Are you one of the 26 million Americans who are credit invisible?
When you are credit invisible, you don’t have enough credit history to have a real score or worthiness rating. While this may not sound so bad, it can make it difficult to be approved for credit.
Lenders won’t take a chance on someone without a credit history because they aren’t sure how you handle debt. If you need a loan, credit invisibility can become a major problem. Fortunately, there are ways to borrow money without a long credit history.
If you need and are wondering how to get a loan with no credit, this short and simple guide is for you.
1. Join a Credit Union
One tip for how to get a loan with zero credit is to join a credit union.
Typically, credit unions are a little more flexible with their lending program requirements, especially for smaller loans. If you don’t need a large amount, consider working with a credit union.
2. Consider a Payday Loan
One of the most common loans with no credit check are payday loans.
These are short-term loans, you borrow the funds and pay them back on your next payday. Payday loans are ideal if you have an emergency and need funds in a hurry.
Contact your local payday loan lender for expert advice on income-based loans.
3. Find a Co-Signer
One way to be approved for a loan is to have someone co-sign the loan for you.
A co-signer is someone who has a favorable credit history and agrees to take responsibility for the loan if you do not pay.
If you cannot qualify on your own, a co-signer is a great option.
4. Use Collateral
A great tip for how to get a personal loan with no credit history is to use collateral. You can use your car title, jewelry, or any other valuables you have.
If you default on the loan, the lender will keep your collateral in place of payment.
5. Use a Credit-Builder Loan
Another option is a credit-builder loan. These loans are designed for those who have little to no credit history.
Credit-builder loans are usually approved for a few hundred dollars, making them ideal if you need to borrow a small amount of money.
6. Ask a Family Member
If you are out of options, consider asking a family member for a loan.
If you do ask a family member, make it official by creating an agreement and having both parties sign it. This should be your last resort as borrowing money can cause a lot of problems between family members.
By using these tips for how to get a loan with no credit, you can get a loan in no time.
Join a credit union and take advantage of their flexible lending policies. If you need emergency cash, consider applying for a payday loan.
You can use collateral, find a co-signer, or apply for a credit-builder loan. If all else fails, consider asking a family member for a loan. Know that you do have options, even if you are credit invisible.
Don’t forget to browse our site for all your personal finance needs.
