No Credit History? Here's How You Can Still Get a Personal Loan

Getting a personal loan without credit history or a co-signer sounds impossible, but it’s not. The real challenge is that traditional lenders view you as high-risk since they can’t verify your repayment track record. However, several viable paths exist, though each comes with tradeoffs worth understanding.

The Four Routes to Getting a Loan With No Credit

Secured Loans: Put Up Collateral to Lower Lender Risk

If you own assets—savings, a car, or other valuables—a secured loan might be your quickest win. Here’s the math: lenders offer better terms because they have something to seize if you default. The downside? You’re betting your assets. It’s a riskier move as a borrower, but banks, credit unions, and online platforms all offer secured personal loans, giving you flexibility on where to apply.

Alternative Online Lenders: Skip the Credit Score Check

Not all online lenders are created equal. Some have ditched the traditional credit-score obsession and instead evaluate your income, employment history, and bank transactions. Platforms like Oportun review your actual financial behavior, while Upstart works with borrowers who haven’t built a credit file yet. This shift in lending criteria means getting a personal loan with no credit is increasingly achievable through the right lender.

Credit Unions: Community-Based Solutions

Credit unions often have more flexibility than banks. Many offer payday alternative loans (PALs) with manageable terms—you can borrow up to $2,000 with repayment periods stretching to a year. The catch? You need to meet membership requirements: living in the right area, working for an eligible employer, or belonging to a qualifying group.

Payday Loans: The High-Risk Trap

Yes, payday lenders will approve almost anyone with no credit history. But before you consider this route, understand the cost: APRs can reach 400%. You’re also locked into a tight repayment schedule (usually your next paycheck), and missing it spirals fast. Many borrowers end up trapped in a debt cycle that’s hard to escape, plus you risk damaging your credit further.

What You Need to Know Before Borrowing

The golden rule: avoid any loan with an interest rate above 36%. If you spot offers claiming “no credit check,” research the lender thoroughly—scams targeting people in your situation are common. Use a personal loan calculator to map out your actual payment obligations before committing.

Getting a personal loan with no credit requires choosing between risk levels: secured loans put your assets on the line, payday loans drain your wallet with fees, while alternative online lenders and credit unions offer middle-ground options. Compare multiple offers and pick the path that doesn’t compromise your financial stability.