How to Find and Secure No Credit Loans
There's a sense of hopelessness when you don't have credit. You have to pay extra for certain services such as a cell phone contract and you're not qualified to receive certain benefits.
Having no credit can especially interfere if you have to take out a loan. Everyone gets caught in a situation where they have a random, major expense. Or, they need something such as money to pay tuition.
The primary option is to get a credit card. However, this comes at a limit for those with no credit. So your only option is to take out a loan.
Fortunately, there are ways to take out a loan with no credit. If you're caught in a pickle, use these tips to find no credit loans.
Find Loans with Soft Inquiries
The sad truth is, most loans require hard inquiries from all three areas of the credit bureau.
When you receive these loans, you have to pay them back. When you don't pay them back and interest accumulates, it will negatively impact your credit score.
If you have no credit, you want to build it in a positive manner. Not in a negative one that will result in a low score. This is why most loans are only offered to those with past credit history.
But you can always take no credit loans with soft inquiries from the credit bureau.
These loans look at more than just your credit score, which includes.
- Your Employment Status
- Your Bank Account
- Past 90 Days of Financial History
- A Soft Credit Check
These loans don't rely on your credit score to judge your financial health, but they do expect you to pay off your loan.
In addition to the other factors contributing to your financial health, they conduct a soft credit check.
This doesn't look at your credit score and history, but rather your creditworthiness. Soft credit checks don't negatively impact your credit score, making it a perfect option for those with no credit.
An Installment Loan
If you need money fast but have no credit, settle for an installment no credit loans. These loans give you the amount of money you need, but you pay it off in installments of your choice.
You schedule these installment dates based on your needs, and you pay off your loan by these due dates.
Plenty of lenders require a hard credit check with installment loans. But other reputable lenders only require a bank account.
Some installment loans offer benefits. These may include cash bonuses.
Taking out installment loans helps to establish credit. Just make sure there's a low-interest rate and you pay your installments on time and in full.
Settle for a Payday Loan
Are you confident you'll pay off your loan in one payment? Do you need money in a short amount of time, but can pay it off quickly? Look at payday no credit loans.
Payday loans are a small amount of money (usually less than a grand) you receive immediately. They're called 'payday loans' because they're dispersed regardless of your pay.
Since these loans are available immediately, they don't require hard credit checks (however, some lenders do require hard credit checks).
If you settle for a lender who conducts a soft credit check, or even no check at all, they will still ask for certain information.
This includes your social security number, your pay and job information (your employment history, if you receive any benefits, etc.) and your bank account information.
Find an Emergency Loan Lender
Chances are, you're taking out a loan because of a last minute emergency.
Because of this, you don't have time for the hassle of dealing with lenders who turn you down since you don't have credit.
Emergency loan lenders understand you need money in a jiffy. Therefore, you can inquire about them and usually receive your money that day.
These lenders usually offer loans to those with all credit levels, so these loans are perfect for those who don't have credit. Some lenders even have emergency loans specifically for those with no credit.
Only Take Out the Amount You'll Receive on Your Next Paycheck
This is good advice, even if you have great credit: only take out the amount you know you can pay off. The oldest advice states only take out the amount you're expecting on your next paycheck.
If you take more than what you think you can pay, you're facing a serious risk. Beyond going further in debt, they will probably reject your application.
Since lenders check your income, only request the amount you'll receive on your next paycheck. You usually request a loan if it's an immediate expense and you're not receiving a paycheck for another couple of weeks.
If a lender sees you're only requesting an amount that's affordable under your income, you'll have a better chance of securing that loan.
Take a Personal Loan
If you have no credit score, you may qualify for a personal loan. These loans are larger than payday and emergency loans -- you usually receive these loans for $2,000 or more.
While this seems like a high number, it's not impossible to find a lender who will give you a personal loan with no credit.
Let's say, for example, you're using the loan for school. Depending on the school and field of study, the amount you receive for a personal loan is enough for a semester's worth of classes and books.
Explain this to the lender. State you're interested in a personal loan over a student loan or a credit card. Personal loans are lower interest and are easier to pay off, compared to other options.
The lender will understand and may approve you for a smaller loan with a low-interest rate. You're using the loan for a legitimate reason and there's leverage explaining why you haven't had a chance to build credit.
They may run a soft credit inquiry at the minimum. But not all lenders run a hard credit inquiry.
Are You Knowledgeable about No Credit Loans?
It's difficult when you need money and you haven't built credit. However, there are lenders who can support you. Whether you want to just use a small loan or want to use a loan and build credit, there are several types of loans for everyone.
If you have bad or no credit and need a loan, contact us today.