We’ve all been there before.

You ran into an emergency that requires cash quick. Maybe your car suddenly broke down, you had a medical emergency, or you’re in need of travelling at the last minute. If you’ve planned ahead, these situations require you to dip into your emergency fund or you have to apply for a loan.

Unfortunately, most do not have a healthy savings account for such situations or the credit to get a loan.

Or do you?

When many get into these predicaments, their stress increases with the thought of having to scramble to find the funds quickly. This could mean having to sell some of your most prized possessions or even having to borrow money from multiple people. But what if you could get the funds easily without having to borrow money from loved ones or sell your possessions?

Believe it or not, there is a way to get a loan with poor credit or no credit. Take a look at these tips on how to get loans with no credit.

1. Building Credit

Do you have some time? Your best bet may be to take the time to build up your credit before you dive into a quick fix. You’d be surprised at what could positively affect your credit without having to apply for a loan or a line of credit.

Do you have an apartment? You can use a variety of programs to report on-time rental payments to the credit bureaus to help boost your credit. Your phone, cable, and electric bill also help boost your credit when you make on-time payments.

Taking the time to build your credit is the soundest way to be able to have the ability to get a loan quickly and easily without suffering the high fees and interest rates.

2. Credit Builder Loan

Keep in mind that this will not give you immediate cash, so if you do need cash right now, keep reading! This tip is for those that have no credit is to take advantage of a “tool” called a credit builder loan.

The way it works is you get a loan that is not given to you upfront. Instead, you receive a savings account of sorts that you make payments on. Make consecutive payments on time and you will inadvertently build credit off this loan.

After a period of time determined by the lender, you will be given an official loan or line of credit after you have made on-time monthly payments.

3. Credit Unions

For those that have little or no credit history, using a credit union may be an option. A fairly new program has been created by the National Credit Union Administration called a Payday Alternative Loan and offers small loans between $200 to $1,000 for terms that range from one to six months. This offers a regulated opportunity to get loans with no credit.

There are a few notes to keep in mind when applying for one of these loans, however. First, because these loans are used to build your credit, you could face some pretty high sign up fees as well as a maximum APR of 28%.

Also, make sure you ask the credit union you are applying at if they report on-time payments to all three credit bureaus. Some credit unions to do not report loan payments to all three agencies and if are looking to build your credit, then this type of loan may not be as beneficial as you’d hope.

4. Payday Loans

If you have no credit or poor credit and you need cash now, a payday loan may be an option, but do so with caution. Payday loans are a small loan that could potentially offer you cash on the spot.

Payday loans work in one of two ways: A lender will perform a simple credit check and will charge an interest rate based off your credit score, or you will have a flat fee due based on the amount you borrowed. The latter may also not require a credit check and will base the amount of money you may borrow off your past pay stubs. Be wary of this option and think twice before signing on the dotted line.

While it is a great way to get cash fast, you could spiral into debt very quickly and may be charged extremely high fees depending on your credit score. What’s more, if you do not pay these loans off within the timeframe required, you could face even harsher fees.

Loans With No Credit: Final Thoughts

loans with no creditNo matter the case, the best option is to try and prepare ahead of time by establishing a savings account filled with emergency funds as well as a healthy credit score so you can get a loan when you need one without dealing with high fees or high interest rates.

Don’t think you are in a serious pickle when times get tough, however. You have plenty of options and there are loans with no credit available.

The only thing that needs to be put at the utmost importance is that loans that are granted to you are paid in a timely manner. On-time payments build credit, after all.

Are you looking to apply for a loan right now? Look to Bonsai Finance to discuss your options to get a loan fast for those with no credit or poor credit. Contact us today to get more information or to start your application.