Although qualifying for a personal loan without a credit history won’t be easy, it is possible. If you’re in an emergency, you may consider using one of the following methods to increase your chances of approval.
Work With Your Bank Or Credit Union
If you have an established bank or credit union that you work with, consider asking to meet with an advisor to see if they have any options available for you. Banks and credit unions can use information from your account like your spending habits and deposit frequencies to assess your ability to qualify.
Find A Co-Signer
If you want to increase your odds of approval for a personal loan, consider using a co-signer. Having a second individual with strong credit on the loan can also help you get lower interest rates and better terms. You should only get a co-signer if you are confident in your ability to make your payments each month, otherwise you could cause damage to their credit score.Rocket LoansSM does not currently offer the option to co-sign on loans.
Ask To Borrow From Family Or Friends
If you are in an emergency situation and worried that you won’t qualify for traditional financing, consider asking your family and friends. If they are willing to help you, you can set up an agreement with them to treat this exchange like any other loan with an agreement that outlines your joint terms and conditions.
Credit Builder Loans
Some lenders offer credit builder loans. These small loans are specifically designed to help individuals who do not have any prior credit history. They can be beneficial in helping you prove your credit worthiness over time. The way they work is by applying your monthly payments to the principal and interest of the loan then reporting these payments to the credit bureaus. You will only have access to your money once the loan is paid in full, however, so it may not be the best option if you are in an emergency situation.