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How to Get Loans & Credit Cards Without a Credit Score? The 3 Alternatives

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July 26, 2023


What’s Inside

When it comes to obtaining loans or credit cards, many people believe that their credit score is the sole determining factor. While credit scores do play a significant role, you’ll be surprised to know that they are not the only way to secure financial assistance. Here are the 3 alternate ways to get a loan or credit card.

Alternative Ways to Get Loans & Credit Cards

1. Secured Loans and Credit Cards

Credit scores might not be a concern when applying for secured loans or credit cards. With secured options, borrowers provide collateral, such as a savings deposit or an asset, as security for the lender. By offering this collateral, individuals demonstrate their commitment to repay the borrowed amount. This makes lenders more willing to approve the loan, even if the applicant has a less-than-stellar credit score. Secured loans and credit cards are an excellent opportunity for those looking to rebuild or establish credit.

2. Co-Signers and Joint Applications

If your credit score is not strong enough to qualify for a loan or credit card, consider having a co-signer or applying jointly with someone who has a better credit history. Co-signers, typically a trusted family member or friend, are responsible for the debt if the primary borrower fails to repay. By having a co-signer, lenders feel more secure about the loan's repayment and are more likely to approve the application, even if the primary applicant's credit score is less favourable.

3. Credit Unions and Non-Banking Financial Companies

Credit unions and non-banking financial companies (NBFCs) often take a more personalised approach to lending. They may consider factors beyond just credit scores when evaluating loan and credit card applications. Building a relationship with a local credit union or an NBFC can be advantageous, as they may consider your overall financial health, employment history, and personal circumstances. These institutions might be more lenient, especially if you have a good track record with them.

In Summation

While credit scores are crucial in the world of loans and credit cards, they are not the only deciding factor. By exploring alternative options like secured loans, co-signers, and NBFCs, individuals with less-than-ideal credit scores can still access the financial assistance they need. Remember, financial institutions are increasingly recognising the importance of looking beyond numbers and considering the bigger picture of an applicant's financial health. So, don't be discouraged by your credit score; explore these alternatives to get loans and credit cards.

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Frequently Asked Questions 

1. What are the alternatives to using a credit score when applying for loans or credit cards?

Popular alternatives to using a credit score when applying for loans or credit cards include secured loans or credit cards with collateral, having a co-signer or applying jointly, and seeking credit unions or NBFCs that consider various factors beyond credit scores.

2. Can I qualify for a loan or credit card without a credit score? If so, what are the requirements or criteria for eligibility?

Yes, it is possible to qualify without a credit score. Certain secured loans or credit cards may accept collateral instead of a credit score. Credit unions and community banks might also consider factors beyond credit scores. To qualify without a credit score, having a co-signer or joint applicant can enhance approval chances. Credit unions may assess overall financial health, employment history, and relationships with the institution.

3. How do lenders assess creditworthiness in the absence of a credit score, and what additional documents or information might be required?

In the absence of a credit score, lenders may consider alternative factors like payment history for rent and utility bills, employment stability, income level, and existing relationships with the institution. Lenders may request documents such as bank statements, proof of income, employment verification, rental payment history, and character references to evaluate creditworthiness without relying on a credit score.

4. How can I build a strong case for creditworthiness using alternative methods if I don't have an established credit history or score?

You can start by obtaining a secured credit card or loan, using collateral as security. You can also consider having a co-signer or applying jointly with someone who has a good credit history. Make timely payments and maintain low credit utilisation. Pay bills like rent and utilities on time, as some lenders consider these payment histories. Additionally, establish a steady income and maintain a stable employment record to showcase financial stability. 


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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