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Credello: How to Get a Personal Loan if You Don’t Have a Credit History

There are many reasons why you might want to get a personal loan. For instance, an emergency could arise that you may not have the ready cash to cover.

There are many reasons why you might want to get a personal loan. For instance, an emergency could arise that you may not have the ready cash to cover. You could also want a personal loan to help fund a home renovation, wedding, funeral, or another event.


However, getting a personal loan if you don’t have a great or any credit history can be challenging. There are ways you can do it, though, and we’ll talk about them right now.


Why You Might Not Have a Credit History


Personal loans for bad credit are indeed possible, but before we talk about how you might get one, let’s discuss some reasons why you may not have very much credit history or even none whatsoever. 


One reason might be that you’ve avoided getting credit cards. Some people do this if they think they might be tempted to use them irresponsibly. Credit cards are one of the proven ways to build your credit history, so increasing your score without them can be a little tricky. 


It’s also possible that you’re relatively young. Perhaps you’re a recent college graduate, so you haven’t had much time to build up your credit score through conventional means. 




If your situation is one of the ones we mentioned, or there is some other reason why you have little credit history, finding a co-applicant for a personal loan makes sense. A co-applicant can be a parent, relative, friend, or mentor who has a solid credit score and is making a consistent income.


If a lending institution sees that you’re applying for a loan along with this other individual with an established track record of paying their debts on time, they’re more likely to do business with you. The trick is finding someone who fits this profile and who is willing to apply for a loan with you.


Higher Interest Rates


When looking for a personal loan, it makes sense to shop around. If you have no credit history or not much of one, many lenders won’t extend you a loan without a co-applicant. However, you may be able to find a lender that is willing to offer you a loan without someone applying with you.


These lending entities might take a risk on you if you’re willing to accept a loan that comes with a higher interest rate. The national average interest rate for personal loans is between 9 and 10 percent. That’s what you might expect if you have a solid credit score and a history of paying off your debts. 


If you have very little or no credit history, you might find an entity that’s willing to lend to you, but the interest rate may be higher than that. If you want the loan badly enough and can’t find a co-applicant, accepting a personal loan at a higher interest rate is probably your best bet.


Getting a Personal Loan with No Credit History is Possible


Getting a personal loan with little or no credit history is possible. You can often find one with a reasonable interest rate if you can recruit someone with a solid credit history and a well-paying job to be your co-applicant. 


If you can’t find such a person, you might still be able to find a loan, but without any credit history, you’re probably looking at a higher interest rate. This is because the lending entity will see you as more of a risk.


If you want a loan badly enough, though, you can usually make that happen, even with little or no credit history. Just try not to take on a financial obligation you don’t think you can pay back. 

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