Your credit score, whether it's good, bad, or you have no established credit, is what the majority of loan lenders look at when making the determination to give you a loan, or deny you. Having no credit means that you either haven't had any activity reported to the credit bureaus or that they have such little information on you that it isn't possible to give you a credit score. Having bad credit means that you either have a bad history of not paying your bills on time, you owe too much money or both.
Top Small Loan Lenders
When you are looking to get a small loan with no credit, being without a job, or both, it may make things more complicated and more stressful than you would like. Banks and most lenders will find it hard to trust someone with bad credit or without any established credit, and most, if not all of them prefer you to be employed in order to be able to have the means to pay them back, so finding yourself without a job, even temporarily, and trying to get a loan can seem like an insurmountable task. You can find on this website https://stlplaces.com/blog/best-personal-loans-in-st-louis-mo top online personal loan lenders. Even looking online where lenders seem abundant may not help if you have bad credit, and if you do find one that will lend to you they may charge you a ridiculous interest rate to pay it off. To prevent this from happening, here are some points of advice in order to build trust with a chosen lender in order to get a short term loan in the future.
If you have a steady job then you can search online for a federal credit union to get a payday alternative loan. These types of loans will help you to restore your bad credit and tend to have lower interest rates than most lending options. They are also short term and come in amounts ranging from $200 to $2,000, so they can be paid off more easily and be a great credit-building tool. Some credit unions offer these loans without performing credit checks. Fees associated with payday alternative loans are capped at $20, and interest rates are also capped, so you won't have to worry so much about getting scammed by some of the ridiculously higher interest rates you may run into, and they are short term.
Don't wait until you need the loan to start building your credit. Do your research online for a credit building credit card with a low limit. Make a purchase with it and then pay it off every month. This will help build credit over time.
Have a bank account and keep it in good standing with a positive account balance, and no overdrafts or negative amounts. Use it to deposit your employment in, especially if you are self-employed and don't have regular pay stubs from an employer. This will show that you have money coming in regularly.
Doing these basic things over time and making them habitual, can help you to prevent being turned down from any future lending you may need.
