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Having a valid credit history that is available for credit checks is always an added advantage in today`s credit driven world. Credit history can make financial transactions much simpler. Having no credit history means having no reference to prove credit worthiness. As difficult as it may seem to carry out financial transactions, it is not however, impossible. Credit history can be built by simple method of signing up for a credit card. But if credit card is not an option, then applying for a loan would be a good starting point.

Although most loan companies and banks need credit checks to approve loans, there are some options for people without a credit history to explore.

Unsecured loans:

The biggest source to explore for unsecured loans is the Internet. There are many money lenders who give personal loans without performing credit checks. But the only downside of these loans is the comparatively higher interest rates. A simple search will give comparison for the best loans available with best interest rates. Since it is readily available on the internet, it takes lesser time for research and signing up for the loans. A valid employment proof or income proof is needed at the time of signing up for a loan, which acts as a substitute to credit checks. Since these loans do not need a credit check, they might have different application requirements depending on the money lender. The loans may take a shorter time if the documents are verified immediately, but sometimes may take a longer period of time, owing to detailed verification process.

Payday loans:

Payday loans are available for people who are employed and can produce a valid employment record with the proof of income. These loans are fairly easy to obtain, but the condition to apply for these loans are different from the regular loans. Payday loan applicants must be 18 years of age or older. The employment time period before applying for the loan must be at least three months. The loan amount that can be sanctioned depends upon the income of the individual applying. Application process for payday loans is fairly simple. The applicant must have a valid bank account to which the loan amount will be transferred after the loan is approved. Payday loan applicant must provide a post dated check to the money lender including amount of the interest rate. These loans are suitable only when they can be returned within a very short span of time. The loan can be deferred only for a couple of weeks, but at the price of high interest rate.

Loan with a Cosigner:

Having a cosigner is beneficial in some ways. Firstly picking a cosigner with good credit history will give better interest rates in loan and relaxed payback options. Also, having a cosigner requires the individual to complete the loan installment on time and in full. The individual applying must be aware of the fact that in the case of a missed payment, the cosigner will be held responsible for the loan amount.