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I Need A Loan But I Have No Credit Or Bank Account, Can You Help?

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Sarah Devine answered
It can be very difficult to get a loan if you have no credit history or even a bank account. Indeed how can you ask for credit if the banks and loan companies cannot even do a credit search on you? The best way to deal with this is to understand what the banks are looking for when they give an individual a bank loan.

A lender will usually look at your credit history and other factors to determine how much of a ‘risk’ you would prove if they were to lend you money. If you have never had a credit card however, there are other things a bank can look at.

They may choose look at your bank account to gain an insight into your account history. If you do not have one, open one today and have your salary paid into it. Lenders can look at how much you pay in each month and if you have ever gone overdrawn.  They may also look at your employment history to determine whether you are able to hold down a steady job. In the same way, having a more stable residence history may also work in your favor when applying for credit.

Without a credit history, lenders can look at any utility bill accounts held in your name. They can use these to determine how likely you are to make your repayments on time.

Another way you can increase your credit score is by opening a store card for a large department store. Make sure you make regular repayments to show you are able to manage money well.

If you are still unable to get credit, why not contact the bank for a secured credit card? If you apply for a card for $500 you need to put a $500 deposit into the account before the bank will give you the credit. If you then fail to make the repayments, the bank can take the money they are owed from your deposit.

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