Trying to get money without credit can be frustrating. But you should never be worried. Lack of credit is a common experience that does not mean one is helpless. It is possible to get money without credit, and here’s how:

1. Obtain a Peer to Peer Loan

You can use a peer to peer website to get a personal loan from another individual. However, you will need to prove that you are trustworthy.

As a borrower, you will be required to sign up and post your loan demands. Your post should describe, in detail, what you are looking for, the amount, and the reason behind the loan. Potential lenders will then be able to check your listing and determine if you are the best candidate for a loan. These lenders have the opportunity of screening applicants based on their information. Peer to peer lending is hassle-free compared to banks, and in most cases, your loan may be approved if you present your case well.

2. Ask a Relative/Friend to Co-sign

This is simply using someone else’s credit history to get money. In such a case, the co-signer agrees to take full responsibility in case you default on your loan.

Go for someone who is as close to you as possible. For example, siblings, your parent, close friend, or spouse. Preferably, choose someone who has a higher credit score because that will increase your chances of securing the loan. Ensure your co-signer is aware of all the risks involved. He or she should be ready to pay the loan on your behalf.

However, if you need a cash loan fast temporarily you can generally get a small loan from a quick loan lender. Many of these loan products don’t check your credit score, although some will. Learn more on how to get quick loans from a lender that exclusively offers them.

3. Apply for a Loan from a Credit Union

Credit unions are more flexible compared to banks. These institutions are not established with a profit-making motive and tend to be lenient when issuing loans. However, you may need to prove that you are responsible financially.

Search for the most suitable credit union and approach them with your loan request. Credit unions are owned by members who share a common interest. For example, living in the same geographical location or working in the same field. You will be required to become a member before you can apply for a loan.

4. Loan from Friends and Family

You may have close friends or family members who are financially stable. Such people are capable of lending you money based on how responsible you have been.

But keep in mind that borrowing from friends and family can be problematic. Proceed with caution because things could turn ugly. In fact, this method should be used as a last resort. To ensure everyone is protected, the transaction should be well documented so that neither party feels cheated in the future.

If such a transaction is not treated with the seriousness it deserves, it can strain a relationship. Therefore, both sides need to agree to the terms of the loan, and the following must be well outlined in the agreement:

• Interest rate
• Amount of monthly payments
• The amount borrowed
• The date when the loan needs to be paid in full
• Security for the loan
• The next steps in case the borrower fails to honor the loan

5. Use Alternative Credit Lines

You may lack credit or a credit score, but that does not mean that you have failed to pay your bills. Paying off utilities and leases, for a long time, means you have a record that can be used to gauge your financial responsibility.

Approach your creditors and request them to verify your financial records before presenting those documents to potential lenders. You should be issued with an official letter highlighting your information and financial responsibilities. When the lender learns that you can pay your liabilities in full; you will most likely receive a loan.