Having little or no credit can make it tough to secure a loan. Usually, the first thing a bank will look at when reviewing your loan application is your credit history. The good news is that there are other ways you can get a loan where you don’t need credit. Unlike many other loans, payday or installment loans don’t require a credit history. Here’s what you need to know about how to get a loan with no credit.
Know Your Credit Score
Finding out your credit score and history is a good starting point to see where you stand. There are a few ways you can find your credit score, starting with your bank, a non-profit counselor, or a credit-reporting agency for a small nominal fee. If you find that you have very little to no credit, you may want to consider taking out a short-term loan. This is a good way to get a loan with no credit. If you decide to take out a short-term loan, your credit may be reviewed but your scores may not be affected.
Payday Loans vs. Installment Loans
Once you know that you may obtain a loan with no credit, you can start to choose which loan is appropriate for your situation. The two main types of short-term loans are payday loans and installment loans.
- Payday Loans are a great option for getting quick money with no credit. These loans are ideal if you need cash immediately. Payday loans may be easier to obtain and requires less time to get approved. Taking out a payday loan could be a great solution to repairing your car or paying off a medical bill. Online applications make it easy to determine if you’re eligible for short-term help. You will be notified quickly if your application is pre-approved after you submit it for review. *
- Installment Loans have a longer payment schedule and are repaid over a multi-payment schedule. In contrast to payday loans that require you to pay back the loan on your next payday, installment loans give you a greater time to pay back the loan. It is important to keep in mind that loan terms vary by state. In some states, loan terms cannot exceed 31 days, whereas in others you may have up to 180 days. Check how your state compares with its maximum loan term.
Preparing to Apply
There are a few important pieces of information that you will need when you apply for a payday or installment loan. You will need the following information for your application to get a loan with no credit:
- Loan Amount – Loans typically range from $100 to $1,000. Be aware that the maximum loan amount available is regulated by state law (to view the available loan amount in your area, review our rates and terms for each state)
- Personal Information – Includes name, date of birth, and social security number
- Employment Information – Includes employer, income, payment frequency, and next pay dates
- Bank Account Information – Includes routing number, account number, and bank name
Choosing a Short-Term Loan
There are a few things you should think about when determining which short-term loan is the right choice for you. One of the most important factors when finding out how to get a loan with no credit is to see which payment schedule makes the most sense. If you need more time to pay off the short-term loan and are able to pay a higher interest rate, then an installment loan may be best. If you are certain that you will be able to pay off the short-term loan with your next paycheck, then a payday loan may be right for you. Each state regulates the fees and interest that can be charged, so be sure to learn about rates & terms to see how the loan cost requirements apply in your state.
Getting the Funds from the Short-Term Loan
Once your information has been verified and you’ve been pre-approved for your loan, you could receive your money as soon as the next business day. Apply now for a loan with no credit.
*Short-term loans are not intended to be long-term financial solutions. Customers with credit difficulties should seek credit counseling. A single payday advance is typically for two to four weeks. However, borrowers often use these loans over a period of months, which can be expensive.