How Do I get a loan Without A Credit Score?

By Mav OT •  Updated: 01/23/24 •  5 min read

Securing a loan with a credit score comes at an easy pace and becomes better with a good credit score. But what happens if you want a loan but with no credit score?

Loans are offered based on your overall income, assets and ability to pay. While these are important, your ability to pay a loan can be determined by your credit score. 

- ADVERTISEMENT -

It is always important to take note of your credit score to boost your chances of securing loans. 

In the case where one wants to get a loan without a credit score, he or she may have to find other means to inform lenders about his creditworthiness. 

In this blog post, we will take you through how a loan can be obtained without a credit score. We will delve into more topics on the absence of credit scores and its effect on securing a loan. 

How Do I get a loan Without A Credit Score?

It can be quite challenging to find a lender who is willing to lend money if you have little or no credit history. 

Not having a credit history can pose a challenge when trying to qualify for a loan. If you lack a credit history, it indicates that you have not engaged in any borrowing or credit card activities, resulting in a lack of information that can be reported to the three major credit bureaus: Equifax, Experian, and TransUnion.

In this situation, it is important to locate a lender who considers factors other than just your credit score when determining your eligibility for a loan. These factors may include your income and employment history. 

Obtaining a personal loan without a credit history can be challenging, but it is still within reach. Here are a few ways to secure a loan with no credit score.

How big of a loan can I get with no credit score?

What is considered a big loan in the first place? Big loans can be very relative considering the income levels and loan application criteria for each individual.

A big loan could be personal for an individual and having a fair amount in mind could help you prepare. 

Securing a big loan with no credit card is a big risk for lenders and can be extremely difficult. With a well-valued item or property, one can get a big loan from a lender. That item or property will serve as collateral in processing and securing the loan. 

Why is no one approving me for a loan?

Various factors may delay the approval of a loan, including a low credit score, inadequate income, a high debt-to-income ratio, and the absence of collateral. 

Additional factors could be a track record of delayed payments, a short credit history, or recent instances of bankruptcy. 

In addition, factors such as inconsistent job history, insufficient paperwork, or requesting a loan amount that exceeds one’s ability to repay can lead to loan rejection. Every lender has their own set of criteria, and various factors or even just one significant issue could lead to the rejection of a loan application.

What is the easiest government loan to get?

There are a lot of government loans in the system but one of the easiest to get is a business loan. In every economy, the government finds it deemed fit to secure businesses by supporting them with loans. And as such, the process, although may be cumbersome, it is a matter of providing the needed documents for the funds.
The easiest loan one can get is a business start-up or business growth loan from the government. 

- ADVERTISEMENT -

Keep Reading

What Happens To My Debt When I Leave South Africa?

What Happens To My Debt When I Leave South Africa?

Let us take you through what happens to your debt when you leave South Africa and other related topics. 

How To Check Credit Scores On Standard Bank App

How To Check Credit Scores On Standard Bank App

We’ll also explore how to increase your credit limit within the app and provide tips if your home loan application is declined.

How Long Does A Credit Check Take in South Africa

How Long Does A Credit Check Take in South Africa

Let us find out more about how long it takes to check credit for a car, job, mortgage, phone etc. 

How to Buy A Car With A Low Credit Score

How to Buy A Car With A Low Credit Score

While you are here let us find out more about how to buy a car with a low credit score. Although it is not impossible, the question lies within the process.

How To Check Credit Score Online South Africa

How To Check Credit Score Online South Africa

This article discusses how to check your loan rating online in South Africa, calculate your rating, what app shows your real loan rating, and where the best place to check your rating is.

How To Cancel Credit Cards Without Impacting Credit Scores

How To Cancel Credit Cards Without Impacting Credit Scores

Similarly, if your gold card company is charging high annual fees, it may be prudent to cancel it. These points will be explained in great detail in the article.

What Jobs Check Your Credit Score

What Jobs Check Your Credit Score

However, credit scores are becoming increasingly important as a decision-making factor for South African employers. Here’s what you need to know.

How to Have a Spotless Credit Score (South Africa)

How to Have a Spotless Credit Score (South Africa)

You can still have a fantastic credit score that practically guarantees lenders will want to throw money at you without reaching the highest possible score.

How to Maintain A Good Credit Score

How to Maintain A Good Credit Score

On the contrary, we will take you through how to maintain a good credit score, the need to maintain the credit score and some of the things that can affect your credit score.

How to Download Your Credit Score Via Checkers

How to Download Your Credit Score Via Checkers

This initiative hopes to empower South Africans to better understand and use their credit report as a tool for growth. Curious to know more? Let’s take a deeper look.

Why It’s Important to Maintain a Good Credit Score

Why It’s Important to Maintain a Good Credit Score

Why Is It Important to Maintain a Good Credit Score? Read on to learn why it is important to maintain a good credit score. 

Which Debt Should I Pay Off First to Improve Credit Score?

Which Debt Should I Pay Off First to Improve Credit Score?

In this blog post, we are going to take you through a journey of debt payment, credit score improvement and many more. 

How to Apply for a Credit Card With Bad Credit

How to Apply for a Credit Card With Bad Credit

Today we will walk you through everything to know about applying for a credit card with bad credit, and how you can improve the situation. 

Why Does Checking My Credit Score Lower It?

Why Does Checking My Credit Score Lower It?

This article explores everything you want to know about checking your credit history and its impact on your credit score

How Many Credit Checks Are Too Many In South Africa

How Many Credit Checks Are Too Many In South Africa

How Many Credit Checks Are Too Many In South Africa. Let us get deeper into the credit check limitation and its associated consequences.