If you have no credit, the single most important thing you can do is to start building it now. A loan, even from a lender willing to work with no credit, won’t do you much good if they don’t report to the credit bureaus. It may solve your immediate financial problem but it won’t improve your long-term circumstances. That’s why it is essential that you find online personal loans with no credit and they report to credit bureaus when you need access to money.
Still, this is easier said than done. Every lender always says they’re the best on the market, but how do you know that for a fact? How do you find a lender who will not only offer you a great loan but also report your loan to the credit bureaus?
Below are seven tried and true methods that we know will make your search much simpler.
1. Use More Specific Search Terms
In this day and age, the simplest way to find the information you need is to search for it online. The issue isn’t finding information; it’s finding information that’s useful. When I searched for online loans that would report my credit, Google returned over 78 million results. That’s way more information that you can feasibly screen through.
In order to get better results, you need to be more specific with your search. Adding some additional keywords will help you return better search results. Some criteria you could use include:
- Adding your home city to your search
- Specifying the loan amount you need
- Adding how soon you need the loan (with terms like, “within a month”)
- Specifying you don’t want to pay “advance fees”
2. Look for Quality in Reviews
When it comes to finding great lenders, reviews are an invaluable resource. Not only are they first-hand accounts of what it’s like to deal with a lender but they also address hidden issues. A great example is any hidden costs the lender may have.
But reviews can often be biased and unsubstantive. Our own instincts can actually cause us to rate something as either better or worse than it really is. According to the Massachusets Institue of Technology, factors such as our own herd instincts, bias via social influence, and the phenomenon of rating bubbles can cause reviews to skew up to 30%.
To help sort out what is useful, pay attention to these aspects in the reviews:
Thoroughness
When you’re reading a review, you don’t just want to know if a lender is good or bad. You want to know why they’re good or bad. You don’t have to worry about a review being well written and grammatically correct, but a quality review is more than, “They’re awesome!” or “Total scam! Run for the hills!”
Address Specific Points
A good review will also address specific points about a lender’s process. For example, if the lender advertises that they can get your loan approved within two weeks, but it’s actually closer to a month, a good review will address that. Other examples include points about the process, the costs associated, and the time the process takes.
Uncover Hidden Truths
Like I mentioned before, a quality review will address any hidden issues that you weren’t aware of. For example, a review might say something like, “They’ll keep your interest rate low, but they charge a ton in processing fees!” That may not be something you’d even considered, but it’s critical information.
3. Get First-Hand Accounts
Even if you find quality reviews that address most of your concerns, you’ll still have plenty of questions you need to have answered. Reviews don’t usually cover everything. Once you’ve found those quality reviews, reach out to the author, if you can. Be polite, explain that you’re considering this lender, and see if they mind answering some questions.
Obviously, you need to be careful if you’re going to use this tactic. Don’t give out any personal information, such as your home address or credit information, when you’re asking your questions.
4. Screen the Lender’s Site Carefully
Any lender of substance is going to have a website that you can browse. The trick is sorting through the sales language designed to get you to take out a loan.
Check their disclaimers and privacy disclosures. These will tell you a lot about how they use your information, including if your loan will be reported to the credit bureau. They will also tell you whether the rates they advertise are accurate or estimates only. Disclaimers can be a tough read because they’re so long and filled with legal terms but read every paragraph carefully.
Another great resource that many websites maintain is an FAQ list. These answer many of the most common questions that shoppers have about the lender’s service. If you still haven’t found what you’re looking for, send the lender an email with your question.
5. Validate a Lender’s Credibility
While many lenders dabble in different types of loans, great ones focus on a specific niche. In your case, your best bet will probably be a lender who specializes in no credit loans.
Lenders who specialize in a particular loan type are much more prone to offer you the best deals. They also have the expertise you need to both get your money and raise your credit score. You should ask lenders questions like:
- What is your area of focus?
- How long have you been working with these types of loans?
- Have you received any industry awards or recognition?
- What makes you better than your competitors?
- Will you report my score to the credit bureau?
6. Compare Lenders
No matter what else you do, if you don’t take the time to compare different lending options, you’ll never find the best deal. Once you’ve got a few lending quotes, study the loan limits, APRs, fees, and repayment timelines for each. Which of these factors matters most will depend on your own circumstances.
Once you’ve done a thorough comparison, you can consider negotiating with lenders for a better offer. If you prefer Lender A, but they have a higher interest rate than Lender B, tell them so. Lender A may very well be willing to lower the interest rate to secure your business.