How to Get A Loan Without Credit Score
Are you struggling to get credit with no credit score? Well, you aren’t alone. There are thousands of people without a credit score. They are struggling to get credit. Luckily, with the following tips and tricks, you can easily secure a loan without a credit score. Keep reading to find out how you can secure a loan with a bad credit score.
A good credit score will get you a loan with lower interest rates. Still more, your terms will be better. However, that doesn’t mean that you cannot get a loan without a credit score. This guide is going to explore the options where to find my credit score when it comes to getting a loan when you don’t have a credit history.
Understanding A Credit Score
A credit score represents your creditworthiness. It’s actually a three-character-based report. Updated monthly, a credit score will show how prompt you repay your loans. If you delay repaying your loan, your credit score will be poor. However, those who pay promptly tend to have an excellent credit score.
Here is a breakdown of credit score:
- 700 and above is a good credit score
- 800 and above is an excellent credit score
- 700 and below is a poor credit score
Reasons for Not Having a Credit Score
If you have a thin credit-based file, you won’t have a credit score. This means that people with less than four transductions have a thin-based credit file. That’s why financial institutions cannot have a credit score for people with thin files. Also, if your credit card has very few transactions, you won’t have a credit score.
It’s important to note that not having a credit score means that you are locked from credit facilities. The only option you have is to take low-cost loans like payday loans. Apply now and get your loan with no credit score.
Loan Options When You Don’t Have Credit Score
There are a few options you can pursue if you don’t have any credit score. Here are some popular options:
Secured Credit Card
Here, you will be required to deposit some money. This money will act as collateral for the credit card. In most cases, the amount you deposit will be your credit limit. Ideal for people with no credit limits, secured credit cards can help you build a strong credit score.
Secure credit monitoring is the process of periodically reviewing your credit report for accuracy and changes that may indicate fraudulent activity. Credit monitoring can be done either manually or by using a top-notch credit monitoring company.
Credit Builder Loan
These loans are also used to build credit history. Here, the loan amount will be held in your savings account while you are still making payments. You will only access the funds once the credit builder loan is fully paid off.
Store Credit Card
Store credit cards are usually associated with retailers. You can get these cards from your local retailer. You can use these cards to purchase specified goods. However, the purchases must be made at that store.
Of course, you need a good credit score. However, if you don’t have a credit score, your creditworthiness may hinder you from getting a loan. But with the above tips and tricks, it’s possible to secure a without a credit score.