Getting loans without credit history might be challenging. There are only a few lenders that will approve in cases where the applicants have a poor credit card history, let alone nothing establishes. However, if you dig in, you might be able to get a personal loans with some reputable banks or other agencies. The question is, will you be able to pay then? More often than not, those who offer loans without credit history will mark up the rates as a compensation. However, here are some tips and tricks of how to obtain loans without credit history but still provide reasonable rates every month!
- Cover Up the credit History with Your Own Information
Once the technology is developed this well, you will find many online traders or online lenders. Many of them are trustworthy enough to give it a shot. However, when you do not have a complete or good credit history, give your lender the information regarding to your current income as well as your monthly expenses. It will be better if you enclose your financial condition and future income potential. You can also report your rent payments. If you have a good record, the lenders will be able to determine whether or not you fit the qualifications to get some loans without credit history.
Getting your first credit card might be beneficial for you, as loans with bigger lumps will require the index of your credit points and the history. However, if you are not careful enough and make bad decisions with it, you might create a poor performance, which will only cause doubts to your lenders. Hence, it will be better if you delay your first credit card until you are fully ready and get the loans in emergency cases through this way.
- Sign Up as An Authorized User for an Account
One of the safest ways to obtain some loans without credit history is by registering yourself as an authorized user on your sister’s credit account, for example. When you become an authorized user, you will also receive a credit point for every usage and every payment the card holder makes. However, you do not have the obligation to pay for the monthly bills. Of course you will not have a full credit point, but it can work to build your own credit point slowly.
- Assign Yourself from a Credit Union
If you want to get some loans without credit history, you can try to earn financing through credit unions. What is good about a credit union is that most loans from them have lower rates. In additions, because it is nonprofit financial center owned by their costumer, they do not go through complicated background checking. In other words, the chance to obtain some loans without credit history is higher since it is easier. You only have to register yourself as a member of the credit union.
Commonly, the process will only involve some documentations by taking the forms online. Later on, the staffs will review the forms and determine if you can be responsible enough to take the loans.
Read Also, How to Get A Student Loan.