How to get a loan with no credit

By Matt Mayerle
Modified on June 6, 2023
loan no credit

Shopping for a quick cash loan is complicated enough as it is. But shopping for a quick cash loan if you have no credit is even more difficult. 

There are so many different types of loans, lenders, and terms that you need to research before making your final decision and signing for your loan. But if you have bad credit, or even no credit at all, it makes this process all the more stressful. 

If you’re in need of a personal loan and you have no credit history, read on to learn more about your potential loan options. 

No Credit VS. Bad Credit

There could be a number of reasons why you don’t have a credit score. In most cases, people without a credit score simply haven’t had any open credit accounts long enough to generate a score. 

This means that you haven’t had a credit card, a personal loan, or perhaps you haven’t had any bills in your name. While it is still difficult to get a good loan without a credit score, it doesn’t mean you have bad credit. 

If you don’t currently have a credit score, it’s recommended that you open a credit account so that you can start building your credit history, and eventually you’ll have a score. You may be able to find a credit card that you can open without a credit history. 

Other options would be to open a joint loan or a loan with a cosigner, this way you can start making payments on a credit account and building up your credit history. 

Loan Options if You Have No Credit

Having no credit won’t completely bar you from getting quick cash when you need it. If you find yourself in a cash emergency, and you aren’t sure what kind of loans may be available to you, you may want to consider one or more of the following options:

Friend or Family Member Loan

Getting a loan from a friend or relative can be a good option if you’re in a bind and need some fast cash, but can’t get approved by a lender because you don’t have a credit score. The downside here is that borrowing money from someone close to you can strain your relationship if you have a hard time repaying the money. 

If this is your best option for fast cash, we recommend having someone draw up a contract for the loan, just like you’d have for a regular personal loan. 

Peer-to-Peer Loan

These kinds of personal loans are becoming much more common than they were even a few years ago. With a peer-to-peer loan (or P2P) you’re essentially just borrowing money from another person rather than a lender, bank, or credit union. 

There are several websites that allow you to search and apply for peer-to-peer loans. A few of the most popular P2P lending sites are LendingClub, Peerform, and Upstart. With these loans, you might be able to find someone willing to work with you even if you don’t have a credit score. 

Cosigner or Joint Loan

Getting a loan with a cosigner, or even a joint loan may be possible even without a credit history. A cosigner is someone who signs onto the loan contract, promising to make the payments on the loan if you fail to pay. This would likely need to be someone with a decent credit score, to show the lender that they’re creditworthy and capable of repaying the loan. 

A joint loan is similar, but in this case the other person is signing for the loan to share equal responsibility in repayment. So instead of the other party only paying in the event that you can’t, they would be making payments with you throughout the life of the loan. 

Payday Loan

A payday loan is an unsecured loan that many people turn to when they need quick cash. These loans are short-term, meaning they are usually paid back in a very short amount of time. They also tend to carry higher interest rates than other personal loans, since the borrowers who use them tend to have low credit scores. 

If you’re considering a payday loan and you don’t have a credit score, you might be able to talk to the lender directly to convince them to give you a chance. If they’re willing to consider offering you a loan, they may require some additional documentation from you such as bank statements, or current income information. 

In Summary…

It isn’t easy to get a quick cash loan if you don’t have a credit history, there are also no credit check loans. But it is possible. It will require more research, talking to a lot of lenders, and providing a lot of information and documentation. 

For more great personal finance blogs, check out the rest of the CreditNinja Dojo!

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