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Getting a Loan with No Credit History or No Credit History

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    Getting a Loan with No Credit History or No Credit History

    Understand your credit history before you attempt to get a loan. You usually need credit history to get a loan. What this means is you have have good history of borrowing and paying back loans. How can you get a loan if you do not have credit? You will have to start somewhere, and that means borrowing a lesser amount of money and having to pay more. As soon as you develop good credit history, loan providers will loan you more and offer you better rates.

    There is a huge difference between poor credit history and no credit history. Nevertheless, they both help to make having loans with the cheapest rates tricky. In case you have no credit score because you have not obtained loan or any type of credit before, you may have challenge to get a loan.

    Have a look through your credit score to understand what financial institutions will notice when you ask for a loan. Do you look like a good borrower? If there is very little in there, you may will need to build credit history by gradually adding loans to your own history. Make sure to correct any mistakes in your credit records, as it will ruin your possibilities of getting a good loan.
    Life always offers you a second chance. It's called tomorrow.


    #2
    Credit worthiness is a very important quality most borrowers seek to maintain. It is a product of credit history. A pleasant credit history implies a good credit rating, hence, an excellent credit worthiness.
    Most small and medium term businesses run on overdraft and outright short-term loan from deposit money banks.
    A business with poor history of meeting loan and overdraft obligations would find it very difficult to obtain credit facility from any financial institution at all. Credit history or credit ratings is like one's reputation. A person who has a soiled reputation would always have integrity issues with anybody they deal with. No body wants to deal with a prospective debtor without getting his debtor history records straight.

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      #3
      Having a good credit history is an important prerequisite for obtaing loan from lenders. Both corpotate and individual lenders would want get their prospective borrowers previous records with them and other lenders. Commercial banks are often lenders to most businesses in any economy, and they all seek to avoid bad-debt and non-performing loans.
      They would usually do a thorough credit-ratings analysis of their prospective borrowers to know how safe it is to give funds to them.
      The analysis is usually done with information obtained from past dealings of their prospective borrowers with their previous lenders in trade and otherwise.
      A borrower who has been declared bankrupt at a time would not be eligible for any credit facility.

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