A credit score is a record with which the financial authorities can define the credit quality of the consumer. The higher the score, the easier it will be for the consumer to see a loan or credit application accepted.
A bad credit score is presented as a challenge for the consumer, since it will be more difficult to access loans and credit cards; Even if he does obtain them, he will face the payment of higher interest or the obligation to give previous deposits, either in cash or in material goods.
What does it mean to have no credit score?
A non-existent credit history puts a person’s ability to apply for personal credit at risk, since lenders have no way of verifying that the person in question is qualified to cover the expenses related to said income.
People who are in this situation, especially young people who are still studying or who are just finishing their university studies, could have difficulties applying for credits and having them approved.
What if you have a bad credit score?
A bad credit history means that it will be more difficult to access loans and credit cards; to obtain them, the consumer will face higher interests or the need to grant deposits either in cash or in material goods.
A recommendation that is made to consumers is to keep a continuous record of their credit history to identify which operations could be putting their credit report at risk (if they have delayed in their payments, if they have requested amounts greater than those that are able to pay or if you have more than three or four credit cards).
What is a personal loan without credit?
What happens when a consumer wants to obtain a personal loan but does not have a credit history? The answer may lie in payday loans or payday loans, that work in the short term.
Another option is car title loans; In both cases, the lender will give more weight to the information contained in the bank account and the salary received, with quick payment plans of between a week to a month.
What are the advantages and disadvantages of a personal loan without credit?
Any financial process represents advantages and disadvantages for the consumer; In the case of personal loans without credit, the main benefit is that the client only has to fill out one application, either online or in a branch. With this request, the lender will resolve immediately or briefly.
Regarding the disadvantages of this type of loan, it is found that the interest rates are much higher than in other cases, in addition to the fact that the terms to pay the total debt payment are much lower.
Requirements to obtain a personal credit in the United States
Among the requirements to obtain a personal credit within the United States is, first of all, being a resident of the country, in addition to having a minimum source of income of $ 850 per week.
Other requirements are: show electricity or telephone receipts with the beneficiary’s address, be over 18 years old and provide the social security number (does not apply for California, Arizona or Illinois)
Where to get a personal loan without credit
1 Online Lenders
One of the most accessible ways to access a personal loan without credit is with online lenders, who take all your information into consideration to approve or deny a personal loan.
Lenders such as Prosper and Lending Club specialize in personal loans for people with no credit history, and it is for this reason that they strive to contemplate the financial profile of the applicant.
2 Payday Loan Companies
The option of payday loans are accessible to people who want to obtain a financial benefit without having to go through a credit check process.
One downside to these companies is that their APRs are extremely high, around 400%, while at a bank these rates can be as low as 10%.
3 Credit unions
People who are part of a credit union can get a loan, with the advantage that no one will check their credit history or credit score. These cooperatives tend to have user-friendly policies.
It is possible to access local credit cooperatives or under the auspices of an employer, in addition to maintaining relationships with some organizations in different states.
4 Title Loans
Title loans, like payday loans, require the beneficiary to own property to access a loan without a credit check.
Among the most requested properties are automobiles, whose title deed serves so that the lender has a guarantee that the loan will be paid off in full, even if the beneficiary does not have the money.
The best personal loans without credit in the United States
1 Opportunity
With Oportun, you can request loans of between $ 300 and $ 10,000, with APR rates that, according to their policies, will never exceed 36%, which makes it ideal for most users.
One of the advantages of Oportun is that it is possible to access loans within the established range in a period of up to two hours, in addition to saving up to $ 1,000 in the payment of the first personal loan.
2 Lending Club
Lending Club is an option that is presented as an affordable option to obtain a personal loan for up to $ 40,000, with fixed interest rates and low monthly payments.
This platform divides the types of loans into: home purchase, home renovation, car financing, business investment, vacations, debt consolidation, among others.
3 OneMain Financial
One of the main advantages of OneMain Financial personal loans is that they can be made 100% online, in addition to having the mission of not affecting a person’s credit history.
OneMain Financial specializes in offering loans between $ 1,500 and $ 20,000, with an APR of between 18% and 35.99%, with minimum payments of $ 176 per month.
4 LoanMart
Loan Mart is advertised as a viable alternative for people who do not have a credit history and who need a loan urgently; specialize in payday and auto title loans.
According to their website, the option they recommend the most and the one that is most used is the car title loan, since the interest rate is lower and the payment terms are between 12 and 36 months.
5 Cooperativa Latino Credit Union
With the Latino Credit Union cooperative, consumers without formal credit history can obtain personal loans of $ 500 to be paid in a minimum period of 6 months and a maximum of 48 months.
The advantage of this cooperative is that it does not charge any special fees or charges in the event that the beneficiary decides to pay the loan in advance of the date agreed in the original contract.