How To Get A Personal Loan With No Credit History And No Cosigner

When people encounter bad credit scores, they usually take a personal loan to fix the problem easily and simply, but what if you don’t have any credit history neither a cosigner? 

Personal loans are the best choice for people who want to use it in any way they like (contrary to loans designed for specific reasons such as mortgage or auto loans). As they have low-interest rates, long repayment periods, and better terms overall, borrowers tend to use a personal loan, but then they might face difficult issues such as the lack of credit history or a cosigner. 

With being said, in this article, we’re going to cover the most effective ways to fix this problem, but not before clarifying what a cosigner and credit history means for those uninformed.

What credit history and cosigner are?

Simply put, the credit history of a person is his/her record of total debts, number of credit lines, cards, timeliness of payment and how he managed his credit previously. Many lenders require a credit history check to decide whether to give or not a new line of credit to the customer, which is why not having a record can be such a complicated problem, especially in our case. 

A cosigner, on the other hand, is a person who signs and agrees to pay someone else’s debt in case they fail to. Cosigners have to have an overall good credit score and a rich credit history in order for the loan application to be approved. As students or immigrants can’t take a loan themselves, they are obliged to have a cosigner, which makes everything more complicated. 

Cosigners are hard to get and it’s just better to just find another way to get approved.

The best ways to get a personal loan without a credit history or a cosigner.

#1 Online lenders

Contrary to banks that decide your application verdict only by considering your credit history, there are countless of online lenders focused on students and immigrants who hassle with getting a personal loan.

Although it varies, the most common requirements to get approved are to admit your income, employment rank, and generally to prove you can afford to repay the loan in time.

Besides that, they also offer emulous interest rates and better terms and conditions for the customer. As they are competing with banks and other online lenders, it’s in their interest to attract borrowers to their side, therefore countless online lenders offer better customer policy than banks.

#2 No credit check loans

Similar to online lenders, there are other lending services designed to fulfill the needs of people who lack a credit history. As they understand the trap these people are caught into, these lenders focus on that block of people the most.

With that being said, these lending companies don’t require any credit check, which means they won’t know if you have credit history or not, making it easier for you to get a loan. 

Again, you only have to show your income source and to prove you have a bank account.

However, be warned that some of these lenders could impose annual fees and loan renewal fees if you don’t pay the loan on time. Of course, all of this information will be brought into your knowledge in the agreement conditions, but we advise you to search for a company that doesn’t charge any fees.

#3 Secured loans

Secured personal loans are the best replacement for a cosigner as the pledge mechanism is pretty similar. 

Secured loans require you to grant or leave collateral, for example, your car, bike or any other approved valuable object. Whereas a cosigner supports you getting the loan by taking a part of the responsibility, the collateral is an item you leave to the bank instead of exposing your credit experience. 

Now that you know the best ways to get a personal loan without a cosigner or credit history, feel free to try any of this method and get your loan today.

How to get a loan with bad credit and no guarantor

How to get a loan with bad credit and no guarantor

Even if you have no guarantor and your credit score is unimaginably low, you can still get a loan. It is possible to obtain a loan with a bad credit score and no guarantor. These kinds of bad credit or no guarantor loans are personal loans specifically designed for people who need emergency funds but have a low credit rating.

Bad credit loan 

What you need is a bad credit loan when you need some quick cash, but your credit score looks undesirable and unlikely to be accepted by most banks. However, bad credit or no guarantor loans do not work like magic. They have requirements too. The only difference is that their requirements are more lenient than most other types of loans.

Just like the personal loans, when you get a bad credit loan, you are expected to pay back in fixed monthly instalments or some cases, a one-time lump sum.

Where to get a bad credit loan

Since the big banks with rigid plans and requirements will hardly give you a loan on your low credit and no guarantor status, where then do you get a bad credit loan? The answer is simple – Lenders! You can get bad credit loans from banks under special conditions or other types of lenders like credit unions.

Here are some of the affordable avenues to obtain a loan with a low credit score and no guarantor.

•Credit unions 

Credit unions come in handy when you are in a fix and need money as an emergency. Credit unions will hardly look at your credit score, and the maximum allowable interest rate is 18%.

•Peer to Peer (P2P) 

Several online platforms are offering P2P loans with attractive amounts and tenures. Though your credit score may still be checked, there are a lot of individual lenders, so you have a higher chance of finding lenient ones who don’t mind borrowers with bad credit

•Friends and family 

Typically, getting a loan from a friend or relative will necessarily require collateral, and a relative will rarely ask to see your credit score. Still, they may request some interest and assurance. Although these are less likely to be as rigid as banks or unknown lenders.

•Online or App-based lending 

You can also explore the digital lending option, usually known as online personal loans, which allows you to obtain loans online based on your salary. Several online platforms connect you to a lender in a matter of minutes once you have applied. Sometimes, these lenders are regarded as virtual banks without any physical address.

However, if you would instead get a loan from a bank with your low credit score, you can try these options

•Secured credit cards/ Collateral 

This option allows you to obtain loans from banks using collateral as a pledge. Such collateral could be gold, property, or a secure credit card. Secured credit loans may not assist you in getting a vehicle or home loans, but you can get any other form of loans with no guarantor or a high credit score.

•Unsecured loans 

Unsecured loans attract very high-interest rates and may not be easily accessible. Typically, what you need to get an unsecured credit is proof of good income from a respectable company. You may get a home loan through unsecured credit, but this might be offered at a reduced amount. Unsecured loans do not require collateral and may even help you build your credit score.