The Best Personal Loans for People With No Credit History

Secured Loans

Secured installment loans are usually easy to qualify for because there is no risk for the bank. You guarantee the loan by depositing money into a savings account held for collateral. Then you build your credit by making on-time monthly payments.

Co-Signed Loans

You can qualify for a loan if you have a co-signer with excellent credit. Privacy Rights Clearinghouse, a nonprofit consumer information company, reports that credit scores range from 300 to 850, with scores above 760 representing the best credit. Finding a co-signer, such as a parent or other relative, with a high credit score could make approval easy on your loan. However, the co-signer will be responsible for the loan if you default.

Subprime Loans

The state of New Jersey reports that so-called "subprime loans" are often available for people with "incomplete credit histories" -- such as someone seeking credit for the first time. Subprime lenders are typically finance companies comfortable with lending to bad-credit borrowers or to people seeking a loan for the first time. Some banks and credit unions also offer subprime loans, according to the Bankrate.com website. One drawback: The loans generally feature higher interest rates than traditional loans.