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.
Oportun: Best Overall
The best personal loans for people with no credit are from Oportun because the company offers small minimum loan amounts, a maximum APR of 0% and fast funding. Oportun does a hard pull of your credit when you apply. But the company does accept people with no or limited credit.
- Approval/Funding Timeline: 1 - 2 business days
- WalletHub’s Editors’ Rating: 2.4/5
- BBB Rating: A+
- Range of APRs: N/A
- Loan Sizes: $300 - $10,000
- 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.
- Approval/Funding Timeline: 1 - 3 business days
- WalletHub’s 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+ with payoff periods from 6 to 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.
- Approval/Funding Timeline: 1 -2 business days
- WalletHub’s Editors’ Rating: 1.9/5
- BBB Rating: A+
- Range of APRs: N/A
- 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.
- Approval/Funding Timeline: 1 – 3 business days
- WalletHub’s 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.
- Approval/Funding Timeline: 1 - 2 business days
- WalletHub’s 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.