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.