How to build credit score Safe personal loans Low-interest personal loans with APR Starting As Low As 3.49%

Personal Loans with No Credit History

You can apply and get a personal loan with no credit history. But here’s the kicker – you may be forced to part with expensive loan charges and unfriendly repayment terms. However, there are still steps you could take to rebuild your credit profile and access endless loan products.


Credit builder loans, for instance, are meant for that. In this article, we’ll review additional tips you can take to build your credit profile before applying for a loan. We’ll also cover additional borrowing options you could explore without a credit history.


These could come in handy in taking care of medical bills, paying rent, sorting out school fees, or sponsoring a vacation. We’ve also singled out some of the top lenders charging affordable rates. Take a look;

  • Lender
  • APR
  • Amount
  • 9.95% - 35.99%
  • $2,000 to $35,000
  • 15.49% - 35.99%
  • $2,000 to $25,000
OneMain Financial
  • 18.00% - 35.99%
  • $1,500 to $20,000
  • APR range
  • Fees
  • Terms
  • Amounth
  • Unemployment protection
Bank 1
  • 6.95%–35.89%
  • Up to 5% transfer fee
  • 3–5 years
  • $1,000–$40,000
  • No
Bank 2
  • 6.95%–35.89%
  • Up to 5% transfer fee
  • 3–5 years
  • $1,000–$40,000
  • No
Bank 3
  • 6.95%–35.89%
  • Up to 5% transfer fee
  • 3–5 years
  • $1,000–$40,000
  • No

Table of Contents

Why I don’t have a credit history?

Not having a credit history doesn’t always mean a borrower has a poor credit score. Most people don’t have a credit history because they haven’t had any major consumer credit bureau report any of their financial histories. 


New borrowers also tend to have no financial history since they’ve never taken any loans. Similarly, new immigrants to the US also have to build their credit scores from scratch. 


This is the same case with those who’ve just attained the age of majority – 18 years in most states.


Some also have very few details about them known by consumer credit bureaus that may not be enough to assign them a score. 


This score is what gives a lender a snapshot of how a borrower pays his/her loans and credit card debts. 


Most lenders, before making the final decision on whether or not to offer you a loan, review your credit reports. That’s why it’s hard to qualify for a loan without a credit history. 


However, personal loans with no credit history can save the day. Alternatively, borrowers can choose to build their credit profile slowly using the tips we’ll uncover later in this post.

Hot Tip:

New borrowers tend to have no financial history since they’ve never taken any loans.

Can I get a personal loan without a credit history?

Getting personal loans with no credit, though difficult, is possible. Before applying for any loan product;


  • Carry out due diligence – shop around for suitable lenders with the loan products you need. Conduct thorough research on each lender, comparing them to identify who is the best option. While at it, consider their rates, fees charged, and repayment terms. You should also familiarize yourself with the lender’s policies and guidelines. 
  • Choose a lender – After comparing the lenders, choose one whose policies conform with your financial goals and needs. Remember, you want to avoid getting a loan you won’t be able to repay. Such will only hurt your credit profile.
  • Apply for a Loan – Once you have your lender, go over their loan products and choose the one that suits your needs. That will include submitting all the necessary paperwork as requested by the lender. If your application is approved, the cash will be available for you in a timeframe determined by the institution in question. Most online institutions like OneMain Financial wire you the money within 24 hours. 


Its recommended that you apply for auto-pay so you don’t miss out on any repayments. The first and most crucial step while trying to rebuild your credit history is by making prompt repayments. 

Requirements to qualify

Personal loans with no credit history are meant for borrowers without a credit history – basically a record of how they behave when offered a loan. So, you don’t exactly need a credit history to qualify for these loans. 


However, different lenders have different requirements users must meet to be considered for these loans. 


The universal requirement is that you must have attained the age of 18 years and above. You also need to be a legal resident of the US. You prove this by showing the lender your national ID, valid driving license, or passport.


Other requirements include your proof of income such as your bank statements, latest payslips or the previous year’s tax returns, or a letter from your employer.


You’ll also need to demonstrate the ability to repay the loan. Here, you could offer a property to act as security for your loan. A close relative or friend with a good credit profile can also act as your co-signor or guarantor.

Types of loans with no credit history

    • Banks and credit unions – Banks and credit unions can easily offer you personal loans with no credit history. Once you build a good relationship with them, they’ll use such account activities as withdrawals and deposits to offer you a loan. Plus, their rates are often affordable and repayment terms flexible. 
    • Online lenders – online loans are also an excellent option. Such lenders carry out their operations purely online. They have no physical offices so their operational costs are low. They then use their saved finances to offer better rates to borrowers. Their application process is fast and straightforward. The same is with the approval of their loans. 
  • Peer-to-peer (P2P) loans – these are a subset of online loans. Here, borrowers are matched with potential investors ready to offer loans. Lending Club and Prosper are the most common peer-to-peer loan lenders. 
  • Paycheck advance – Some employers can offer you salary advances which are deducted on the subsequent paychecks. These loans often pass through third-party companies. They carry standard rates, and policies, regardless of borrowers’ credit scores. The good thing about paycheck advances is their availability when you need them. They also greatly help rebuild your credit score
  • Credit-builder loans – with these loan products, you apply, get approved, and commence repayment of the borrowed amount plus interests. However, it’s only after you’re done paying that you can access your borrowed money.


Types of loans you should avoid

  • Payday loans – these are mostly online. They don’t check the borrowers’ credit history, so they mostly target people who have poor or no credit history and need cash urgently. They charge higher APRs and have a shorter repayment period
  • Title loans – Here, you use your car as security for your loan. The lender does not do a credit check. You risk losing your car should you miss out on repayments. Their repayment period mostly varies from 15 to 30 days. They also attract very high-interest rates, making them an expensive option mostly if you are using the cash for an emergency

How much can you borrow?

How much you can borrow varies from one lender to another. Our top lenders above offer between $1,000 to $50,000.


Since you don’t need credit history while applying for these, lenders mostly check the activities of your account to determine your loan limit. While at it, they’ll check your available balance, and the frequency of withdrawals and deposits. 


Having a guarantor with an excellent credit profile can also unlock higher limits. Alternatively, you can also use your car, home, or any other valuable assets to get higher loan limits. They only have to be worth higher than the amount you’re looking to borrow.

Hot Tip:

The loan should help you rebuild your credit history, not hurt it. You want to avoid taking a loan unless it’s completely necessary. In that case, take an amount you’ll be comfortable repaying when it's due.

Tips to help you qualify

If you’re finding it hard qualifying for a loan without a credit history, the following tips will come in handy;


  • Get a co-signor – getting a co-signer with a higher credit score and a higher income-to-debt ratio will give you an upper hand with most lenders. Getting a co-signor will also attract lower rates than you’d normally pay when applying alone.
  • Go for secured loans – Secured personal loans are the easiest to apply for. The lender doesn’t check your credit background. Instead, you use a valuable asset as security for your loan. However, you risk repossession of the same should you miss out on repayments. That makes them less risky to the lender hence the lower interests.

How to establish credit if you don’t have a credit history

Despite qualifying for a loan without a credit history, it’s still crucial to build one. The easiest way to do that would be to apply for as many credits as you can. While at it, ensure you service them on time. 


Here are a few tips that could help you build your credit from scratch;


  • Go for a secured credit card – these are meant specifically for those looking to build their credit profiles. You basically make a refundable security deposit and borrow against it. They are less risky to the lenders since they can easily repay themselves using your deposit should you fail to do so. But before applying, ensure the lender will update your records and send them to the relevant national credit bureaus when you make your payments. Aim to utilize your card, However, don’t go above 30%. Ensure you make timely repayments to build your credit history even faster.
  • Become an authorized card user – find a family member or close friend with a card and sign up as an authorized user. Every time they make frequent small purchases, your credit profile is boosted. Ensure the primary owner of the card makes monthly repayments on time. Also, go for long-term accounts that have no pending balances or record of late repayment.
  • Monitor your credit records – As you continue building your profile, you’ll need to see if your records are paying off. This will encourage you to put in more effort. However, it’ll take at least 6 months for your FICO score to be calculated.

Frequently Asked Questions (FAQ)

Your credit history gives lenders an idea of your likelihood to make timely repayments on your loans or credit card debts. The absence of such makes it hard for lenders to just take your word for it that you’ll repay your loan on time.

Yes. you can do that by approaching a bank, credit union, or online lender for the same. Alternatively, you can go for co-signed loans with an individual with a good credit profile and a high income-to-debt ratio. Paycheck advances can also serve you just right. Talk to your employer and find out if they can offer you such.

No, these loan products are not a good idea for someone looking to build their credit profile. Instead, ask for loans from family and friends and paycheck advances if your employer offers such. Alternatively, you can also go for loans made specifically for that, like credit-builder loans.

That happens when you haven’t used any credit for the past 2 years. When credit bureaus don’t see any activity on your account, they’ll have nothing to report. You also lack a credit history if you’re a new immigrant to the United States. You’ll have to build your credit profile from scratch. You’ll also have no credit profile if you just turned 18. Similarly, if you’ve never taken a loan before, you won’t have a credit history.

Payday loans and title loans are a no-go zone if you’re looking to build a good credit profile. They carry high interests and could hurt your credit profile further. You should also avoid pawn loans. Instead, go salary advances, soft loans from friends, and secured personal loans.

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