Best loans for no credit history of August 2024

Many loans cater to borrowers with no credit history, but some are much better than others. Generally speaking, lenders that don’t check your credit offer loans with high fees, low amounts, and short repayment terms — think payday loans and title loans. These are the loans you want to avoid.

Instead, consider personal loans, credit-builder loans, payday alternative loans (PALs), certain cash advance apps, and “buy now, pay later” services. Each can be an affordable borrowing option if you have no credit history.

The best loan with no credit history is arguably a personal loan — if you can get one. This is because annual percentage rates (APRs) typically top out around 36%, you generally have years to pay the money back, and monthly payments are fixed (meaning they won’t change).  

Plus, personal loan amounts are available in the thousands-of-dollars range, unlike loans that don’t require a credit check, and a history of consistent, on-time payments can help you build credit.

Tip

A loan’s APR is a quick measure of how much it costs, and accounts for upfront fees and interest charged. The higher the APR, the more expensive the loan.

But most lenders have a minimum credit score requirement and prefer to see a positive payment history on your credit report, which can make it difficult to qualify. 

Applying with a cosigner with good credit can help. Alternatively, you can apply with a lender that doesn’t have a minimum credit score requirement (but you may need to apply directly on the lender’s website).

No-credit-history lenders and loans with cosigners

Good to know

A cosigner is someone who promises to repay a loan if you can’t. They should have good to excellent credit, a decent income, and a low debt-to-income ratio (DTI). Note that making payments late could hurt your cosigner’s credit as well as your own.

Best credit union for personal loans

PenFed

Fox Money rating

Est. APR

8.49 - 17.99%

Loan Amount

$600 to $50000

Min. Credit Score

760

Pros and cons

No origination fee

Allows cosigners

Small loan amounts available

May fund in 1 to 2 business days

No discounts

Good credit required

More details

Overview

PenFed is a credit union that offers personal loans to applicants with good credit. Though you'll need to become a member to receive a loan, membership is open to everyone. PenFed shines with no origination fees, small available loan amounts, and low interest rates. If you don't have a FICO score above 700, you may not qualify on your own, but can apply with a cosigner with good credit — which is not something most lenders offer.

PenFed doesn't have a minimum income amount, and offers live chat and an entirely online loan application process.

Loan amount

$600 to $50,000

Fees

Unsuccessful payment fee, late fee 

Eligibility

Does not disclose

Min. income

No flat restriction

Customer service

Phone, email, live chat

Soft credit check

Time to get funds

Typically 1 to 2 business days after verification

Loan uses

Debt consolidation, home improvement, credit card refinancing

Repayment terms

12 to 60 months

Best for fair credit

Upgrade

Fox Money rating

Est. APR

9.99 - 35.99%

Loan Amount

$1000 to $50000

Min. Credit Score

600

Pros and cons

Fair credit borrowers eligible

Autopay and direct pay discounts

Can fund in as little as 1 business day

Mobile app

Secured loans available

High maximum origination fee

Cosigners not accepted on home improvement loans

Low J.D. Power ranking

More details

Overview

Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.

However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.

Loan amount

$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)

Repayment terms

2 to 7 years

Fees

Origination fee

Discounts

Autopay and direct pay

Eligibility

Available in all states

Min. income

Does not disclose

Customer service

Soft credit check

Time to get funds

1 business day

Loan uses

Credit card refinancing, debt consolidation, home improvement, major purchase, other

Best for large personal loans

BHG Financial

Fox Money rating

Est. APR

11.96 - 21.38%

Loan Amount

$20000 to $200000

Min. Credit Score

660

Pros and cons

Eligible applicants can borrow up to $200,000

Considers borrowers with fair credit

Long repayment terms

Cosigners allowed

Not available in MD, IL, ND, and MT

No discounts

Minimum annual income requirement of $100,000

Funding takes at least five days

More details

Overview

BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.

Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.

Loan amount

$20,000 - $200,000

Repayment terms

3 - 10 years

Fees

Origination fees, late fees

Eligibility

Available in all states except Maryland, Illinois, North Dakota, and Montana

Min. income

Customer service

Email, phone

Soft credit check

Not on lender's site

Time to get funds

In as few as 5 days

Loan uses

Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other

Best bad credit personal loans

OneMain Financial

Fox Money rating

Est. APR

18.00 - 35.99%

Loan Amount

$1500 to $20000

Min. Credit Score

540

Pros and cons

Flexible eligibility requirements

Offers secured options

Competitive bad-credit loans

Physical presence

Availability

Origination fees

High starting APR

More details

Overview

OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.

Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given. 

Loan amount

$1,500 to $20,000

Fees

Origination fee, unsuccessful payment fee, late fee

Eligibility

Must have photo I.D. issued by U.S. federal, state or local government

Min. income

Does not disclose

Customer service

Phone, email

Soft credit check

Time to get funds

As soon as 1 to 2 days after acceptance

Loan use

All except business, and education

Best fast personal loans for all credit types

Upstart

Fox Money rating

Est. APR

7.80 - 35.99%

Loan Amount

$1000 to $50000

Min. Credit Score

620

Pros and cons

May fund in 1 business day

No minimum credit score requirement on lender site

Low minimum APR

Trustpilot score of 4.9/5 stars

May charge a high origination fee

No discounts offered

More details

Overview

Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.

Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.

Loan amount

$1,000 to $50,000

Fees

Origination fee

Eligibility

Available nationwide

Min. income

Customer service

Phone, email

Soft credit check

Time to get funds

As soon as 1 to 3 business days

Loan uses

Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes

We evaluated the best personal loan lenders for no credit history loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. 

Our team of experts gathered information from each lender’s website, and customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Read our full lender rating methodology for more information.

Lenders use your credit history as a metric when assessing your credit profile. With no credit score or history, you can appear riskier to lenders and may have limited borrowing options. Here’s how to get a loan with no credit history:

Learn more: How to get a personal loan

These loans are designed for borrowers that have no credit or bad credit. As such, lenders offering them may or may not check your credit.

If you are a member of a federal credit union that offers them, consider a PAL. These loans are designed as affordable alternatives to payday loans. Interest rates are capped at 28%, and there’s no minimum credit score requirement. Credit unions may offer one or both types of PALs:

• PALs I offer amounts ranging from $200 to $1,000, with repayment terms up to six months. To be eligible, you must be a member of a credit union for at least one month.
• PALs II offer loan amounts up to $2,000, and repayment terms from one to twelve months. You must be a credit union member to qualify, but no waiting period is required.

A credit-builder loan doesn’t require an established credit history or score and can be available in amounts up to $3,000. However, you only get access to the money once you pay off the loan. You can find credit-builder loans from online lenders, banks, and credit unions.

This type of loan is designed to help people with no credit score establish a credit score and history. Unlike a traditional loan, where you receive the money upfront, the money from a credit-builder loan is put into a savings or certificate of deposit (CD) account.

Each month, you make a payment to pay back the loan, plus interest. Depending on the lender, APRs can range from around 5% to 16% or more.

Your lender will report your payments to one or multiple credit bureaus each month. If you make payments on time, this can help build a positive payment history.

If you’re looking to fund a specific purchase but don’t have a credit history, you may be able to obtain financing through a buy now, pay later service (BNPL). These loans are available through certain retailers at checkout, online, in-store, or through apps. BNPL allows you to split an eligible purchase into smaller installments, such as four payments every two weeks, which may or may not come with interest.

The impact using this type of financing has on your credit varies by plan and service, as well as how you manage the loan. Some BNPL providers/plans only require a soft credit check, which won’t hurt your score, while others may require a hard pull, which can lower it a few points. And some may not check your credit at all. Whether BNPL lenders report your payments to credit bureaus also varies. Be sure to review terms, possible fees, and any borrowing costs before taking out a BNPL loan.

Good to know

Not all BNPL lenders report information to the credit bureaus, but many charge late fees. And missing payments could send your debt to collections, which can seriously hurt your score.

While no-credit-history loans may still check your credit as a matter of course, there are some loans that skip a credit check altogether. These loans often have much higher APRs and fees, offer smaller loan amounts, and have short repayment terms.

Cash advance apps provide quick access to small amounts of money (sometimes up to $500 or more, though this varies between apps) to bridge the gap between paydays. Money is deposited and removed from your linked bank account, and you are expected to pay back the money with your next paycheck. What you qualify for is generally based on the activity in your linked account and how long you’ve used the app for.

While cash advance apps can be much cheaper than payday loans, some have mandatory and optional fees that can make them just as expensive. For instance, Earnin offers fee-free advances up to $750 per pay period. That’s a 0% APR, which is hard to beat. However, if you pay a $4 fast funding fee for a $100 advance, and leave a $1 tip, that’s a 130% APR.

Important

Compare mandatory and optional fees between cash advance apps before choosing one. Avoid paying fast funding fees if possible, and forgo optional tips.

Payday loans are short-term, high-fee loans designed to appeal to people with no credit or bad credit. Like a cash advance app, payment is often due on your next payday, and loan amounts typically top out at $500. Unlike a cash advance app, you’ll generally pay between $10 and $30 per $100 borrowed, which can make payday loans obscenely expensive.

For example, a $200 payday loan with a $20 fee and two-week repayment term translates to a 261% APR.

If you can’t repay on time, some payday loan lenders let you renew the loan for additional fees, which can lead to even higher APRs, and a debt cycle that’s difficult to escape.

If you don’t have a credit history, becoming an authorized user on a credit card is one way to start building one. Consistent, on-time payments on a personal loan could also boost your score. If you can’t qualify for a personal loan on your own, a cosigner with strong credit and income can help you get approved. Another option is to consider a credit-builder loan. You don’t get access to the funds until you’ve paid off the loan in full, but the payments you make are reported to at least one credit bureau.

To borrow money with no credit, you could consider no-credit-check loans. These can provide you with fast access to cash, but also may come with high APRs and fees. A cosigned personal loan may also be an option. A cosigner is someone with good credit who can help you get approved for a loan, but also becomes responsible for paying it back if you don’t. 

Payday alternative loans, meanwhile, may be an option if you’re a member of certain federal credit unions. And if you have your eyes on a specific purchase, you may be eligible to use a buy now, pay later service to split the cost into smaller installments, possibly without interest.

While having no credit history limits your borrowing options, there are personal loan lenders that don’t have a minimum credit score requirement. You’re unlikely to access their highest loan amounts or lowest rates, however. If you’re a member of a federal credit union, you can ask about payday alternative loans, which have APRs capped at 28%. 

You could also use a buy now, pay later service to split up a purchase into installments, or download a cash advance app to access a portion of your next paycheck. Just be sure to compare overall borrowing costs, including interest rates and any possible fees, between options, and consider whether you’ll be able to comfortably fit any payments into your budget for the full length of the term.

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Jessica Martel

Jessica Martel is a professional researcher, freelance writer, and mother of two rambunctious little boys. She specializes in the areas of personal finance, financial literacy, and women and money.

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