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How to Get A Personal Loan With No Credit

Getting a personal loan without a credit score can be difficult, but don't worry, CU SoCal can help!
Although there are borrowing options available to people with no bad credit or no credit, it's important to be cautious, as many loans (such as no credit check loans), carry extremely high interest rates.
While most lenders require a credit check before loaning money, as its name implies, no credit personal loans don’t require that your credit history or credit score be looked at as a measure of your creditworthiness.
Loans with no credit check may require that you do show proof of employment or proof of income in the form of a bank statement. Some lenders may even require that the borrower put up collateral (such as a car or item of significant value), so if the loan amount isn’t paid in full the lender will seize the collateral.
At Credit Union of Southern California (CU SoCal), we’ve provided low-interest personal loans to Southern Californians for over sixty years, and we’re loved by our Members for our remarkable service, great financial service products, and affordable fees.
Even if your credit history isn’t perfect, don’t worry, because unlike a traditional bank, we don’t think that your credit score tells the whole the story. Come in and talk to us and let’s see what we can do!
If you’re in need of a first-time personal loan with no credit history or a no credit check personal loan call CU SoCal at 866.287.6225 to schedule a no-obligation loan consultation or apply online for a personal loan today! 

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How Do Personal Loans Work?

A personal loan is a loan provided to an individual by a lender for an unspecified use. In other words, a personal loan can be used to purchase whatever you need, with no restrictions. Once you receive the loan funds in your account, you withdraw the money as you need it, and make monthly payments toward the repayment of the loan.
No credit personal loans may be available from credit unions, banks, and online lenders. Each lender will offer unique interest rates, loan terms, fees, and possibly a prepayment penalty, so be sure to get all the details before you sign.
The best place to start is where you do your banking now. Your credit union or bank will have quick access to your account information that will help speed-up the loan approval process. This is true even if you are looking for personal loans for no credit history.
Borrowers can choose between secured and unsecured personal loans. A secured loan requires that you use one of your assets as collateral to “secure” the loan, promising the lender that they can take that asset if you fail to repay the loan in full. Unsecured loans do not require any form of collateral, meaning you don’t have to promise anything to secure the loan.
Once approved for a personal loan, the money will be deposited into your account and you may use it for any expense you may have.
Get more details at What are Personal Loans.

What Can Personal Loans Be Used For?

Personal loans can be used for any expenses you need to cover, but they are often used for home renovations, starting a business, paying a medical bill, consolidating high-interest debt, covering a large expense such as a wedding, funeral, tax lien or college tuition. There are pros and cons to some personal loan uses, so you should always research loan options, interest rates, and payment terms before you sign to accept personal loan funds. Learn more about what personal loans are used for.

Why You Don't Have a Credit Score

Many people do not have a credit score, these includes young adults, immigrants who haven’t established accounts, and other people who have not applied for credit.
To apply for first-time personal loans with no credit history, the lender will ask you to provide documentation, including proof of identity, proof of employment/income, W-2s, 1099s, and income tax returns, to name a few. The lender will also ask your permission to look at your credit score. Lenders look at an individuals’ credit score as a measure of their creditworthiness.
But what if you don’t have a credit score? Not having a credit score could make it more challenging, but not impossible to get approved for a personal loan (or any other loan). People with bad credit or no credit history can usually get approved for no credit personal loans and first-time personal loans no credit history.

Here are some common reason why someone might not have a credit score:

No Credit Accounts: Individuals who have never applied for or been approved for a loan or credit card won’t have a credit history or a credit score.
Haven't Used Credit in the Past 24 Months: Anyone who has credit available to them (in the form of a credit card, personal loan, or personal line of credit), but has not used the credit in a 24-month period, may see their credit score drop or disappear. Credit use needs to be fairly regular for credit bureaus to log the activity and credit scoring companies (such as FICO) to generate a score.
Recent Immigrants: If you’re new to the U.S., the credit bureau Experian suggests that recent immigrants check if their bank in their home country operates in the U.S. Some international banks, such as Citibank or Barclays, may issue a U.S. credit card for clients moving to the U.S. To establish credit, you will also need to apply for a U.S. Social Security Number. Then, to start building credit, apply for a credit card.
Young Adults with no Established Credit: Young adults who have not applied for credit cards will not have a credit report or credit score. However, they can start to build credit by applying for a credit card or a Credit Builder Loan from CU SoCal. Some young adults establish credit when a parent co-signs a car a loan with them.

Getting a Personal Loan With No Credit

There are always lenders willing to lend fast cash, however, these options come with a high price in the form of high interest rates, fees, and possible scams. 

Here are some options for personal loans for no credit history:

No Credit Check Loans: While most lenders require a credit check before loaning money, as its name implies, a no-credit-check personal loan doesn’t require that your credit history or credit score be looked at as a measure of your creditworthiness. Although no credit check loans are a quick and easy option for obtaining cash, they carry several significant risks, and for the most part, should be avoided.
Payday Loans: These are short-term loans that come with high fees. According to, a payday loan is usually repaid in a single payment on the borrower’s next payday, or when income is received from another source such as a pension or Social Security. The due date is typically two to four weeks from the date the loan was made. Lenders don’t usually charge interest on payday loans, instead they charge an application fee relative to the amount borrowed, which typically range between $15 and $35 per $100 borrowed.
Payday Alternative Loans: explains that to provide credit union Members with an alternative to high-cost payday loans, the National Credit Union Administration (NCUA) allows federal credit unions to offer small-dollar loans called PALs. The borrower must be a Member of the credit union for at least one month. A federal credit union can charge an application fee only in the amount needed to recoup the actual costs associated with processing the application, up to $20. PAL amounts can range from $200 to $1,000. The loan term must range from 1 to 6 months. Up to three PALs may be granted to the same borrower during a six-month period, as long as no PAL overlaps or is rolled over.
Cash Advance Loans: If you need cash in a hurry, getting a cash advance can be as quick and easy as a trip to the ATM. But that convenience comes with a price — a high interest rate. All credit card companies set a limit to how much of a cash advance each customer is allowed, so check with your credit card provider so you know your limit and the interest rate you’ll be charged.
Pawnshop Loan: With this type of loan, you go to a pawnshop with a piece of property to pledge as collateral, and in return, the pawnbroker lends you money on the spot. Pawnshop loans can be made on any item of value that the shop agrees to take, including jewelry, power tools, electronics, firearms, musical instruments, and sporting equipment such as bicycles and surfboards. If you do not repay the loan under the specified terms, the shop keeps the collateral property.
Title Loans: A title loan is based giving a lender the title to your vehicle, which can be for a car, truck, or motorcycle. According to, you also pay the lender a fee to borrow the money and you usually have to repay the loan in 30 days. Car title loans can be very expensive. If you cannot repay the money you owe, the lender can take your vehicle.

Alternatives to No Credit Personal Loans

There are credit alternatives designed for people with no credit or bad credit. These include the following:
Co-Signed Loan: Getting a loan with a co-signer means having another person sign the loan with you. This is ideal for young adults who haven’t established credit. If you have bad credit or no credit history, having a co-signer makes getting a loan easier because it gives the lender added assurance that the loan will be repaid. The co-signer should be aware that they are accepting full responsibility to pay back any payments missed by the primary signer/borrower, and even pay back the full loan amount if the primary borrower is unable to pay. This can negatively affect the co-signers credit.
Credit Builder Loan: This is ideal as a first-time personal loan for people with no credit history or bad credit. Offered by credit unions and banks, Credit Builder can also help individuals who have a low credit score. This loan builds your credit score when your on-time payments are reported each month to all three major credit bureaus. Credit scoring companies, including FICO, will see the loan in your credit report and give you points for adding to your credit mix and making on-time payments.
Secured Credit Cards: These are designed for people with little or no credit history and those who have bad credit. In order to get a secured credit card, you must deposit an amount of money into an account to “secure” use of credit. The credit available to you will be drawn from the security amount. Then you can use the card to make purchases, as you would any other credit card.
Secured credit cards can be issued by credit unions and banks, as well as the credit card companies, including Visa®, Mastercard®, Discover®, Citi®, and others. As you make on-time monthly payments, the card issuing company will report the payments to the major credit bureaus, helping you build credit. However, if you make late payments, miss payments or don’t pay at all the credit issuer can keep your security deposit.
Secured Loans: A secured personal loan differs from a standard unsecured loan in that it requires that the borrower put up an item or savings account as security (also known as collateral), in the event that the borrower is no longer able to pay the monthly installments. If you're stop making payments on the loan, not only will your credit suffer, but you'll also lose your security. Learn more about secured and unsecured loans.

How to Build and Improve Your Credit History

If having no credit history or bad credit is preventing you from getting approved for credit cards, loans, or even employment, you can take steps to start building or rebuilding credit and raising your credit score.
One way you can establish a credit history is with the CU SoCal Credit Builder Loan. Start by applying for a CU SoCal share certificate for $1,000. While you do not receive the funds up-front, each time you make an on-time payment, a portion of the loan balance will be made available to you. After successfully making payments for one year, you receive $1,000 cash. By making on-time payments during the year you’ll establish or build a credit history and credit score.
Check out these tips on How to Rebuild and Improve Your Credit Score

CU SoCal Personal Loans

 CU SoCal is helping Southern Californians get the funds they need to pay for life’s necessities. Our personal loan features include:
  • Financing from $500 to $30,000
  • Rates as low as 2.50% + Share Certificate Rate
  • Terms up to 120 months for the lowest possible monthly payment
  • Line of credit option for access to funds when you need it
  • No application fee
  • No prepayment penalty
  • No funding fee
 See details on CU SoCal Personal Loans. 

Why Savvy Consumers Choose CU SoCal

For over 60 years CU SoCal has been providing financial services, including car loans, personal loans, mortgages, credit cards, and other banking products, to those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County.
Please give us a call today at 866.287.6225 today to schedule a no-obligation consultation with a personal loan representative.
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Credit Union of Southern California (CU SoCal) is a leading financial institution empowering those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County to reach their goals and build strong financial futures. CU SoCal provides access to convenient money management services and offers competitive rates and flexible terms on auto loans, mortgages, and VISA credit cards—turning wishing and waiting into achieving and doing.


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