Best No-Credit History Loans – Help Right in Time
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Your credit score is a significant number, and it plays a crucial role in how you get funding or whether you get funding at all. There could be several reasons why you may not have a credit score. Maybe you just started your financial journey, or maybe you never needed to borrow in the past. You might have preferred to use a debit card and never applied for a credit card. Whatever the reason, if you haven’t had a chance to build a credit profile, you can still get a loan.
Having no credit history doesn’t mean you are irresponsible; you are still very creditworthy and can qualify for a loan. Having no credit is so much better than having bad credit. However, you must keep in mind that a no-credit history loan will have a high interest rate, and loan terms may not be as flexible as you expect. If you have no credit and are looking for no credit check loans, here are all the options available for you.
In this article
Overview of the best no-credit history loans
Platform | Best for |
Upstart | Larger loans (up to $50,000) |
Oportun | Smaller loans (starts at $300) |
OneMain Financial | Multiple options for repayment terms |
OppLoans | Short-term loans |
LendingPoint | Flexible options |
MoneyLion | Ideal for credit building |
Best no-credit history loans
Upstart
Upstart is an ideal option for those who need a higher loan amount. It offers a loan ranging from $1,000 to $50,000. It usually approves applicants with fair credit but also accepts applications from those without a credit history. This is why it is a good choice if you need sufficient money but do not have a credit history. You must keep in mind that if you are approved for a loan with no credit, you might have to pay a higher interest rate.
There is no penalty for paying off the balance early. However, there is an origination fee of up to 12% of the amount you borrow, and a late fee of $15 or 5% of the outstanding balance, whichever is greater. The interest rate ranges from 7.8% to 35.99% and the loan tenure is between 36 and 60 months. 99% of the funds are sent on the following business day. On the website, you will see loans marked for any occasion, for medical debt, moving, debt consolidation, home improvement, or more.
Oportun
Oportun offers a personal loan to those with no credit history. You can get a personal loan between $300 to $10,000 and an APR of less than 35.99%. The exact rate can be determined based on location and the loan amount. You can use the loans for home improvement, car repairs, vacations, rental deposits, or other unexpected expenses. You can add a co-signer to the application and even apply for a secured loan.
It is ideal for those looking for a small loan. It charges an origination fee between 0% to 10% and a late fee ranging between $5 to $15. Oportun is not available in all states. Hence, check if it is available in the state you reside in before you apply. It offers a small discount to returning borrowers, depending on the number of personal loans you’ve had and your payment history.
The criteria for qualifying for the loan are simple. You should be at least 18 years old, have a valid ID, provide proof of address and income, and have a monthly income of at least $500. Your income could be from employment, retirement, alimony, child support, or Social Security.
Use AmONE to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- With personal loan interest rates rising, now could be a great time to find a personal loan. Through our partner AmONE, you could get matched to a lender who could offer as much as a $50k loan with rates as low as 5.99% APR.
- Approval and loan terms vary based on applicant qualifications. Not all applicants will qualify for the full amount or lowest available rates. It takes minutes to see your results. And don't worry- filling out the form won't hurt your credit score and is free, so why not give it a try?
OneMain Financial
OneMain Financial is a solid option for those with no credit history and looking for a loan. The lender has been around for several years and is a well-renowned name in the industry. However, the only catch is the higher interest rates; they are even higher than credit card interest rates. It allows a co-applicant, but its loans have a higher APR than other lenders. It also has a secured loan option, and its APR ranges between 18.00% to 35.99%, with a loan amount from $1,500 to $20,000. You can use the loan for any purpose, and it has a tenure ranging from 2 years to 5 years. OneMain Financial charges an origination fee ranging from 1% to 10% and a late fee of up to $30.
If you are approved for the loan, you must head to a branch and complete the paperwork. You can choose to apply for a secured or unsecured loan. But be careful with a secured loan since you could lose your asset if you do not repay the loan in time.
OppLoans
Opploans offers funding to borrowers with poor credit or no credit. The company does not conduct a hard credit check as a part of its loan application process. You do not need a minimum credit score to qualify since the lender bases its decisions on the alternate financial data obtained through Experian. You can receive the funds as early as the next business day, but the APR can be sky-high. It ranges between 59% and 179%, and the maximum loan amount is $4,000. The standard loan amount also varies by state. There are only two repayment terms offered-9 months and 18 months. OppLoans reports the payment activity to three major credit bureaus, and if you make the payment on time, you can start building credit.
The eligibility requirement is basic. You need to be at least 18 or older and have a bank account to be able to apply for the loan. Your regular source of income should come from benefits or employment. OppLoans is available across most states, but if you live in New York, South Dakota, or New Hampshire, you cannot apply for the loan since the company doesn’t operate there.
LendingPoint
Borrowers with no credit history often have limited borrowing amount options and repayment terms, but with LendingPoint, this is not the case. The online lender offers unsecured personal loans and business financing options. You can borrow anything between $1,000 - $36,500; the repayment tenure could be as high as 6 years or less. But with a longer term, you pay a higher interest over time. Its APR ranges from 7.99% to 35.99%, and there is an origination fee of up to 10%. One thing to keep in mind about LendingPoint is that it does not allow joint applications or co-signers and has minimal requirements for income. You can receive the funds the next day after the approval.
To apply for a loan, you must live in a state where the lender is licensed. The company does not offer loans to Nevada and West Virginia residents. You must have a minimum annual income of $35,000 and be at least 18 years old. You will have to provide your Social Security number and bank account number. Borrowers can use the loan for emergencies, weddings, debt consolidation, medical expenses, travel, taxes, or other personal expenditures.
MoneyLion
You can get a credit builder loan with MoneyLion, but you will have to pay a $19.99 monthly membership fee. It offers one plan and a $1,000 credit builder loan you can pay off in a year. Its APR ranges from 5.99% to 29.99%. The APR will be determined based on the information you provide in your application. With this fee, you also get a deposit account, an investment account, and credit monitoring services from TransUnion. If you are looking for a way to build credit and need a little cash immediately, MoneyLion could be a good option. However, you will not be able to borrow a high amount.
Use AmONE to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- With personal loan interest rates rising, now could be a great time to find a personal loan. Through our partner AmONE, you could get matched to a lender who could offer as much as a $50k loan with rates as low as 5.99% APR.
- Approval and loan terms vary based on applicant qualifications. Not all applicants will qualify for the full amount or lowest available rates. It takes minutes to see your results. And don't worry- filling out the form won't hurt your credit score and is free, so why not give it a try?
How to get a loan with no credit history
Here are a few options if you are looking for different ways to get a personal loan with no credit history.
Look for lenders that offer no credit history loans
We’ve listed several online lenders happy to offer a no-credit history loan. While some need alternative data to access your risk, others will approve the loan without asking for additional information. The only drawback is the higher interest rate. Look for a non-traditional lender who offers funds at a low-interest rate. A payday loan is not the only option you have. Some financial institutions are happy to lend money to borrowers with no credit history.
Apply to a credit union
When needing emergency cash, you can consider applying to a credit union if you are a member. Credit unions have Payday Alternative Loans, small, short-term loans that offer an ideal alternative to high-cost payday loans. The loans range from $200 to $1,000 and have an interest rate lower than that an online lender offers. However, you will only qualify for the loan if you have been a credit union member for at least one month.
Apply for a secured loan
An unsecured loan does not need any collateral, which is why lenders have a high credit score requirement. But, if you have something you can put down as collateral, you can get a loan with no credit. If you need cash, you can use your home, bank accounts, stocks, vehicles, or insurance policies as collateral for the loan. Secured loans also come with better interest rates and repayment terms. But if you miss a payment, your collateral could be at risk.
Borrow from the 401(k)
When you have no credit but need a large amount of cash, borrowing from your 401(k) could be a good alternative. You will not have to deal with a lender, so there is no credit score requirement, and the interest you pay will go right into the Lastly, if you are with the same employer, you have up to 5 years to repay the loan. If you do not replace the withdrawn amount in time, you could be penalized.
Add a cosigner to the application
You can apply for emergency loans or bad credit loans if you urgently need money. Ask a friend or family member to act as a cosigner and help you get a loan. This option may not work for everyone, but it could be helpful if you need emergency funds. The cosigner’s credit could be damaged if the payments are missed.
Apply for a credit builder loan
A credit builder loan is slightly different from a personal loan. In a personal loan, you will receive the money you are borrowing and have to pay it back over time. However, with a credit builder loan, you will make fixed payments to the lender, and you will then get access to the money at the end of the loan term. It is ideal for borrowers with low or no credit scores.
Best no-credit history loans summary
Lender | Minimum credit score | APR | Loan amount | Origination fee |
Upstart | 300 | 7.8-35.99% | $1k-$50k | Up to 12% |
Oportun | None | Up to 35.99% | $300-$10k | Up to 10% |
OneMain Financial | None | 18-35.99% | $1.5k-$20k | Up to 10% |
Opploans | None | 59%-179% | $500-4K | None |
LendingPoint | 580 | 7.99-35.99% | $1k-$36.5k | 0-10% |
MoneyLion | None | 5.99% to 29.99% | $1K | None |
FAQs
How can I start building credit?
The best way to build credit is to borrow money and make on-time payments. Do not borrow the amount you do not need, and do not apply for a lot of credit simultaneously. Start with a secured credit card and continue to pay on time. Keep monitoring your credit and check the credit reports from time to time. Once you have built good credit, you will be able to enjoy lower interest rates on the loan.
Which type of loan is the easiest to get?
You can easily get approved for a car title loan, payday loan, or personal loan with no credit check. However, when you apply for these loans with a non-traditional lender, you could end up paying a high-interest rate and the overall cost of borrowing could soar. Payday lenders do not check your creditworthiness but will offer a loan at a very high-interest rate.
How long does it take to build a credit history?
If you want to wait and build a credit history before applying for a personal loan, you need to make timely payments once you borrow. It usually takes about six months to build a good credit score. You can also build credit through a line of credit or installment loans. Depending on how often you borrow, it could take a few years to reach an excellent credit score.
Use AmONE to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- With personal loan interest rates rising, now could be a great time to find a personal loan. Through our partner AmONE, you could get matched to a lender who could offer as much as a $50k loan with rates as low as 5.99% APR.
- Approval and loan terms vary based on applicant qualifications. Not all applicants will qualify for the full amount or lowest available rates. It takes minutes to see your results. And don't worry- filling out the form won't hurt your credit score and is free, so why not give it a try?
The bottom line
It can be hard to get a personal loan if you do not have a credit history. However, many lenders are happy to work with borrowers with no credit or poor credit history. Whether you are looking for funds for debt consolidation, or medical expenses, you can easily find a lender willing to help you with the loan. The only thing to remember is that you will have to pay a high-interest rate on the amount you borrow. Even if you do qualify with a lender, compare your options and then make an application.
Compare different lenders and read the fine print to understand the loan rates and ensure you make the right choice. This is important because each lender and loan will have a different interest rate and repayment term. You will have to pay a higher interest rate, but you will also be able to improve your credit history if you make timely payments.
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Editor
Vandita Jadeja is a financial writer and editor at Joywallet. She loves to read and write about money and brings a decade of experience from the financial industry.
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