Personal loans for no credit history

Borrowers with no credit history typically see advertised APRs from 19.99% to 35.99%. The exact rate depends on income, existing debt, and other factors.

If the rates you see are high, consider whether you can wait and improve your credit, or whether a co-signer could help you qualify for a lower APR.

A thin or empty credit file is not the same as a bad one, but most scoring models cannot price it. Some of our partners use alternative data such as education, employment and income, which can open options a score alone would not.

Where alternative data is not enough, collateral can be. A secured offer backed by a vehicle gives the lender something to price against when your file does not, though it also puts that vehicle at risk.

Expect to verify income carefully and to be offered a smaller amount than your income might otherwise support.

None of these are instant, but each one moves the APR a lender will quote someone with no credit history.

• A secured card or credit-builder loan can establish a file within six months
• Getting added as an authorized user on an established account can help
• Keep utilization low from the start on any new account
• Have pay stubs, bank statements and employment details ready for verification

Most personal loans from our lending partners are unsecured and fixed rate. With no collateral involved, the lender prices the loan almost entirely on how likely it believes you are to repay. That judgment is built from your credit history, your income relative to your existing debt, how long you have been employed, and the amount and term you ask for.

Personal loans can also be secured by collateral, such as a motor vehicle. Pledging collateral can support a larger amount or a lower rate, but it puts the vehicle at risk if the loan is not repaid. Secured options vary by lender and may not be available through the lenders currently listed here.

The number that matters is the APR, not the interest rate. APR folds in the interest rate plus any origination fee, so it is the only figure that lets you line two offers up fairly. A loan quoted at a lower interest rate can easily cost more once a 6% origination fee is deducted from the money you actually receive.

• Credit history and score band: the single biggest driver of the rate you are offered
• Debt-to-income ratio: monthly debt payments measured against gross monthly income
• Loan amount and term: longer terms usually carry higher rates
• Income stability: length of employment and whether income is verifiable
• Whether the loan is secured: collateral can lower the rate a lender is willing to offer
• State of residence: not every lender lends in every state