How To Get A Loan Without Any Credit

Having no credit these days is worse than having bad credit. And if you need money in a pinch, it can be hard to secure funds.

Maybe your car needs repairs, or you just need to get through to the next pay period, you need to be able to get a loan.

If hitting up friends and family is not an option then you have to get creative.

Luckily, there are plenty of options to get a small loan without any credit history. In this article, I will go over several ways to do this.

Use a peer to peer loan

Also referred to as P2P loans, you can get some money without needing a bank to be involved at all.

There are many sites where investors with some extra money will use it to loan out and collect the interest themselves.

If you have a secure connection to the internet, then doing this type of loan is very safe. These loans can also be done with cryptocurrency in the form of peer to peer Bitcoin trading.

Usually securing one of these types of loans is faster and more cost-effective than going a traditional route since there is no middleman like a bank involved. Shopping for the loan is also very easy since everything is done within the platform you choose to use. Whereas with bank lending you will need to compare different bank rates that can change very quickly.

Secured loan

If you have some assets you can use as collateral, chances are good that you can get a loan even with no credit history.

Unfortunately, this usually involves having cash in a special account as the collateral. If you are looking to build some credit history then this is a good way to build it but might not be the best way to go if you are short on cash.

Get a cosigner

The easiest way to get a loan without the credit is to have somebody cosign the loan for you. There needs to be a great deal of trust in a situation like this as the cosigner can damage their credit score if you fail to pay the loan.

Usually, cosigners will back you on a loan for something specific like a car or student loan. Personal loans are harder to find a cosigner for.

Join a credit union

Since credit unions are not for profit if you are a member they have different criteria for who they give loans to. If you have a good job, a history with the credit union and know somebody that works there, then you may secure a loan even with a good interest rate.

Typically, a credit union looks at your financial profile rather than a credit rating to determine if you should get a loan or not. If you are in good financial standing, then the chance.