Getting approved for a loan without a credit history can be tricky, especially since lenders want to see that you’ve borrowed money before and successfully paid it back.
But, having no credit history or an inactive credit report doesn’t mean that you’ve reached a dead-end – there are ways to qualify for a loan.
Here are three options to consider:
1. Show Proof
If you have no credit history to fall back on, you can gather documents, like your bank statements, employment history, past residences and utility receipts, to show lenders that you are financially responsible. Depending on what information you provide, this may help you qualify for a loan.
2. Find a Co-Signer
If you have a relative or close friend willing to be your co-signer, lenders may be more apt to approve you. Keep in mind that your loan will reflect your co-signer's credit rating and that they will be responsible for any debt you’re unable to pay.
3. Start Building Your Credit History
It’s never too late to start building your credit history. Start small by signing up for a low limit credit card or see about qualifying for a car loan. As you pay your balance on time each month, your credit rating will go up, which will help you establish a history.
Have no credit and need help securing an auto loan?
At Source Save Money, we’ve assisted hundreds of customers from across the Northwest to establish healthy credit scores by getting them approved for auto loans. We can do the same for you!
Click here to complete our quick and secure online application. It takes just minutes to fill out and one of our Finance Specialists will be in touch within 24 hours.
A lack of credit can hurt your chances for obtaining an auto loan, but we can help!
Everyone is different, and it isn’t unthinkable to lack a distinguished credit history. Maybe you are young and only just starting out in the world. Perhaps you have had your share of experience and simply choose to stay away from leaning on cards for purchases. Regardless, it is perfectly normal to not have a credit score.
We understand how frustrating it can be to try to develop a score once you realize you want or need it. Often, no one is willing to give you credit when you have no credit history, but naturally, you have no credit history because no one will grant you credit. Seems illogical, but that is the way it is sometimes.
But don’t worry. Even those with no credit can still qualify for a loan through Source Save Money. The fastest and easiest way to rebuild your credit is to purchase a vehicle and make steady payments. We will work with you to make your dreams a wonderful reality.