Ten Ways to Get a Loan if You Have No Credit History
Having a low credit score or no credit is frustrating as it limits your options and sometimes makes it impossible to get a loan. But there are ways you can do to work around it. All you need is to research the available options you’ve got and make the decision on how you will manage it in the long run. Having no credit record might be useful for you in some ways. You have a clear history, and at least it will be favorable once you apply.
Here are ten easy ways you can get a loan if you have no credit history:
Apply with a Co-Signer
A co-signer or a guarantor with excellent credit history can be a big help as they will provide you the security of availing loans from lenders. Trust is a common factor here as this involves the same responsibility of both. Though the co-signer has no intention to make any payments, they commit to taking responsibility if the borrower fails to pay.
Look for No Credit Specialized Lenders
There are a lot of lenders who specialize in no credit options. Compare their services to avail the best choice and make sure to steer away from those with massive payments and charges. It will also help if you avoid those scams like upfront fees and those that will only take advantage of your desperate situation.
Avail a Credit Builder Loan
Another way of building a good credit and payment history is to have a credit builder loan. Different from regular or standard loans, this type goes into your savings or cash deposit. The lender helps you in providing enough cash in case you purchase as they act as the loan collateral.
Get a Secured Credit Card
Thin-file borrowers are those with limited credit histories. The cardholder has a cash deposit which sets its coverage. The cash deposit lessens the risk to the lender. People with bad credit history usually choose this. It provides a useful reference for the lenders on the creation of your payment history.
Have an Alternative Data
Sometimes, credit history does not accurately track or record financial accountability. Some lenders consider alternative data as an important factor in approving your loan. Your financial behavior is vital to your chances of lenders on their decisions.
Make a Large Downpayment
When you purchase credit, your downpayment plays an important factor. A higher downpayment reduces the amount that you are going to borrow. The risk is much lower as the possibility of you defaulting later is seen as a guarantee.
Take the Option of Manual Underwriting
This involves a lot of extensive paperwork and evaluation, but if your financial record is clean, your chances of getting approval will be very high. The lender will review your application with your other supporting documents guarantees your ability to repay your loans.
This allows you to avail credit to a person or a group instead of lending through online websites. They choose the borrowers after reviewing the list that the borrower posts on their website. They also take into consideration the certifications of your history. Lower interest attracts people already with bad credits on availing.
Borrowing from Friends or Family
One of the easiest ways to get a loan is through the people around you. Approval and terms are far different from lending companies in comparison. It is also a business deal as the process of evaluation and qualification is less, but even if it is a relative or friend, avoid conflict by paying on time so that you won’t jeopardize your relationship with them.
You should get a written contract or proper documents, and there should be a record stating the amount, interest rates, payment terms, and the aftermath in case you fail to pay on time.
Become an Authorized Credit Card User
One way of building good credit is to become an authorized user of credit cards. If the owner of the account is a good payer, then it will reflect on you as you are also an authorized user. Some creditors report late payments, and this may also affect your credibility.
Though living without debt is the best option, sometimes needs arise that are more than our financial standing can handle. It’s not a crime to take out a loan; make sure that you understand what you are getting yourself into.
More in Loans & Mortgages
Method Acting: Taking Entertainment to the Next Level
We all know that actors each have an acting style of their own. When an actor decides on a unique technique...May 18, 2020
How Coronavirus Caused a Paradigm Shift in the Entertainment Industry
All those Friday night movie plans, eagerly waiting for your favorite movie to hit the screens, grabbing that tub of popcorn,...May 18, 2020
Not Sure Where To Start Decluttering For Retirement? We Can Help!
Many folks who retire don’t downsize as much as they should. When you entire your new lifestyle of being retired, you...May 18, 2020
Four Things to Do If You Are Planning to Retire in 2020
For people who are contemplating retiring from work or have fixed a date to call it a day, the most common...May 15, 2020
Are You An Entrepreneur? You Need Kanban!
If you’re running or starting up a home business, you will know how overwhelming it can grow to the point that...May 14, 2020
These Celebs Successfully Pulled Off Disappearing Acts – For Good!
More and more celebrities are choosing to steer clear of the limelight, keeping their private life more private and simply living...May 13, 2020
FCA Has Just Asked the Finance Firms to Halt the Payments of Car Holders
FCA has asked the finance firms to freeze the payments of the car holders and to not repossess the cars from...May 10, 2020
How a Call Can Solve Your Financial Problems from Credit Card Bills to Unpaid Debt
It’s a fact of life. Debt and bills don’t just fade away even when one goes through financial troubles or the...May 8, 2020
Seven Factors That Affect Your Home Loan Interest Rate
Thank heavens for home loans. Home loans are a type of financial aid that makes it possible for many to have...May 7, 2020