4 Loans You Can Get Approved for With No Credit History

LOS ANGELES, August 18, 2021 (Newswire.com) - Are you looking to find a loan that you can get approved for without needing an established credit history? There are many lenders that will consider other factors in addition to your credit score when deciding whether to approve you. This is a good option for people with poor credit and for those who are just starting out and don't have an established credit history. Best of all, these loans often come with an easy application process and can get you funds quickly. Here are 4 loans for no credit history borrowers.

Cash Advances

Cash advances are quick, short-term loans that get you funds to cover expenses before your next payday. With these types of loans, many lenders consider other factors in addition to your credit score when deciding whether to approve you, like your income and employment history.

With cash advances, you'll often need to provide proof of a steady paycheck and a bank routing and account number to automatically debit the funds borrowed on your next payday. These loans are quick and easy to get, but they can come with the downside of high interest rates and a quick due date. So, make sure you know the costs that come with a cash advance and that you can pay it back before applying.

Title Loans

Title loans are secured loans that let the borrower use their vehicle title as collateral. To qualify for a title loan, you must fully own your vehicle, so you won't be able to use a car you're still making payments on.

Title loans allow you to keep driving your vehicle as you make loan payments. The lender will hold onto your title and will give it back to you once you repay the loan in full. Keep in mind that if you don't pay back a title loan, the lender will likely repossess your car.

No Credit Check Installment Loans

Some lenders offer installment loans that you don't need good credit to qualify for. Installment loans are short-term loans that give you a lump sum of money you'll pay back over a set period of time. Installment loans typically offer fixed monthly payments and fixed interest rates, so you'll know how much you have to pay each month.

Installment loans can be a good option if you don't have an established credit history. Better yet, getting a loan can be a good step to start building credit if the lender you select reports to major credit bureaus, you make on-time payments, and you pay off the loan in full.

Credit Builder Loans

Credit builder loans work differently than traditional loans because they're specifically used to increase your credit score, so the borrower pays the lender in monthly installments each month. The lender then puts this money into a restricted savings account that you can't withdraw from until you've paid off the loan. Loan amounts are usually small, between $300 and $1000, and they can be paid off in installments.

Payments on credit builder loans are reported to the credit bureaus, which is how you can build credit. They can also help you to practice good savings habits, since they essentially work like a savings account. Think of it as depositing monthly to reach a certain goal. 

The Bottom Line

These are just a few loan options available if you don't have an established credit history. If you want to go a different route, you can consider getting a co-signer to apply for a traditional loan or borrowing from friends and family. No matter how you decide to borrow money, just make sure you understand the terms and can pay it back on time!

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.