How to Get an Online Payday Loan at the Age of 18 with No Credit History?

By Eliza Payday Loans 0 Comments

Trying to get an online payday loan at a young age can be really tricky.

At the age of 18, you have little or no credit history, making it difficult for lenders to approve your loan request. A short-term loan for an 18-year-old is an ideal way to start building your credit history over a short time.

An instant payday loan with no credit history can be a good option for an 18-year-old, provided you have a job. With this, the short repayment timeframe and the security of an auto-draft will make up for your lack of borrowing credentials.

That being said, today’s post will break down all the necessary steps on how to get an online payday loan at the age of 18 and with no credit history.

No Credit Score? Why?

Ordinarily, only people above the age of 18 have a credit score.

However, as you can see, a vast majority of 18-year-olds have credit invisibility, meaning that they have no credit history established. This presents a significant problem when financing any large, expensive item, rent, or purchase.

One of the possible reasons that an 18-year-old might not have a credit score could be that until you’re aged 18, you cannot be considered an adult to start developing your credit score.

Also, most parents don’t add their children as authorized users to one or more of their credit cards as this would help boost or establish a positive credit history and empower them for big purchases later in life.

Without a credit history or guarantor, young adults can employ a five-component strategy to advance their unsecured instant payday loan approval odds:

Make the requested amount for the cash advance loan minimum.
Keep the repayment terms short (30 days or less would be advisable).
Work through a vast network of online subprime lenders. These types of lenders offer loans to individuals who do not qualify for loans by traditional lenders.
Include your employer’s name and phone number for income verification, if there are any.
Provide bank account and routing number for easy drafting.
Payment of your short-term loan on time is essential.

Do these and watch your power to borrow increase!

Should I Get an Instant Payday Loan with a No Credit History?

Getting an online payday loan without having a bad credit history is very much possible, but you may be hit with higher-than-normal interest rates and unfavorable loan terms.

Although you can get a personal loan with no credit history, lenders will likely charge you higher interest rates than they would if your credit history was present and good. To prove you are creditworthy without a credit history, consider going for lenders that recognize other factors such as your employment history, income, bank account balances.

Options to Apply for an Online Payday Loan

According to the government’s Consumer Financial Protection Bureau (CFPB), to measure up for a cash advance loan, most payday lenders only expect that you (the borrower):

Be at least 18 years
Have an active checking account
Provide some convincing evidence of income as well as some valid identification

How to Build a Credit History?

Whether you want to improve your credit score from good to outstanding, or you’re trying to lift your poor credit score to an acceptable range, there are plenty of things to do, some of which include:

One way to add payment or credit history to your report is to ask someone who has a good Christmas history to add you as an authorized user on their credit card. If added as an authorized user and their positive payment history to your credit report, it would increase your credit report.
Get a secured credit card instead if you want to be responsible for your credit card. The amount you deposit becomes your credit limit. Since you make regular deposits, the lender is more likely to sanction your application if you have a minimal credit history.
One most effective and successful way is to make payments on time. It is vital always to pay your bills on time. This means paying all of your bills, not just your credit accounts, on time each month. If you fail to pay your bills early, you risk a company reporting a late payment, as this can negatively affect your score.
If you get a loan, be it a student loan or personal loan, or car loan, try as much as possible to repay it on time. This can help you build your credit history. Since you’re building your credit history, it is advisable to take out a credit builder loan as this loan is specifically designed to help you build your credit.

Building a good credit history will help establish and empower you to borrow for big purchases later in life.

A good credit score can help you save a lot of money in interest and fees, but when you first become an adult, you may have minimal or no credit history. This could mean that you’ll have trouble qualifying for a loan without a co-signer.

To measure up for a loan by yourself or better your chances of getting lower interest rates, you should take some time and learn how to build your credit score, even at the age of 18.

Once you possess a good credit score, you can maintain or improve your credit history. The higher your credit score, the more likely you will be approved for a short-term loan at the best rates and most favorable terms.

Get an Instant Payday Loan with No Credit History

Getting an instant payday loan is done in just a few steps…

You just have to complete the quick and fast loan application on our website and provide some personal information about yourself.

The next step involves choosing the amount you need and then paying the loan.

After filling your form online, you’ll receive instant approval on your loan application, provided you meet all the below basic requirements. Your funds will then be disbursed within 24 hours from the time of your application.

The primary requirements for an online payday loan include:

An up-to-date federal or state identification. This also requires proof of your current place of residence
Proof of employment status
A bank (checking) account
Social Security Number

Conclusion

Obtaining a cash advance loan can be more challenging for an 18-year-old with no credit history.

To help reduce lender uncertainty, especially when you’re trying to build your credit score as an 18-year-old, you must try to repay your cash advance loan in a short time.

It’s important to understand that online payday lenders only use the strictest terms and interest rates for new customers as a means of guaranteeing financial strength. It’ll be best if you could start with smaller loan amounts and scale up with time; this is safer!