Loan options for people with no credit history

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Loan options for people with no credit history

Loan options for people with no credit history


Updated: September 27, 2018

The content is accurate at the time of publication and is subject to change.
Credit history is an important part of finances which we cannot avoid, even if it is a bad one. Credit history is the document that will be checked by anyone who wants to verify a person’s credibility and background. Having a good credit history reflects the positive side of the person, and ensures that the person is bankable. Bad credit history can be repaired in many ways, and can be improved over time to reflect good scores. Although credit cards are the main reason for debt situation, they are the easiest way to build a good credit history too. Applying for loans, purchasing automobile, and even renting an apartment becomes very difficult without credit history. Although having credit history is very important, some people like to manage their finances without the risks of the credit cards. Here are some ways to deal with the no credit history situation, when credit checks are needed: No credit Loans Loans are very necessary when it comes to resolving a financial crisis. But obtaining loan is not easy without going through a credit check first. All loan companies depend on credit checks to ensure that the person applying for loan is credible. But there are ways for people with no credit history to obtain loans too:
  • Money lenders usually provide loans without credit checks for little higher interest rates. Short term loans that have to be paid off within a year or so will be available too, for some extra money.
  • Employment record can serve as a proof for credibility, instead of credit checks. For loans without credit checks, employment records must be presented at the time of applying for the loans.
  • Having a cosigner might help in getting better rate for the loans. But finding a cosigner is not that easy, since the person signing up must be willing to take the risks in case the loan cannot be paid off.
  • Payday loans can be taken if there is a crunch at the end of the month. This must be returned immediately though, otherwise the penalties can be quite high.
  • Talking to local banks may be one option to get a no credit check loan. Since they hold the account of the applicant, credit check may not be necessary.
  • Automobile loans can be obtained from the dealer selling the automobile. Although the interest rates are higher than the other banks, it saves a lot of paperwork associated with credit checks. This facility may not be available with big and popular auto dealers.
  • Home loans need a bit more work, since the amount required is a lot higher. Getting recommendation from landlords, employers and colleagues will help strengthen the application.
  • Checking in the local papers for no credit check loans can give an idea about the loan companies and banks lending unsecured loans.
Taking a loan not only helps relieving financial tensions, but also helps in building credit history. If a person is planning to apply for credit cards, loans are a great way to build a good credit history and get approved for a credit card.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!