Loans for people with no credit history are indicated for those who are going through financial difficulties or just don’t have a good score yet, because they are very young.
We have selected the best loan options for people with no credit history, detailing fees, available amounts, payment terms, approval requirements, and differentials of each financial institution.
You will also understand how the credit score works, why it influences loan conditions and which companies offer greater flexibility for those who are starting out. Keep reading and learn about all the loans for people with no credit history that are worth it.
After all, how does credit scoring work?
You may not even pay much attention to this number, but the credit score says a lot about you.
Basically, it works as a financial reputation calculation, used to assess whether it is a good payer or represents a risk of default.
This score is calculated between 0 and 1000 points, always your behavior with money. Therefore, if you pay your bills on time and if you have active debts, how long you have had a relationship with the market, among other factors.
The higher the score, the more confidence it will convey to the market. In practice, this directly affects your life.
Those who have a low score, as a rule, will have difficulty getting a credit card, taking out financing or even paying in installments for a purchase.
With a high score, the doors open more easily, achieving high limits, lower interest rates and better loan and financing conditions.
Understanding your score is the first step to knowing which loan is best on the market, according to your situation. Today you will learn about the options indicated for those with a low credit score.
There are good practices that you can adopt to achieve better credit conditions in the future, let’s see all the best ways to improve credit score. If you follow these tips, you will improve your score.
Best loans for people with no credit history
1. Sofi (Loans for People with no Credit History)
Sofi offers very attractive personal loans, with an annual interest rate (APR) between 8.99% and 29.49%. Combined with the fact that it can request up to US$ 100,000, with terms ranging from 24 to 84 months,
One of SoFi’s biggest differentials is that you won’t have to pay hidden fees. This is because there is no origination fee, no penalty for advance payment, or no penalty for delay.
In addition, there is unemployment protection, which will support you if you lose your job during the loan period.
Another important point is that you will have the possibility to use a future job proposal as proof of income, as long as the start of work is no later than 90 days.
On the other hand, it is important to consider some limitations. SoFi does not allow co-signers, only co-applicants. In addition, foreigners with a visa must have more than two years remaining in their passport to be eligible for funding.
2. Upstart
Upstart is another interesting alternative, as the APR is at the market average, being charged 6.6% and 35.99%. He can still ask for $ 1,000 to $50,000, to be paid within 60 months. Thus allowing you to adapt the installments to your monthly budget.
You will still have flexibility in credit, since even those who have a low rating (300 points) will be able to have credit at their disposal.
Another positive point is the agility in the process, since the amount is released on the next business day. Another benefit is that there is no penalty for early payment, which gives you the freedom to pay off the loan before the deadline if you wish.
However, be aware of some costs.
Firstly, Upstart charges an origination fee of up to 12%, which is deducted from the amount borrowed right at the beginning.
In addition, late fees are high, with a charge of 5% or $15 (whichever is greater). There is also a $10 fee for those who want a printed copy of the contract, but the digital version is free.
3. OneMain Financial (Loans for People with no Credit History)
OneMain Financial is an excellent alternative, charging an APR rate of between 18% and 35.99%. It is important to note that this rate is high. It is worth mentioning that you can get up to US$ 20,000.00.
Even with a complicated financial history, you can be approved, as long as you meet the institution’s minimum criteria.
At first, payment terms vary from 24 to 60 months, up to you. The disbursement of the amount is fast: if approved, the customer can receive the money within an hour on the debit card via SpeedFunds®, or within two business days by check or account deposit.
On the other hand, you should be aware of the origination fees, which vary according to the state where you live. They can be fixed (between $25 and $500) or a percentage of the amount borrowed (from 1% to 10%). There is also a late fee, which ranges from US$ 30 or up to 15% of the amount due.
It is crucial that you know that OneMain imposes some important restrictions:
- Military customers cannot offer vehicle as collateral;
- The loan proceeds cannot be used for higher education, business, investments, cryptocurrencies, or gambling;
- Customers already active with OneMain should contact us directly to inquire about new options.
Thus, if you are looking for agility, simplified approval and face-to-face and digital service, OneMain Financial is an excellent option.
4. Prosper
Prosper offers great credit options, where you can get up to $50,000, being able to pay off the credit in up to 60 months.
Furthermore, the annual percentage rate (APR) ranges from 8.99% to 35.99%. And, if you open an account with Teachers Federal Credit Union during the application, you can earn up to 1% off your loan rate.
Among the benefits of Prosper is that you can apply for credit together with another person. Thus, your final installment will be lower.
However, it is worth paying attention to some conditions. The origination fee will be up to 9.99%. The time for the amount to be deposited also varies greatly, and can reach up to 14 days. Additionally, this credit is not available to those who reside in Iowa or West Virginia.
Conclusion (Loans for People with no Credit History)
Looking at loans to people with no credit history, it’s clear that starting from scratch doesn’t mean you’re out of options. Whether you’re starting your financial journey or recovering from previous challenges, there are lenders offering solutions that combine flexibility and speed.
Each of these institutions offers different conditions, which is why you should be aware of to make an excellent choice. However, you should review the fine print, especially fees and limitations, before applying.
So, if you’re looking to build your credit while solving financial needs, these loans for people with no credit history are great options you should consider.