Loans for beginners: getting a first-time loan with no credit

There's a lot to consider when you're shopping for a first-time loan – especially when you're looking for a loan with no credit.

Unexpected bills, home repairs, paying down debt, major purchases – everyone needs a little extra cash sometimes. Those unexpected expenses don't care whether you have great credit, low credit, or no credit.

So, what are your options for getting a first-time personal loan with no credit?  

Shopping for a loan with no credit can be complicated

When you boil it down, credit is a rating based on how well someone manages their finances and debt. There are several factors that go into your credit score, and the resulting number helps lenders determine how likely you are to make on-time payments and repay your debts in the future.  

Having no credit can complicate things. It keeps creditors from the ability to evaluate your credit risk. Even simple things – like paying with cash instead of using a credit card – can affect future lending options. If it doesn’t help you build a credit rating or give you a chance to show that you can use credit responsibly, it doesn't help you build a credit rating.  

You might have no credit if: 

• You’ve never applied for a credit card. If you’ve never had a credit card or taken out a loan, you’re missing out on an opportunity to build a credit history.     
• Your account doesn’t show recent activity. Lenders like to see that borrowers are using their credit regularly and responsibly. This demonstrates that a borrower is likely to repay their personal debts according to the terms of their loan.  
• Your accounts are too new to be scored. It can take several months for a new account to be integrated into your credit score. If a lender pulls your credit report, it may not reflect your full financial picture if you’ve recently opened new credit accounts.  

You may still be able to get a loan with no credit  

While having no credit score can make borrowing more challenging, it's still possible. Some lenders can make accommodations for all credit types. World Finance is one of those lenders. We help people with low credit scores or no credit score access the money they need while establishing a credit history to empower them as a borrower in the future. When you need a loan with no credit (or low credit), lenders like World can help.

We consider more than just your credit score when determining the best loan option for you. You can breathe easy knowing that we’re working to find a loan that fits your budget and sets you up for success. We also report to three credit bureaus, which means your World loan does double duty – building and boosting your credit over time. By establishing healthy financial habits, like keeping your usage ratio low and always making on-time payments, you’ll not only begin to establish a credit score, but also see your score on the rise.