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Home > Finance > How to get a loan with no credit

How to get a loan with no credit

Published by Gbaf News

Posted on January 11, 2018

3 min read

Last updated: January 21, 2026

Illustration of loan options for individuals without credit scores - Global Banking & Finance Review — This image illustrates various loan options available for individuals with no credit history, highlighting alternative lending solutions. It complements the article on how to secure loans without a credit score.

Credit is everything in the world of finance. One needs to have good credit, as calculated through a credit rating or credit score. Having good credit is essential to get a loan. However, there are many people who do not have good credit for various reasons. What do they have to do if they need a loan? Is it possible to get a loan with no credit? Read on to know the answers to these questions.

Credit score

The credit of an individual is decided based on past history. This is decided based on how a person has cleared loans taken earlier. Repayment of loans on time, timely payment of credit card bills all contribute to a good credit score. The FICO credit score is a popular score which is calculated out of 850 points. A score of 720-850 indicates great credit. 680-719 indicates good credit, 630-679 is fair credit, 550-629 is subprime credit and 300-549 is indicative of poor credit.

A score of less than 630 indicates a poor score and such people would find it difficult to get a loan. Lenders prefer to loan to those with a high credit score as they can be assured of getting back the money they loaned back easily. So, what do those with a poor credit score do?

Take the help of friends and relatives

A relative or friend can help you get a loan if you have no credit. If they have good credit and co-sign the loan, it would get approved. However, this is a risk for the co-signer, who has to repay the loan, if you fail to do it.

Get an unsecured personal loan from known people

You can get a personal loan for a friend or a known person. This would be an unsecured loan, given without any collateral. This presents a big risk for the lender as he has no option if you default. Also, personal relationships may get affected if a personal loan is taken from known people.

Unsecured loans from lenders

There are many financial agencies who would lend money to those with no credit. But they would charge very highinterest rates. These are also referred to as predatory loans. The interest rate may be 300% per year, which is exorbitant. Since the loan is unsecured, the duration of the loan also would be very short. Such loans are very difficult to repay.

Secured loan

A secured loan can be taken against collateral. If you have a home or an asset of value, you can pledge the same and take a loan. This is a good way of getting a loan if you have no credit. Since you have pledged collateral, you would get a loan on good terms.

Private and online loans

There are private agencies and online lenders who would give a loan with no credit and no collateral. They would use alternate means to check credit like verifying details like employment history, salary records, tax payment records and then sanction the loan if they feel convinced that you have the financial strength to repay the loan.

Those who have poor credit can get a loan from friends or by pledging collateral. There are many private lenders who would give loans by verifying your credit through alternate means.