look into alternatives that may even help you build credit for future loans by making payments on time. 

Credit Building Alternatives to Personal Loans

The first alternative is to get yourself a secured credit card. This type of credit card requires a security deposit, similar to what you’d pay a landlord when renting. 

The actual credit limit and required deposit will vary with each lender, as well as the deposit refund terms. This option is best for those that want to build their credit history and are okay with paying a lump sum security deposit. 

If you’re a student looking to build your credit score, you may want to consider getting a student credit card. This is especially helpful in laying the foundation for your credit history for future loans, like when it’s to pull a mortgage.

Many lenders offer credit cards specifically for students who are new to credit. 

Another quick way to build your credit history is to become an authorized user on the credit card account of someone you trust. Depending on the issuer, you may receive your own credit card, but ultimately, the original cardholder is responsible for making payments on time each month. 

As long as the credit card is used appropriately and the activity is reported to the credit bureaus, you will see your credit score grow rather quickly. However, you must be aware that any negative activity on the card can affect you and your credit score. 

The last method is to get a credit-builder loan. These are small loans, typically between $300 and $1,000, which are then deposited into a secure account. 

However, unlike other personal loans, you won’t have access to the money until you pay off the amount in full. Typically, this is in installments over a specific period. 

Getting The Cash You Need

Finding loans with no credit is neither quick nor easy. Fortunately, although difficult, it’s entirely possible. Consider your specific situation and go with the loan option from this list that best suits your needs. 

Once you have a loan secured, you must pay your monthly payments on time to start building a positive credit report and ultimately be able to secure higher loans in the future. 

Are you looking for a quick loan with no credit? Apply online or renew today for same-day approval! 

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