How to Get a Loan With No Credit

Grace Enfield, Content WriterNov 30, 2022

Grace Enfield, Content Writer
Nov 30, 2022

To get a loan with no credit, start by comparing loan offers to identify the least expensive option that will accept applicants with limited or no credit history. Then, apply for the loan online, by phone or in person, depending on the lender. Your options to get a loan with no credit include credit-builder loans, personal loans and more.

1. Choose the Right Type of Loan for Your Needs

People with no credit may be able to get unsecured personal loans, secured personal loans and credit-builder loans, among other types of loans. Each type has different approval requirements, APRs, loan amounts and repayment periods. Keep in mind that if you’re approved for one type of borrowing method, you may not get approved for a different type.

Unsecured personal loans

Unsecured personal loans do not require collateral for you to be approved. Getting an unsecured loan can be difficult since not requiring collateral increases the risk for the lender. However, there are a number of lenders that offer unsecured loans that don’t require a specific credit score.

Secured personal loans

Secured personal loans require you to put up something you own as collateral to take out the loan. Some possible things you could use as collateral include your car, property, stocks or money in a bank account. If you default on the loan, the lender can take your collateral as repayment so they don’t lose money.

People with no credit shouldn’t have trouble getting approved for a secured personal loan, as they’re generally targeted toward people who have bad credit.

Credit-builder loans

A credit-builder loan is the avenue to pursue if you don’t need cash immediately and are just looking to establish credit history. Credit-builder loans are fairly simple: The lender puts a sum of money into a savings account for you, and you repay that sum over time. The lender reports those payments to the credit bureaus each month. At the end, you receive access to the account, so you get the money.

The best places to look for credit-builder loans are your local credit unions and banks. If you need cash right away, you’ll have to try another option.

Mortgages

Mortgages allow people to buy a home without having enough money to pay for it up front. You can live in the home while paying off the mortgage, but the financial institution that gave you the mortgage owns the property until you pay off the loan. If you don’t pay it off, you risk losing the home.

Along with conventional loans, the Federal Housing Administration, the U.S. Department of Agriculture and the U.S. Department of Veterans Affairs offer mortgages to borrowers without credit. You will have to meet specific age, income or occupancy requirements, though.

Auto loans

An auto loan lets you pay off the purchase of a new or used car over time. These loans are secured by the car being financed, so if you don’t repay the loan, you can lose the vehicle. No credit auto loans may be expensive, though.

Payday lenders

A payday lender gives you a loan that you will pay back with your next paycheck. Avoid these loans at all costs – they are predatory and charge gigantic fees.

Auto title lenders

An auto title lender can give you a small loan equal to a portion of the value of your car, but it’s not a good option. If you don’t repay the loan, you risk losing your car.

Pawn shops

A pawn shop will purchase your items for a fraction of their value, which you can repay with interest in order to get the items back. If you don’t pay, the shop can keep and sell your items.

2. Check Your Credit Score and Pre-Qualify

Checking your credit score will help you understand which loans you have a good shot at qualifying for, making comparison-shopping easier. You can check your credit score for free on WalletHub.

You can also use WalletHub’s free pre-qualification tool to estimate your approval odds for various personal loans and see what rates may be available to you.

3. Compare Your Options and Choose a Loan Offer

In general, the best loans for people with no credit have relatively low APRs, long repayment periods, large dollar amounts and fast funding timelines. You may have to pay a personal loan origination fee if you have bad or no credit, though.

Upstart: Best Overall

The best personal loans for people with no credit are available through Upstart. These loans typically have APRs of 5.35% - 35.99%, dollar amounts of $1,000 - $50,000 and funding as soon as one business day after approval. Upstart will do a hard pull of your credit when you apply but only a soft pull when you pre-qualify.

Funding Timeline: As soon as 1 business day after approval
WalletHub Editors’ Rating: 3.4/5
BBB Rating: A+
APRs: 5.35% - 35.99%
Loan Sizes: $1,000 - $50,000
Minimum Credit Score: None
Origination Fee: 0% - 8%
Payoff Period: 36 , 60 months

Oportun: Best for Short-Term Loans

The best short-term personal loans for people with no credit are from Oportun because the company offers repayment periods of 6 - 46 months, APRs up to 36% maximum and fast funding. Oportun does a hard pull of your credit when you apply, but the company also accepts people with limited or no credit.

Funding Timeline: As soon as the same day you apply
WalletHub Editors’ Rating: 2.4/5
BBB Rating: A+
APRs: 36% maximum
Loan Sizes: $300 - $12,000
Minimum Credit Score: Not disclosed
Origination Fee: Depends on the customer
Payoff Period: 6 - 46 months

NetCredit: Best for Long-Term Loans

NetCredit offers a wide range of loan amounts with repayment periods of up to 60 months. However, many of the loan terms vary by state. NetCredit does not disclose a specific credit score requirement, but the company does consider people with bad credit.

Funding Timeline: 1 - 3 business days after approval
WalletHub Editors’ Review: 2.5/5
BBB Rating: A+
Range of APRs: 36% - 155% (varies by state)
Loan Sizes: $500 - $10,500
Minimum Credit Score: Not disclosed but will consider people with bad credit.
Origination Fee: 1% - 5% (varies by state)
Payoff Period: 6 - 60 months (varies by state)

Integra Credit: Best for Small Loan Amounts

Integra Credit offers loan amounts of $500 - $3,000 with payoff periods from 6 - 18 months. Integra Credit won’t do a hard pull of your credit when you apply, which makes these loans easy to qualify for, even for people with no credit or bad credit.

Funding Timeline: 1 - 2 business days after approval
WalletHub Editors’ Rating: 1.9/5
BBB Rating: A+
Range of APRs: 99% - 300%
Loan Sizes: $500 - $3,000
Minimum Credit Score: Not disclosed
Origination Fee: $0
Payoff Period: 6 - 18 months

OppLoans: Best for Fast Funding

OppLoans offers a very fast funding timeline, from 1 to 3 business days after approval. Plus, the company does not do a hard pull of your credit when you apply, which makes these loans easy to qualify for.

Funding Timeline: 1 - 3 business days after approval
WalletHub Editors’ Rating: 2.4/5
BBB Rating: A+
Range of APRs: 59% - 160%
Loan Sizes: $500 - $4,000
Minimum Credit Score: None
Origination Fee: $0
Payoff Period: Up to 18 months

RISE: Best for No Origination Fee

RISE has the best no-credit loans with no origination fee. The company offers small personal loans and fast funding but has high APRs.

Funding Timeline: 1 - 2 business days after approval
WalletHub Editors’ Rating: 2.3/5
BBB Rating: A+
Range of APRs: 60% - 299%
Loan Sizes: $500 - $5,000
Minimum Credit Score: Not disclosed
Origination Fee: None
Payoff Period: up to 26 months depending on the state

Learn more about the best no-credit loans.

4. Apply and Wait for Funding

You can go to the lender’s website, call customer service or go in person to fill out a loan application. You’ll need to provide the lender with some personal information like your name, address and date of birth. You’ll also need to give the lender some financial information, like your credit history, income and employment status.

Consider Alternatives to Loans for No Credit

If a loan isn’t right for you, there are plenty of alternatives worth considering.

Secured credit cards. Secured credit cards require you to place a refundable security deposit. The amount of this deposit usually becomes your credit limit, reducing the risk for the card issuer and making high approval odds and low fees possible.
Unsecured credit cards. The credit limit for an unsecured credit card is determined by the issuer based on your creditworthiness. These cards do not require a deposit, and some offer $0 fees and rewards. This is a good way to build credit instead of taking out a loan.
Lines of credit. Lines of credit, such as a home equity line of credit, allow you to borrow at will like with a credit card. However, some may require collateral.
Loan co-signer. Even if you have no credit, it’s possible to get a decent unsecured personal loan if you have a co-signer with established credit history. It’s important to note that the cosigner must repay the loan if you fail to make payments.
Family or friends. Friends or family may be willing to lend you money with more flexible terms than a traditional lender. You risk damaging your relationship if you don’t repay the loan, though.

The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 24.83% and 60 monthly payments of $26.36 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $15,817 including a $594 origination fee. APR is calculated based on 5-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).

If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.

FAQ on How to Get a Loan With No Credit(5 questions)

How to Get a Personal Loan

Upvotes

Adam McCann, Financial Writer

To get a personal loan, consumers should first check their credit score and check for pre-qualification, then compare offers based on APRs, fees, loan sizes and approval requirements.

How to Get a Personal Loan in 6 Steps

Check your credit score.
Check for pre-qualification.
Compare offers and select the one with the best terms (APR, fees, etc.).
Fill out an application, online if possible.
Wait for a decision, which usually takes a few business days.
Receive a bank transfer for the loan amount, usually within 7 business days of applying.

View entire answer

Can you get a loan without credit?

Upvotes

Grace Enfield, Content Writer

Yes, you can get a loan without credit if you apply for a secured personal loan, no credit check loan, payday loan or pawn shop loan. You can also ask a friend or family member to lend you money, or get a cosigner to help you qualify for an unsecured personal loan. Some no credit loans are a lot better and safer than others, though.

Ways to Get a Loan Without Credit

Secured personal loans

Secured personal loans require you to provide collateral to the lender, which secures the loan. The lender can keep the collateral if you cannot repay the loan. Secured personal loans often have lower interest rates than unsecured personal loans, though.

No credit check loans

No credit check loans are some of the easiest loans to get. They're easy to qualify for because they do not do a hard inquiry into your credit history.

Payday loans

Payday loans may be advertised to people without credit but are predatory. They only offer a few hundred dollars and often have fees equivalent to an APR of 400%+.

Pawn shop loans

Pawn shop loans allow you to sell an item in exchange for a percent of the item's value. However, if you don't repay the loan plus interest within a certain amount of time, the shop can sell the item.

Friends or family members

A friend or family member may be willing to give you a loan. They may also offer more flexible terms than a major lender would. However, you risk damaging your relationship if you don't repay the loan.

Cosigners

A cosigner uses their income and credit score to help you qualify for a personal loan. But if you can't repay the loan as the primary borrower, the cosigner will have to pay it.

Is it hard to get a personal loan with no credit?

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Grace Enfield, Content Writer

It can be hard to get a personal loan with no credit because most lenders have minimum credit score requirements. To get approved for a personal loan with no credit, you'll need to choose the right lender, be at least 18 years old, have enough income to afford the loan and have a bank account, among other requirements. But keep in mind that even if you meet all the requirements, approval is never guaranteed.

The easiest personal loans to get if you have no credit are available through Upstart. Personal loans through Upstart have dollar amounts of $1,000 - $50,000, a typical APR range of 5.35% - 35.99% and repayment periods of 36 , 60 months.

Easiest Personal Loans to Get with No Credit

Company	Dollar Amounts	APRs	Repayment Periods
Upstart	$1,000 - $50,000	5.35% - 35.99%, typically	36 , 60 months
Oportun	$300 - $12,000	36% maximum	6 - 46 months
NetCredit	$500 - $10,500	36% - 155% (varies by state)	6 - 60 months (varies by state)
OppLoans	$500 - $4,000	59% - 160%	Up to 18 months
RISE	$500 - $5,000	60% - 299%	up to 26 months depending on the state
Integra Credit	$500 - $3,000	99% - 300%	6 - 18 months

For more information, check out WalletHub's complete picks for the best personal loans for people with no credit. Then, you can estimate your potential rates with our free pre-qualification tool.

Upstart Disclosure: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).

How much of a loan can someone with no credit get?

Upvote

Gino Rodriguez, Writer

Someone with no credit can likely get a loan of up to a few thousand dollars, depending on factors such as their income, their existing debt and the lender. Common loan options for someone with no credit are secured personal loans, credit-builder loans, no-credit-check loans and certain unsecured personal loans.

Best Personal Loans for Someone with No Credit

Company	Loan Amounts	APRs	Repayment Terms
Upstart	$1,000 - $50,000	5.35% - 35.99%, typically	36 , 60 months
OneMain Financial	$1,500 - $20,000	18% - 35.99%	24, 36, 48 or 60 months
Oportun	$300 - $12,000	36% maximum	6 - 46 months
NetCredit	$500 - $10,500	36% - 155% (varies by state)	6 - 60 months (varies by state)
OppLoans	$500 - $4,000	59% - 160%	Up to 18 months
RISE	$500 - $5,000	60% - 299%	up to 26 months depending on the state
Integra Credit	$500 - $3,000	99% - 300%	6 - 18 months

For more information, check out WalletHub's complete picks for the best no credit loans. You can then pre-qualify with multiple lenders at once using our free pre-qualification tool.

Finally, keep in mind that interest rates and fees can be high on loans that do not require credit history, due to the risk the lender is taking in loaning out the money. If you don't need immediate access to the funds, consider building your credit before applying for a loan with better terms. Credit-builder loans and starter credit cards are designed for people with little to no credit history and can help your credit-building efforts.

Upstart Disclosures: The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 24.83% and 60 monthly payments of $26.36 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $15,817 including a $594 origination fee. APR is calculated based on 5-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

Can I get personal loan with no credit?

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