Have a bad credit history or no credit whatsoever? Here is how getting a loan with no credit is right at your finger tips.

Getting a loan when your credit score is less than amazing can prove difficult. Big banks are notorious for having stringent requirements that you must meet before they’ll loan out any money.

The trouble is, about 1 in 3 Americans fall into the “bad credit” (less than 601) or “no credit” category. So what do you do when you need extra cash for an emergency?

The good news is that getting a loan with no credit is not impossible. Even if you have bad credit, you still have options.

Let’s take a look.

Credit Unions

Big banks are very stuck on your credit score. And even if they are willing to loan you money, you could be looking at interest rates up in the 35% range! That’s quite an expensive loan option.

A better idea is to check with local credit unions. To join some credit unions you may have to be affiliated with another entity. For example, you can apply to a credit union associated with your employer, community, or groups like the military if you qualify.

Because of their sign-up restrictions, credit unions tend to be smaller and work more like local community banks. This makes them more willing to work with people who have bad credit on a more personal level.

The best part about credit unions is the cap on their interest. You’ll never have to worry about paying more than 18% on a loan from a credit union.

Payday Loans

Payday loans can be a good way to get money when you need it fast. Payday loans are quick to close and many, like the ones from Bonsai Finance, don’t require a credit check.

Loan amounts are typically smaller and they have short repayment periods, hence the name. The idea of a payday loan is that you can get the cash you need right now. Then pay it back the next time payday rolls around.

Interest rates can be high, but if the repayment period is short you won’t pay an exaggerated amount. Make sure you can pay it back comfortably in the repayment period. You don’t want to damage your credit score even more by not making your payments on time.

Ask Someone to Co-Sign

Even if you qualify for a loan with bad credit, the terms may not be the most favorable. There’s a trick you can use to “raise” your credit score enough to qualify for better loan terms.

Do you have a friend or family member with a good score that would be willing to co-sign with you? You can use their good score as your qualifier since they are saying they will pay the lender if you don’t.

However, be sure that you can really pay back the loan. Your friend or family member might get upset if they end up having to pay your loan for you. Many relationships have been ruined over money issues. Don’t let yours be one of them.

Friend or Family Member Loan

You may also be able to go directly to your friend or family member. Of course, they would need to have sufficient funds available to lend you.

Friend or family member loans can be very inexpensive depending on the terms they are willing to agree to. The loan may be free or offered at a very low interest rate.

Again, don’t abuse the trust they’re placing in you. Pay your loan back on time as you have promised. Just because this loan won’t affect your credit score doesn’t mean you should take it any less seriously.

It’s also a good idea to have the loan terms in writing. That way there’s no confusion and less opportunity for things to go sour.

Home Equity Loan

Another excellent way to qualify for better loan terms is to offer something of value as collateral. If you own a home, one of the easiest ways of doing this is with a home equity loan.

Since you offer your home as collateral, you can typically qualify for more favorable terms. You can also borrow more money than some of these other options that we’ve mentioned.

Be wary, though. If you don’t pay the loan back, your house is on the line.

A Secured Loan

What if you don’t have a house to use as collateral? Is there another option?

In that case, you can apply for a secured loan instead of a home equity one. You can use various items for collateral for this type of loan. Property, a boat, or a car are popular options.

You can even use stocks or a savings account that you don’t want to liquidate. Although, be careful with this option. It may make more sense to liquidate those assets without taking on the expense of a loan.

Online Loans

How does loan shopping from the comfort of your home sound? You can do that now as long as you have a computer and an Internet connection.

You can think of online lenders as banks without offices. They tend to have less overhead and thus offer more favorable terms. It is also easier to qualify for a loan without a fantastic credit score.

Another advantage of this type of loan is speed. Online loans are typically approved and funded quite fast.

Ready to Work on Getting a Loan With No Credit?

You may not have realized it, but there are plenty of options for getting a loan with no credit. The next time you have an emergency and need some cash, try checking out some of these ideas.

If you want to learn how to build credit in the meantime, check out this article.