How to Get a Loan With No Credit

online loans no credit check

If you have no credit history, you really have the work cut out for you in finding a lender. A non-existent or thin file means you are not trustworthy in the eyes of the credit bureau.

You can try a no-credit-check loan, but those are often risky and have over-the-moon interest rates and short repayment periods. Of course, there are other financing options like installment loans and cash advance apps that can give you access to cash without hard credit checks.

Whichever path you take, it’s important to research the lender as well as the terms and rates they provide to make sure you will be able to repay the loan. Read up on this guide to navigate various financing options and help you find the best way to finance with no credit.

Can you get a loan with no credit?

Yes, it’s possible to get a loan with no credit, however, you are likely to be hit with unfavorable terms.

Instead of using collateral to cover the risks of lending money, lenders assess your credit history and financial status. A lack of credit score scares lenders as they are left with nothing to judge whether or not you are a trustworthy borrower.

A thin or non-existent credit file will force lenders to protect themselves by enforcing increased interest rates and shorter loan periods. Some will refuse to lend you any money at all.

How to get a first-time loan with no credit

As stated by finance expert Alice Rose from COMPACOM, acquiring a personal loan without a credit history is tricky yet still possible. Consider the following options if you are in desperate need of money to cover your expenses.

Can you get a loan without a credit check?

There are loans that don’t require you to go through a credit check but as a consequence, they entail lenders proposing jaw-dropping annual percentage rates. These types of loans are also short-term, so it can be very difficult to repay them on time.

The most common no-credit-check loans are:

Which Steps to Make:

Check for online lenders

There are online lenders who offer loans to borrowers without checking their credit. Instead, they may ask you to connect with your bank account and analyze your financial history. Other information like where you attended college, your major, and your grade point average may also be used to determine your eligibility for a loan.

Like with any other options, make sure you understand the terms of the loan and are sure you can pay it back.

Ask your bank or credit union

If you have an established relationship with your home bank or credit union, it’s where you should start looking for a no-credit loan. A bank or credit union can pull up your account and analyze your financial health parameters, such as how regularly you make deposits or your spending habits. Identifying how responsible you are in personal finance helps them identify if you qualify for a loan.

Find a loan co-signer

Having a co-signer seriously increases your chances of obtaining a personal loan. In this case, the lender’s risks are covered by the co-signer and your credit score does not have to be weighed in.

Backed by an individual with strong credit history you can even get a loan with more favorable terms compared to what you would have been offered in the first place. However, make sure you will be able to pay back diligently, without hurting the other person’s credit score.

Ask for a paycheck advance

A paycheck advance is a kind of loan you can take from your employer and then repay through deductions from your monthly paychecks. These loans are managed via an agreement with third-party lending firms and are provided with no credit score checks. It means the interest rate and terms will not depend on your credit history.

A great thing about paycheck advances is that they play into your credit score and improve your credibility. Just make sure you can afford the deduction from your monthly income.

Borrow from family or friends

Desperate times call for desperate measures. If traditional financing doesn’t work for your situation, consider asking your relatives or friends. You can treat this as a regular transaction and enter into an agreement where you promise to pay back the loan under the terms and conditions that you have discussed.

Opt for a credit builder loan

Credit builder loans operate opposite to traditional loans in the way that you receive money at the end of the loan’s term, once you’ve paid for the entire amount. The purpose of this is to collect a sum of money in a savings account while at the same time building up your credit history and score.

Your monthly payments are applied to the principal and interest part of the loan and are then reported to the credit bureau. Although it’s not an option when you are in an emergency, credit builder loans are a good way to get you out of the situation you found yourself in the first place.

Why are no-credit-check loans a bad idea?

What unites these loan opportunities is their triple-digit percentage rates which could easily lead you into a cycle of debt. Backed into a corner, some borrowers try to pay their debts by taking another loan. Oftentimes, this battle with debt could become neverending. So if you do decide to try a no-credit-check loan, carefully weigh your options and create a sure plan to pay the lender back.


Applying for loans with no credit is definitely not a walk in the park, however, with the right approach it’s very much possible. Whether you choose one of the workarounds, opt to go with a no-credit-check loan, or wait to gradually build your credit, the important part is to make grounded decisions that will improve your financial health. Taking small steps towards building credit, making payments on time, and checking up on your credit score will have you on the way toward more appealing loan options in the future.