Many lenders marvel why someone without a credit history did not even attempt to request for a loan. Is it because he or she never required a loan before? Or is it because he or she is already certain that his or her loan application will not be granted?
Although there are what you call the no credit payday loan, having no credit history is a drawback for many borrowers. The reason behind this is that lenders will not be able to gauge their risk in lending money to someone who has no credit history. Unless the borrower can present collateral, the lender will not be able to decide how much loan amount he can offer the borrower, the loan duration he can provide, and how much loan fee he can charge.
In order to have a credit history, a person should start applying for financial products, such as credit cards. No credit payday loan lenders do not perform credit records evaluation anymore, so those people without credit history may apply for this loan. However, this loan will require a borrower to have a checking or savings account, which is a good start in building a credit history since deals made with savings and checking accounts are reported to credit agencies.
If possible, apply also for a credit card. Use the credit card whenever needed and compensate the full balance on its due date. By doing so, the transactions using the credit will be included in the credit history and will increase the credit score of the holder considerably. Increasing the credit score will surely help an individual acquire a loan easily, particularly the no credit payday loan.
To apply for a loan, the best place to ask for it is those institutions where the person opened his or her savings and checking accounts, as well as the credit card. If the loan has been denied, the no credit payday loan is another option. There are also numerous online that may be applied to, such as some online car loan that allows even those people with bad credit records to apply.
Also, acquiring recommendations from any creditor or a person’s employed stating that the person is a good payer significantly improves his or her chances of getting a loan approval. Although it sounds a little idealistic, these recommendations will be taken into consideration by many lenders, including traditional lenders and no credit payday loan lenders.