Approach a Lender or a Bank Directly

Approach a Lender or a Bank Directly

Individuals with no credit history have “a thin credit file”, meaning their credit history has few or no credit accounts. Individuals having thin files usually have to obtain new credit with difficulty. That is due to the absence of credit history, making it unfavorable for lenders to check risk factors.

When you have a thin credit file, you need to assess your credit report carefully. Therefore, you should start by acquiring your credit report and checking it. Here, you should look for any errors and also ways by which you can improve your score.

If you notice any problems, you should get them repaired quickly, as this might improve the total credit score and result in a lower rate of interest. You can go to to get your scores from the three primary credit bureaus, which are:

  • Equifax
  • Experian
  • TransUnion

When you request a personal loan, the creditor will use your report to determine if you can repay the loan on time. In the perfect scenario, you must look at it three months before applying for a personal loan. This will give you a chance to repair any issues on the report and dispute them for the best results.

Creditors also look at your FICO score (between 300 to 850) while considering you for a loan. Scores of or below 669 are “poor” or “fair”, while above it is “excellent” or “good” according to their position.

You can also pay off a credit line that goes above 30% of the limit or repay a debt that has entered collections.

Determine a Budget

Determine the amount you need to borrow and then plan to ensure you can pay those installments on time. So, look at your budget accounts you use for basic requirements like housing, food, transportation, and savings and credit card payments.

After you determine how much you will pay every month, look at the repayment amount and term. The more time you take to repay the loan, the more interest you will pay. The APR and interest rate (fixed or variable) will affect your monthly installment. So, ensure you do not forget to consider additional fees as well.


To save on the interest rate, you should browse and compare different lenders. Acquiring a personal loan is not something that should be done with haste. Instead, you need to take the procedure seriously, and take the time to get the best rate of interest.

Most online lenders get you pre-approved, and these will display the interest rates offered by lenders. Pre-approvals are important, as they act as soft pulls on credit reports and show you interest rates for your credit score.

This method of browsing through no credit loan conditions and rates before you apply is beneficial. You must aim at getting pre-approval from lenders who can do soft pulls on your report, as you will then be able to see the best interest rates and apply for the most suitable one.

You can go to a lender or a bank directly if you have no or little credit and desire to utilize different financial indicators, such as income and employment.

Additionally, many money lenders use supplemental details like personal information that credit reports do not include. They use this data to see if you would pose a risk as a borrower. This way, they get a comprehensive view of your financial profile to consider your request thoroughly.

Furthermore, if you work with a lender that considers supplemental details, you will improve your possibility of getting a loan. Not only that, but you might also get better conditions with your personal loan.

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