Can You Get a Loan with No Credit?
June 10, 2021 | Daniel Dewitt
Are you credit invisible? That is, do you lack a credit score at all? Not because you have bad credit, but because you have no credit? If so, you're in good company. 26 million people in the United States have not built up any credit history.
People who have no credit history may have only recently begun living in the United States. Or they have a preference for paying for things with cash or debit cards. Or maybe they're just young and haven't had the time or the opportunity to start building credit. So, when the day comes for a loan, the question looms: Can you get a loan with no credit?
Can You Get a Loan With No Credit: It's Not The Same as Bad Credit
Here's the good news. There's a clear difference between no credit and bad credit. Having no credit is not the equivalent of being bad with money. Someone with no credit may actually be excellent with handling money, they just haven't had an opportunity to prove it yet.
More good news. There are lenders who would still be willing to offer you a loan. So, can you get a loan with no credit? Depends on the kind of loan.
For instance, a traditional bank loan would be nearly impossible to get with no credit. Typically, banks require good to perfect credit score as a proof that a borrower can pay the loan back. In case of this loan type, credit history serves as a guarantee of the loan repayment. That’s exactly why your chances of getting a personal loan are incredibly low.
It's a different story with secured emergency loans, such as car title loans. In case of this loan type, a title to a vehicle acts as collateral and guarantees that the money will be paid back. That’s why credit history doesn’t play the primary role in qualifying borrowers for title loans.
The main purpose of car title loans is to cover the emergency expenses, such as:
- Debt consolidation
- Unexpected important travels, such as for wedding or funeral
- Emergency car repairs
- Medical bills
- Emergency home repairs
Can You Get a Loan With No Credit: Why Lenders Eye Your Credit History
When lenders give out a loan, it represents a temporary loss of money for them. And if that loan is not repaid in a timely fashion, or repaid at all, that's money that may be lost permanently and has to be recovered through expensive legal processes.
So, lenders are critical of credit scores because they want to make sure that they're lending to someone that can pay the money back on time. So, can you get a loan with no credit? Possibly, but you'll be under a microscope.
Building Credit History From Scratch
Apply For a Secured Credit Card
A secured credit card will not grant you as much freedom as a typical one would, but it's a very safe way to build your credit. When approved, you deposit some of your own money in the issue or security account. And your credit card will have a credit limit that matches the amount of money you deposited.
Then you make your purchases and payments and prove that you are capable of making regular payments on time. Credit bureaus will notice this and will open the freedom to apply for better credit cards as your credit history builds.
Your Best Odds Yet
If you outright own your car, and the title has your name on it, you have an extremely good chance of getting a car title pawn with Georgia Auto Pawn, Inc.
The ticket is the title from a car, a truck, or a van. Titles from motorcycles, recreational vehicles, boats, or trailers cannot be used.
A car title pawn is a good resource for people who have bad credit or no credit. True, they won't help you build your credit history, but at the same time, they won't affect it in a negative way.
So, whatever your credit status, good, bad, non-existent, you don't have any reason to hold back from applying for a car title pawn.
Even better news, you won't be deprived of your car during the term of the car title pawn. You'll still be able to drive it as usual. The only thing you leave with the lender is the lien-free car title.
Quick and Painless Application
You can begin the car title loan application process from the comfort of your own home. Once contacted by an agent, you will be guided to a nearby facility. So, be prepared to do a part of the application process in person, outside of your home.
Your vehicle will also need to be ready for inspection so that its value can be assessed and translated into the amount of the loan.
But from the beginning to the end, this can be a process that takes no more than 30 minutes, ending with you walking away with the title cash that you need.
Make Georgia Auto Pawn Your Next Stop for Emergency Cash
Remember, when it comes to Georgia Auto Pawn, Inc. you don't need to worry about your credit history, or lack thereof, before you apply. Pay us a visit today. So can you get a loan with no credit? Yes, definitely!