Can I Get a Loan at 18?
Yes, you can get a loan at 18. You are now legally allowed to take out loans, including personal, guarantor, student, and car loans. Moreover, you may already have a source of income, which increases your chances of getting a loan at 18.
However, getting loans can be tricky for 18-year-olds because you probably have little to no credit history. Some lenders may be unwilling to offer loans in such cases. Therefore, you need to know the great ways to get an 18-year-old loan.
Whether you don’t have a credit history or you have a bad credit score, CocoLoan can help you sort out that financial emergency. By submitting your information, you will be connected with several lenders that may be willing to offer loans for 18-year-olds.
I Am 18, Can I Get a Car Loan with No Credit History?
It is always exciting to own a car at 18, but you may not have the finances to cover the expenses. In that case, you may need a car loan to allow you to get your dream car. Getting car loan approval at 18 may be challenging if you don’t have a credit history. However, the following tips will tilt the odds in your favor:
Search for the Right Lenders
You should choose lenders that specialize in helping people with no credit or bad credit. However, you must show a reliable and constant source of income before many lenders grant you a car loan.
Check Your Eligibility for Special Financing
Car manufacturers offer special programs to students and first-time car buyers. Eligibility requirements for these programs do not usually involve credit history. Rather, your GPA, income, and the down payment you can offer will determine if you will get the auto loan.
Consider Local Credit Union
Credit unions often have the flexibility to handle risky borrowers, including those with bad or no credit. You should check out the financing options of your local credit unions to see if you qualify for them.
Get a Co-signer for the Loan
Find a family member with a good credit history to co-sign your loan application. This may increase the likelihood of loan approval. It may even help you get lower interest rates.
How Can I Get Loans for 18-Year-Olds through CocoLoan?
CocoLoan ensures a quick and convenient lending process, allowing you to get instant funding for your needs. The following steps will help you get loans for 18-year-olds through CocoLoan:
- Fill out the Loan Application Form. You start by submitting your information online at your convenience. The details required include your personal and contact information and income documentation.
- Receive and Compare Offers. Once you submit your information, you will get different offers from multiple reliable lenders. Compare these offers to check the one that best fits your needs.
- Sign the Agreement. When you select a suitable offer, you will sign the loan agreement with the lender through a secure web portal.
- Get Funded. Most lenders will deposit your funds directly into your checking account as soon as one business day. Some may take up to 2-3 business days. Therefore, you must ask your lender for their policies and estimated time.
How Does CocoLoan Compare
 | Why Trust CocoLoan? | |
|---|---|---|
| How much can you get? | $50 to $35,000 | Zero upfront charges |
| What are the loan terms? | 1 - 36 months | Easy repayment |
| Are credit checks needed? | Yes | Mostly soft pulls |
| Are bad credit accepted? | Yes | All credit considered |
| How to apply? | Totally online | Simple and straightforward |
What Should I Consider When Choosing a Lender?
The following factors will help you determine a reliable lender for 18-year-old loans.
Eligibility Requirements
The first thing to consider is whether you qualify for a loan from the lender or not. Every online direct lender has its requirements, including credit scores and income amounts. Therefore, you must confirm that the lender you choose offers loans for 18 years old.
Interest Rates and Fees
Interest rates will determine the overall amount you will end up repaying over the loan term. You should aim for the lowest possible interest rate to ensure you can repay the loan as and when due.
Likewise, you should pay attention to the fees the lender is charging. These fees include loan origination, appraisal, and credit report fees. Lenders offering reasonable fees are a good choice.
The Application Process
Finally, you must consider how convenient and easy it is to apply for an 18-year-old loan from the lender. The lender you choose must have good lending systems in place, ensuring online applications and loan agreement process. It’d also be best to choose a lender that offers direct bank fund deposits.
How to Improve My Chances of Getting Loans for 18-Year-Olds with No Credit History?
The following tips will help improve your chances of getting loans for 18-year-olds, even if you have no credit history.
Have Some Savings
Lenders will be able to view the account info upon loan application. Some lenders may approve your loan faster when they see that you’re good at saving. A constant savings history with your bank will increase your chances even if you don't have a credit history.
Apply for Lower Amounts
It is better not to apply for higher amounts when you have no credit history. This may be a turn-off to lenders and may cause rejection. Therefore, you should request lower amounts instead.
Get a Letter from Your Employer
Assuming you have only been employed for a short period of time, you may request a letter from your employer stating the genuineness of your employment. This may increase your chances of loan approval.
