You can get a bank loan with no credit by applying for a secured personal loan, a credit-builder loan or a personal loan with a cosigner. Banks typically do not offer unsecured personal loans to people with no credit history, who have yet to prove themselves as trustworthy borrowers.
Ways to Get a Bank Loan with No Credit
Secured personal loan
A secured personal loan requires you to put up something as collateral, such as your vehicle or money in a savings account. If you fail to repay the loan, the lender can keep the collateral. Some of the best banks for secured personal loans are PNC OneMain Financial and Regions Bank.
With a credit-builder loan, the lender will place money into a savings account for you. You will then need to make payments to the lender over a set amount of time. These payments will add up to the amount of money the lender puts in the savings account plus interest. Once you make all the payments and the loan term is up, the lender will give you the money in the savings account.
Sunrise Banks is one of the best banks for credit-builder loans. To read more about the top-ranked offers, check out WalletHub’s picks for the best credit-builder loans.
A cosigner is a person who can help you qualify for a personal loan if they have a high enough income and credit score. Keep in mind that if you are unable to repay the loan, the cosigner will have to repay the loan for you.
TD Bank is one of the best banks offering cosigner loans. You can find more options among WalletHub’s picks for the best personal loans with a cosigner.
Alternatives to Bank Loans with No Credit
It’s smart to consider some alternatives to bank loans with no credit, such as getting an unsecured credit card, a secured credit card or a loan from a friend or family member.
On the other hand, you’ll probably see payday loans and auto title loans advertised as loans for no credit. You should avoid these loans because they are very short-lived and expensive.
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