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How To Get a Secured Loan With No Credit History

How To Get a Secured Loan With No Credit History

If you have no credit history it that doesn’t mean you cannot get an unsecured loan.  While it easier for borrowers with good credit rating to find a secured loan, there are loans available for people with no credit.

Ask around for unsecured lenders

There are any lenders and banks that offer unsecured loans. Even credit card provides provide unsecured credit cards to people with zero history as long as you pass their eligibility requirement.

A bank is not the only institution that provides cost-effective unsecured loans.  Ask anyone you know who has purchased a home recently and get referrals from them to find the lender that you can trust. Look into the interest rates, late fees and fines and additional charges and compare them with other lenders.

Start building a good credit

You can get a new card and start paying it off responsibly.  Whether you pay it on time or not, your financial decisions have a major impact on your credit worthiness in the near, develop healthy financial habits that will help you create a good payment history you can be proud of. You can do this by always paying your monthly dues on time, paying the balance in full and not just interest and checking your annual credit report to see if there are some wrong entries.

If you like keep more money in your pocket by paying less interest when paying for major purchases like an auto loan, strive to build a good credit score. You are more likely you are to get a lower interest rate if your credit rating is high. Let’s say you want to get a new credit card. Your good credit score could get you a 2% interest rate, while you may have to pay 4% interest rate on a loan if you have a low credit score.  If the cost of your debt is $1,000, you’ll end up paying $200 more over the same loan, with a bad credit.

No credit history means you have no debts, but you need the right amount of debt to build your credit score. You have a better potential for negotiating interest rates and loan terms with a high credit score. You can also get more miles or points with using your credit card. You also have easier access to better credit, loan terms and perks.

Most of all, shifting from no credit history to having a good credit history proves to creditors that make smart financial decisions for your best interests. And, you are no scared of getting into credit because you are in control of your finances.

As you get older, stress over finances may become a part of your daily life. That’s why a good credit score is essential in ensuring that you will not fall into a financial sinkhole and you can get the best credit deals in the market when you need it most.

If eventually you end up having a poor credit score, Clean Credit can help you improve it.

Contact Clean Credit today to learn more about how credit repair can help you achieve a good credit history.

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