As one may be aware, the majority of loan lenders offer loans to all adults, which means those individuals who are 18 years of age or older, as do direct lenders. However, most traditional loan lenders do not offer loans to those who do not have credit histories at all or have bad credit. In order to get a loan, one must be at least 18 years of age at the minimum which means that most 18-year-olds do not have credit ratings since when they turn 18, it should, in most likelihood, be the first time they are applying for a loan. If they haven’t taken out a loan previously, they obviously do not have a credit score.
But if not with traditional lenders, these 18-year-olds have to start somewhere, right? That’s when direct loan lenders come into the picture.
Direct loan lenders offering payday loans do not consider one’s credit score in order to fund them. Credit checks are time-consuming procedures that can also possibly reduce the credit rating of a borrower. That’s not something direct loan lenders want to rely on since one major advantage of taking a loan from them is that they transfer funds quickly. Instead of depending on credit ratings in order to fund their borrowers, they depend on whether their borrower has a stable monthly income or not.
What are the types of loans that are offered to 18-year old?
Several types of loans for 18-year-olds with no credit are available. Eligibility may vary based on factors such as income, credit history, and the type of loan. Here are some common types of loans that individuals of this age may consider:
- Student Loans: Federal Student Loans: A student loan is an option for those seeking higher education, including colleges, universities, trade schools, and vocational institutions. Unlike certain loans, it doesn’t require a pre-existing credit history. Yet, eligibility is based on current enrollment as a student.
- Personal Loans: Personal loans can be used for various purposes, such as car repairs, medical expenses, or other personal needs. They may be obtained from banks, credit unions, or online lenders.
- Credit Builder Loans: Designed to help individuals build or improve their credit history, credit builder loans are often offered by credit unions. The borrowed amount is held in a savings account and released after the loan is repaid.
- Secured Loans: Secured loans need collateral, such as a car or savings account. If the borrower fails to repay, the lender can take possession of the collateral.
- Co-signed loan: A co-signer is an individual with a positive credit history who commits to assuming responsibility for the loan in case you are unable to make the payments. This action diminishes the lender’s risk and could enhance the likelihood of your loan approval.
It’s important for individuals, especially those at a young age, to consider the terms and conditions of any loan. Being responsible when borrowing and understanding the implications of taking on debt are crucial aspects of managing your finances. Additionally, building a good credit history early on can open up more favorable loan options in the future.
If you have a stable monthly income, getting a loan without a credit score can be very easy. Approach a direct loan lender. They will then offer funds depending on how much one earns on a monthly basis since payday loans are meant to be repaid once a borrower receives their next salary.
Yes. When it comes to payday loans, a borrower can receive them even if they are 18 years of age. That isn’t a factor that direct loan lenders consider when offering loans to borrowers.
Along with being 18 years of age and having a stable source of income, a borrower should be a citizen of the United States, have a checking account, and provide their direct loan lender with valid contact details.
Once the criteria mentioned above are fulfilled, it is very easy to get personal loans for 18-year-olds as well as a payday loan.