How to Get a Loan at 18 with No Credit History?

How to Get a Loan at 18 with No Credit History?


10 Min Read

When you’re 18 and ready to take on the world, there are many things you might be excited about: getting your first job, going to college, finding ways to make extra money, and buying a car. But when it comes to taking out a loan, you might be nervous. After all, who wants to have debt hanging over their head at such a critical time in life?

Getting a loan at 18 years old can be difficult because of your non-existing credit history. Therefore, knowing your options and what you should consider before starting the process is essential. Continue reading and find out how to get a loan at 18.

Can I Get a Loan at 18?

Yes, you can get a loan at 18. However, you will need to be very careful about the type of loan you take out. It is essential to understand what you are signing up for and what your repayment obligations will be.

You should only get a small loan if it is necessary. You have options such as credit cards, small payday loans, or even your savings in your bank account, if possible so that you do not have to take on too much debt at once.

Pros and Cons of Getting a Payday Loan at 18

A simple payday cash loan can be pretty beneficial if done correctly. Here are six pros and three cons to consider when deciding whether or not taking out a loan at 18 is right for you:


  • It has a quick loan application process.
  • It is easy to get it within a business day in your checking account.
  • It won’t affect your starting credit score if you pay the loan responsibly.
  • You can cover emergency living expenses.
  • You can buy something you want.
  • You don’t have to wait days or weeks to receive loan approval from a direct lender.
  • You have a short-term obligation, not long-term problems with debts.


  • Interest rates may rise between now and then—and those higher rates will add up over time!
  • You get into a debt cycle within several months if you borrow more than two loans in a row.
  • Credit approval odds might be based on personal finance and income verification.
can i get a loan at 18

Loans for 18-Year-Olds – Check Your Options

There are several loans that you can get at this age. The type of loan from a direct lender that you qualify for depends on your income level, credit history, and other factors. But first, discover your options:

A credit card loan from your current bank or credit union

Credit cards can help you get cash quickly if you don’t have any other options available to you right now. However, sometimes they come with high-interest rates as well. If you can’t repay your debts on time, avoid using a secured credit card or bank loan because you’ll be charged late payment fees. Plus, the majority of traditional bank loans might require a down payment.

Small-dollar unsecured payday loan

A small-dollar unsecured payday loan is a short-term loan that you can take out to cover unexpected expenses, like an emergency car repair or an unexpected medical bill. The money can be used for almost anything. It’s not just intended for paying off student credit card bills or other debts.

You can apply for a small-dollar unsecured payday loan online and get approved in minutes. Payday loans for students typically come due after your next paycheck, so you won’t have to worry about paying them back until then. And if you need more time, it’s easy to roll over the payday loans into another one if you still haven’t paid it off by then.

Cosigner loan

A cosigner loan is a loan that allows you to borrow money from an institution, like a bank or credit union, if it’s backed by someone else. The person who guarantees a personal loan is known as the cosigner. These types of (first-time) personal loans are also suitable not only for young adults with bad credit scores but also for debt consolidation.

Cosigning for a personal loan is a way to get lower interest rates and better terms than you would get with a no cosigner loan. The cosigner agrees to be responsible for repaying the secured loan debt if something happens to you, like if you become disabled or lose your job. It means that if things go wrong with the personal loan, it’s not just your credit history that suffers. It’s also the cosigner’s credit score.

Car loans

Car loans for 18 olds are used to finance the purchase of new or used vehicles by young adults. The most common age to take out a first-time loan is between 18 and 25.

The first step in obtaining a car loan is choosing which lender to use. Many lenders offer young adults financing options, such as banks, credit unions, and car loan lenders. You’ll want to compare rates and terms before deciding on one that works best for your needs and make sure your parents approve it. But take care; most lenders might require a down payment.

Credit-builder loans

Credit-builder loans are designed to help you build a credit history. If you’re under 18 and don’t have much of a credit history, or if you’ve had trouble making payments on past loans, credit-builder loans can help get your financial life back on track.

If you’re an 18-year-old who wants to get their first credit card or car loan, it can be hard to prove that you’re responsible enough to handle paying off a loan. That’s where credit-builder loans come in: they allow young people to build up their credit history while they learn how to manage money and make sound financial decisions.

A federal student loan / private student loan

Federal student loans are loans that are made by the federal government, and they’re available to students who need them. These federal government loans are generally easier to get than other types of loans and have more flexible repayment options.

Private student loans are loans that you take out in order to pay for your education. They can be used to pay for tuition, books, room and board, transportation costs, and other expenses related to your education.

getting a loan at 18

What Credit Score Do I Have When I Turn 18?

When you turn 18, your credit history will begin to be reported to the three major credit bureaus: Experian, TransUnion, and Equifax. Your credit history will be based on the information obtained from public records. However, you won’t have any credit score because you didn’t have any loans on your limited credit history. Or you can have a bad credit score after the first loan you didn’t repay on time.

Several models determine borrowers’ credit reports, but it’s essential to know that there’s no “perfect” score. Of course, the higher your score is, the better, but even with a near-perfect score, you may still have trouble getting approved for certain loans or credit cards.

What’s a good score? That depends on what kind of loan or credit card you’re looking for. For example, a good credit score for an auto loan is typically 680 or above; a good score for a mortgage might be 720 or higher; and a good score for an unsecured loan could be anywhere from 600 to 680. But a 500 credit score may be a problem for those lenders who are looking for good credit ratings.

Eligibility Criteria to Meet When You Borrow Money at 18

The eligibility criteria to meet when you borrow extra cash at 18 will vary depending on the loan you are applying for. Still, some general guidelines will apply no matter what.

  • First and foremost, you must be 18 years old or older. If you’re under 18, your parents may be able to co-sign for a loan for you.
  • You should also have some sort of steady income. It can be from employment or other sources like scholarships or grants.
  • You’ll also need proof of regular income to show that you can afford monthly payments on any loans for 18-year-olds you take out. This may include bank statements, tax returns, or pay stubs. The higher your income, the better for you.

How to Get Low Rates as an 18-Year-Old Borrower?

If you’re a young adult considering buying a car or taking out a student loan, you may have noticed that lenders sometimes charge higher interest rates to those under 25. They believe younger borrowers are less likely to repay what they borrow.

But don’t worry! There are still ways to get lower interest rates as an 18-year-old borrower. You just need to know what questions to ask! Here are our top tips for getting low rates as an 18-year-old borrower:

  1. Don’t be afraid to ask for help. If you’re unsure if you qualify for a specific type of loan, don’t hesitate to ask your financial advisor or lender about it! They want their customers to be happy and will do their best to help you find the right loan for your needs.
  2. Shop for the best loan deal before applying for one online or over the phone with a bank representative. This way, you can compare offers and determine which offers the lowest interest rate and favorable terms overall before making any commitments.
  3. Know what kind of credit reports lenders look at when determining whether or not they’ll give loan products to someone like you. Different lenders have different credit score loan requirements. Find a lender that performs only a soft credit check that won’t affect your credit score. For example, such lenders have some loan approval odds for bad credit loan applicants because there is always a risk in lending to such borrowers.

Frequently Asked Questions

Where can I get a loan at 18?

You can apply through our website if you want a loan at 18. Our lenders have the best loans that can help you get the money you need, no matter your credit score.

Can I get a student loan without a cosigner?

Yes! You can get a student loan without a cosigner. A cosigner agrees to take on the responsibility of making payments on your loan if you cannot. A student loan with a cosigner means the lender will only give you the cash loan if your cosigner agrees to take on that responsibility.

How do I get a car at 18?

You can get a car if you’re 18 and have a driver’s license and a valid credit card. You’ll need to go to your local dealership, where they will run your credit report to see if you qualify for financing. If so, you’ll be able to choose from all the different models of cars on sale.

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

First, you’re going to need to build up your credit history. The best way to do this is through student loans. Then, once you’ve established yourself as an adult with a stable income, it’s time to apply for your first mortgage or car loan.
You might also want to consider applying for credit cards with small limits. If you make all of your payments on time and pay off the balance in full each month, this will help establish a pattern of responsible spending that lenders love to see.

Get a loan as a 18-years-old even with no credit history!Apply

Kerry Vetter

Written by Kerry Vetter

Written by Kerry Vetter

Kerry is a finance expert thanks to her Boston College education during the 1990s. Today she shares this valuable knowledge through the pen and online from her home in Chestnut Hill, Massachusetts. The years of experience results in relevant, practical and wise advice.