One of the catch-22’s of the credit world is that you need credit to get a credit score, but without a credit score, it’s hard to get credit. Many young people enter the world with no credit on their record and find it hard to get a home or car loan because they don’t have a credit score.
A no credit score loan isn’t impossible if you know where to look, so we’ll show you how you can find the right loan even without a credit score. When you ask yourself, “Can I get a loan with no credit score,” you can answer confidently, “Yes, I can.”
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No Credit Score Loan: The Co-Signer
One of the most popular methods of getting a conventional loan with no credit score is through a co-signer. A co-signer is someone with a credit score who promises to pay the loan if you are unable.
It’s a big responsibility to take one because defaulting on your loan impacts their credit score as well. Usually, co-signers are a relative or close friend who trusts you’ll make the payments.
The lender draws up the loan and they co-sign it with you. You make the payments, and the co-signer only gets involved if you miss payments.
Hard Money Loan
A hard money loan is based not on the financial status of the lender, but on collateral assets. These are most commonly used for short-term loans and use a car or other property as security. If you default on the loan, then the loan company takes the property.
Lenders make decisions based on the value of the collateral. This makes the decision process faster because they care less about your credit score. Many hard money lenders don’t consider the credit score at all.
There are many benefits of working with hard money lenders, so learn more about these types of loans and how they can help you.
Do Your Research
There are many types of lenders out there, and many help people with no or low credit scores. Start by researching as many lenders as possible and finding one with the best interest rates and repayment options.
You should also consider any fees the lender may charge you. Choose the loan options that work best for you and fill out the loan application. They’ll check your credit, but if you talk to the lender about this beforehand, they may be able to work with you.
You may require a down payment or another way to secure the loan. Once the lender examines the application, they’ll inform you of the decision. If you did your research and chose the correct lender, then you should be approved.
Get Your Loan Today
It’s more than possible for you to get a no credit score loan if you know where to look. No matter the reason you need it, follow these tips and you’ll be approved in no time.
If you want to learn more about no credit or low credit score loans, then please explore our site.