Often it becomes a little difficult to take a loan at a young age, but today we are going to tell you whether you can take a loan without any credit at the age of 17 or not. Through this post, you will get all the information related to the loan.
How To Get A Loan At 17 With No Credit
If I tell you in simple words, you cannot take a loan at the age of 17 without a credit score. If we look at it from the point of view of banks and finance services, then giving a loan without a credit score is a challenge for the bank. For this, we will understand further that if you want to take a loan, then how can you build your credit score so that you can take a loan in the future.
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Other ways to get a Personal loan
Although, if you are 17 years old then you cannot get a loan but there are some ways through which you can get a loan.
Loan through Cosigner
If you have not taken any loan before then it is obvious that you will not have any credit history and you will not have any credit score and if you are 17 years old then the bank will not give you a loan without your credit score. So how to get a loan? One way to get a loan is cosigner.
Cosigner is the person who signs the loan application while taking a loan, so that the responsibility of repaying the loan falls on the cosigner. If you are unable to repay the loan, then the responsibility of repaying the loan will be of the cosigner but before applying for a loan application, the cosigner should have a credit history or credit score so that the bank can give you a loan keeping the cosigner in mind.
Cosigner Benefits
If the cosigner has a good credit score and a good earning record, the chances of approval of the loan application increases significantly, which helps in getting the loan.
Things to keep in mind when choosing a co-signer
If you are selecting a cosigner then you mainly need to keep three things in mind.
First, the cosigner’s credit score should be good so that it becomes easy to get a loan.
Secondly, the cosigner’s financial condition should be good and he should have a good income source so that there is no financial problem in repaying the loan.
Thirdly, the most important thing is a trustworthy relationship between you and the cosigner. It is important to have a good and excellent relationship because the cosigner will be a relative or a poor friend of yours who will trust you and you will trust your cosigner and with this trust the cosigner will help you in getting the loan.
Get A Student Loan At 17 With No Credit
If you want to take an education loan at the age of 17 without a credit score, then private student loan is a good option for you under which you can take a loan but you will get a loan only if you have a co-signer with you.
Having a co-signer will make it easier for you to get a loan but the interest rates in private student loan are a little higher, so do some research on this subject and find the right bank and finance service and take your education loan from there.
Remember that taking a loan is a huge financial responsibility which has to be repaid later, so if you are taking a private student loan, then spend it only on your education and avoid taking a loan for other work.
What to do if you don’t get a loan
If the bank does not give you a loan, then you have some options with the help of which you can get a loan, in which the first way is to save money. We all know that by saving money, we increase it gradually so that we can use it when needed. If you keep saving a small amount daily, then after a while you will have a good amount of money which you can use as per your need.
The second way is that if you are a student and your age is 17 years and you need money, then you should do a part-time job. By doing a part-time job, you can bear your own expenses. This is a better option to earn money along with studies, which will give you financial stability. Therefore, if you want to do a job, then do it and spend a part of the salary you get on yourself and save some part so that when needed, you can use it as a loan. The best thing about this thing is that you will not have to pay any kind of interest.
The third and most common way is our friends and family members from whom we borrow money when needed. So if you have a good relationship with your family and friends, then you can take money from them as a loan and return it after a time limit.
FAQs
If you are thinking about taking a personal loan, then at the age of 17 and without a credit score, you cannot get a loan.
Yes you can avail a student loan at the age of 17 but while availing the loan it is mandatory to have a co-signer on whose behalf the bank will give you the loan.
No, you cannot take a car loan at the age of 17.