Lenders label individuals with no credit history as 'high risk'
. Being considered 'high risk' can be the 'kiss of death' when it comes to getting approved for unsecured loans. Why? Because unsecured personal loans require no collateral. So, the lender loaning you your money trusts you that you will make timely payments. This is not a personal issue of trust, it is a credit issue. Lenders do not want to lend unsecured loans to people with no credit or bad credit, period.
By now you are asking yourself, 'How do I turn my no credit history into a positive one so that I can apply for a personal loan and get the cash that I need?'. Easy! Being labeled 'high risk' makes it hard to get approved for certain types of loans and credit, but not all.
Did you know that applying for a used car loan is one the best means for building or rebuilding credit? How? When you take out a car loan, you are securing your loan with the car that you are financing. If you do not make the payments, you will lose the car. So, the lenders are much more inclined to provide car financing to people with no credit before they approve an unsecured personal loan.
Another great way to build your credit history is to apply for a credit card. There are a few credit cards available on the markets that are specifically designed for people with no credit and bad credit. Be careful! You do not want to put yourself into debt with the use of your new credit card. You want to make only a few charges a month,/ These charges should be small
About the author
Julie Mann is the webmaster/marketer of Choice Personal Loans. Choice Personal Loans specializes in providing unsecured loans with no credit.