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No Credit History and Need a Loan: Your Options With a Thin or Empty File

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Having no credit history is a different problem from having bad credit. A lender looking at a low score sees risk. A lender looking at an empty or thin file sees very little, and a lender that can't score you has less to base a yes on. The good news is that a thin file is the fastest kind of credit problem to fix, and a few lender types are set up to look past it. This page explains what counts as "no credit" to a scoring model, which lenders weigh income and other factors, and how to build a scoreable file in about six months.

Key takeaways

  • A FICO Score needs at least one account open six months or more and at least one account reported in the past six months.
  • The CFPB's 2025 estimate put 2.7% of adults (7.0 million people) with no credit record at all in December 2020.
  • Some lenders, such as Upstart, say their model considers education and employment as well as credit.
  • A cosigner, a credit union, or a loan secured by savings are the most common ways in. Each has trade-offs.

This guide sits under our hub on personal loans by credit score.

What does "no credit history" mean to a lender?

There are two versions of the problem.

No file. You have no record at any nationwide credit bureau. The CFPB calls this being "credit invisible." Its June 2025 correction to its earlier estimate found that 2.7% of adults, about 7.0 million people, were credit invisible in December 2020.

A file too thin to score. You have a record, but not enough on it. myFICO says that to produce a FICO Score, a report must have "at least one account opened for six months or more," "at least one account that has been reported to the credit bureau within the past six months," and no indication that you are deceased. One account can satisfy both. If you opened your first card three months ago, you may have a file and still have no FICO Score. The same CFPB update estimated that 9.8% of adults had a record too thin or stale to score in December 2020, a larger group than the credit invisible.

That difference matters because the fix is different. No file means opening a first account. A thin file can mean simply waiting until your first account turns six months old.

Thin file: which door to try first A four-step flow: check whether you have a FICO Score, then choose income-based lenders, a credit union or cosigner, or a credit-building product. Thin file: which door to try first 1. Do you have a FICO Score yet? Needs one account 6+ months old and recent reporting. 2. Yes, but a short history Try lenders that weigh income, education and job history. 3. No score at all Credit union, cosigner, or a loan secured by savings. 4. Not urgent Credit builder loan or secured card first, then apply.
Scoring thresholds from myFICO; options from CFPB and lender pages, all accessed October 1, 2026.

Which lenders consider more than a credit score?

Some lenders say directly that their decisions rely on more than the score.

Lender or optionWhat it says it considers or requiresPublished terms (as of October 1, 2026)
UpstartModel "considers additional variables like employment and education"; Upstart says neither it nor its lending partners have a minimum educational attainment requirement6.3% to 35.99% APR; $1,000 to $75,000; 3- or 5-year terms
Upgrade (joint application)Both applicants' credit profiles are considered; may help with "a bigger loan and/or a better rate"7.74% to 35.99% APR; $1,000 to $50,000
Federal credit union PAL IIRules set amount, term and fees; no minimum membership period in the PAL II ruleUp to $2,000; 1 to 12 months; application fee up to $20
Share or savings secured loanYour deposit is the collateralFirst Tech: savings rate plus 3.00%, from $500, up to 96 months

Upstart's own FAQ on poor credit says you "may still qualify," that approval "depends on your overall financial profile," and that "not all applicants will be approved." Treat that as the honest version of what any lender can say. No one can tell you in advance that a thin-file application will be approved.

If you file taxes with an ITIN rather than a Social Security number, the lender pool narrows further; see personal loans with an ITIN.

Representative example. For a $5,000 loan at a 10% APR over 36 months, the monthly repayment would be $161.34. Over the term, the total repayment would amount to $5,808.24, with $808.24 in interest. The loan terms range from 6 months to 12 years, with APRs between 5.99% and 35.99%. The exact rate you receive depends on factors like your creditworthiness, loan size, and repayment schedule. Better rates are typically offered to those with excellent credit.

Should you use a cosigner if you have no credit?

A cosigner or co-applicant with an established file gives the lender something to score. It is often the quickest route to a mainstream offer.

The cost lands on the other person. The FTC says a cosigner "may have to pay up to the full amount of the debt if the borrower does not pay," plus late fees or collection costs, and that "the creditor can collect this debt from you without first trying to collect from the borrower" (some states require the creditor to try the borrower first). The loan can also show up on the cosigner's report and limit their own borrowing. Our page on personal loans with a cosigner covers which lender types accept one and how to protect the relationship.

Before you ask someone to cosign. Put the monthly payment, the term and the total repayment in writing for them. If they couldn't comfortably cover the payment for several months, it's the wrong ask.

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How can you build a credit file in about six months?

Six months is the number that matters because of FICO's minimum scoring criteria. A plan that works within it:

Month 1: open one account that reports. The CFPB lists two main starter products. A secured credit card, where "you put in an amount of cash, for example $500," and spend up to that amount. And a credit builder loan, where the money "is held for you as savings" while you make small payments "usually over six to 24 months," then released to you. Ask the issuer whether it reports to the credit bureaus. The CFPB notes secured card fees and rates "can be high," so compare.

Months 1 to 6: pay on time, every time, and keep the balance low. Your first months of history are the whole file, so protect them.

Month 6 and after: check that you have a score. Once an account is six months old and reporting, a FICO Score can be generated. Pull your reports, confirm the account is there, and only then shop for a loan.

Don't apply for unsecured loans in the meantime. Each formal application is a hard inquiry, which the CFPB says can affect your score. A declined application on a thin file does nothing for you.

One caution from the CFPB's own research on credit builder loans: they "proved more effective for participants who entered the study without existing debt," and taking one on appeared to make it harder for some borrowers to keep up other loan payments. If you already carry debt, a secured card you pay off in full may be the gentler start. Our explainer on credit builder loans compares the two.

What if you also have some negative history?

A thin file with a collection or a late payment on it is a low-score problem, not a no-score problem. The 500 credit score guide covers secured loans, credit union PALs and the high-cost products to avoid at that end.

Who this is for

Young adults, recent arrivals to the US, people who have only ever used cash or debit, and anyone whose only accounts are newer than six months.

What to do next

If the need can wait, open one reporting account now and apply in six months. If it can't, start with a credit union or a savings-secured loan, then consider a cosigner.

Common questions

Can I get a personal loan with no credit history?

It's possible with some lenders, and Upstart says its model considers education and employment. Expect a smaller amount or a higher rate, and no approval is assured.

How long does it take to get a credit score?

A FICO Score needs at least one account open six months or more and reported within the past six months, per myFICO.

Is no credit better than bad credit?

They're different. No credit means the lender can't measure you; bad credit means it can and doesn't like what it sees. A thin file is usually faster to fix.

Does a secured credit card build credit?

It can, if the issuer reports to the credit bureaus. Ask before you open one. The CFPB lists secured cards as a way to start a credit history.

Will prequalifying with no credit hurt anything?

Soft inquiries, including prescreening, do not affect your credit scores, per the CFPB. Formal applications create hard inquiries.

How we researched this

We read myFICO's scoring requirements, the CFPB's 2025 credit invisibles update and consumer guidance, the FTC's cosigning guidance, the PAL rule on eCFR and lender pages on October 1, 2026.

Sources

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