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How To Get A First-Time Loan At 18 With No Credit History?

Last modified: Sep 29, 2022

It can be challenging to get your first loan when you need it most; it's even harder if you don't have a credit history. Luckily, there are ways to get around this and get the money you need! This article will tell you how to get a first-time loan at 18 with no credit history. 

Let's jump right in! 

Loans for 18-Year-Olds With No Credit History

It's not impossible to get first-time personal loans with no credit history, but it may be more complicated than if you had some credit established

Here are a few things to keep in mind when seeking a loan with no credit history:

With Cosigner

One option for how to get a loan at 18 with no credit history is to find a cosigner. A cosigner will essentially be your "guarantor" (someone who agrees to take full responsibility for the loan if you default or can't make payments). Usually, co-signers are family members or close friends, but they can also be acquaintances or even strangers.

Without Cosigner

If you don't have a cosigner, you may still be able to get a loan, but you'll likely need to provide collateral. This is something of value (like a car or piece of property) that the lender can seize if you default on the loan. Providing collateral can increase your chances of being approved, but keep in mind that you could lose the asset if you can't repay the loan


If you're unemployed, you may still be able to get a loan, but you'll likely need to provide some form of income verification. This could include bank statements, tax returns, or pay stubs. The lender will want to see that you have the ability to repay the loan even if you don't have a traditional job.  

Show Your Savings 

If you don't have any credit history, lenders may be more inclined to give you a loan if you can show them that you have some savings like a health savings account or life insurance for college savings.   

This shows that you can manage your finances and make regular payments. You could also get a secured credit card, which is backed by a deposit you make upfront. This can help you build up your credit history over time so that it's easier to get loans in the future. 

Offer Deposit

Another option is to offer a deposit to the lender. This is basically like collateral, but it's returned to you once you've repaid the loan. Keep in mind that not all lenders will accept this type of arrangement, so it's important to ask before applying.    

Ask for a Lower Amount

If you want to get a loan but don't have the income or assets to qualify, you may be able to ask for a lower amount. This can help ensure that your payments are manageable and still allow you to meet your financial obligations. Just make sure you're honest with the lender about your ability to repay the loan, as they will likely check up on this during the application process.  

Secured Loan 

If you have a valuable asset that you can use as collateral, you may be able to apply for a secured loan. This is the same as offering a deposit—the lender will keep your asset until the loan is repaid. Keep in mind that if you fail to repay the loan, you could lose whatever collateral you put up.    

Types of Loans Without Credit History

If you need to borrow money but don’t have a credit history, several types of loans may be available to you. When it’s time to apply for a loan, knowing what these loans are and how they differ can help you make an informed choice.   

Car Loan 

More than 30% of all new vehicle transactions in the US are leased. A car loan is a collateralized loan, which means that the car you are buying acts as collateral for the loan. If you default on the loan, the lender can seize the car and sell it to recoup their losses. Because of this, car loans typically have lower interest rates and more favorable repayment terms than other types of loans.  

Student Loan

Approximately $1.5 trillion is owed in student loan debt across the US.These loans are specifically intended to help people pay for their education and cover the costs of attending school, including tuition and living expenses. Student loans typically have low-interest rates and allow borrowers to defer repayment if they are still in school, at least part-time, making them a popular choice among those who don’t have a credit history

Payday Loan

A payday loan is a short-term loan that is typically due on the borrower’s next payday. These loans are often used by people who need quick cash to cover unexpected expenses or bridge a financial gap until their next paycheck arrives. Payday loans typically have high-interest rates and fees, making them difficult to repay.   

Title Loan 

A car title loan is the most prevalent type of title loan. In this situation, the possible borrower must own a car outright and sign over the title to an auto loan title firm. The lending firm will give the borrower up to 25% of the vehicle’s total value and hold the title as collateral in case of default.   

Bottom Line

You probably came over here to learn how to get a first-time loan at 18 with no credit history; luckily, this article tells you everything you need to know.  

There are different ways to build your credit score. By following our steps, you can be on your way to securing the financing you need for college or any other major life event. 


Can I get a student loan without a cosigner?

Most lenders prefer to have a cosigner on a student loan because it reduces their risk if you cannot repay the loan. But, you may consider applying for a private student loan if you don't have a cosigner. Private student loans typically have higher interest rates than federal student loans, but they also offer more flexibility in terms of eligibility and repayment options. 

How do I get a car at 18? 

Most rental agencies require you to be at least 21-years-old to rent a car, and many car dealerships won't allow you to finance a vehicle unless you're at least 18-years-old with a steady income.

There are a few ways that 18-year-olds can get cars, but it may take some creative thinking. You could ask an older family member or friend to cosign on a loan with you, look into leasing options, or try financing through a credit union or online lender. 

How to get a first-time loan at 18 with no credit history?

Look for lenders that specifically offer loans for people with no credit history. You can also get a cosigner with good credit to help you secure the loan. Finally, you could try using collateral. Whichever route you choose, shop around for the best rates and terms.

Policy Advice is a website devoted to helping everyday people make, save, and grow money. While our team is comprised of personal finance pros with various areas of expertise, nothing can replace professional financial, tax, or legal advice.

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