No Credit History Loan
If you have never been issued credit, or never used a credit card then you will not have a credit rating, and lenders can be wary of lending to you.
You still, however, may be able to get a no credit history loan, by applying using a non-traditional credit history. To create a non-traditional credit history you should
- Keep a copy of bills
- Keep canceled checks
- Ask your landlord and utility companies to write how long and how well bills have been paid.
This will show lenders that payments have been made consistently and on time. A history of two years or greater is ideal. Also though excessive credit card usage can have a negative effect on credit, responsible use of a credit card is a fast way to build up a good credit score. Sometimes lenders may allow credit cards to be backed by your account.
Although it is possible to be accepted for a loan with a non-traditional credit history, lenders are more likely to lend to individuals who have standard credit histories. You will want to talk with your lending institution about whether they will accept a non-traditional credit history. If they don't it would be better to develop a good credit score by having positive and responsible spending habits.
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