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All kinds of people want and need to borrow money but some people may be worried that their credit score will prevent them from borrowing money. A payday loan can be a good option for those who have no credit although you will likely be offered a smaller loan first, until you build your credit.


What is a credit score?


A credit score is a number between 300–850 that shows a consumer’s creditworthiness. Banks and lenders will look at your credit score to gage how likely you are to be responsible with the money they lend you. The higher your credit score the lower risk you are, the better rates will be available to you. A credit score is based on credit history: number of open accounts, total levels of debt, and repayment history, and other factors.

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What does it mean to have no credit?


If you have ‘no’ credit score this means there is not enough information for the banks to formulate a score for you. This might be because you have never borrowed money before or that you have never opened a credit card


Can I get a loan with no credit?


Yes, at Finger Finance we work with a range of responsible lenders and our lending panel will consider any credit score. However, your credit score may affect the type of loan you can get. If you have no credit score that means there is almost no information for the lenders to use to judge how safe you are to lend money to. You may well be offered a smaller loan to start with until you build up your credit score. 

However there are other things you need to be eligible for a payday loan with Finger Finance. Our 4 main stipulations for securing a payday loan are:

  • You must be a U.S. resident.
  • You have to be at least 18 years of age.
  • You need to have a consistent income with earnings at a minimum of $800 per month.
  • You must have a checking account that your payday loan can be deposited into.

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Can I get a loan with a poor credit score?


Yes. If you have a poor credit score you may have fallen behind on repayments on loans or credit cards before. Just like having no credit score, Finger Finance works with a panel of lenders who are willing to consider a whole range of credit scores. Having a poor credit score does not need to be a barrier to you borrowing money with a payday loan. However, it is always important that you do not over-borrow. Make sure you know you can keep up with repayments and have a plan to pay off your loan. However, if you are currently feeling overwhelmed and already have a lot of debt a payday loan is not the answer. Many charities offer free financial and debt advice that can help you get a hold on your financial life.


Can I get a payday loan if I’ve never borrowed before?


Yes, you can borrow with a payday loan even if you have never borrowed before. However, you must still meet our eligibility criteria. Having borrowed and repaid a loan before is not a requirement for a loan with us.


Can a payday loan help me build good credit?


If you take out a payday loan and make your repayments regularly and on time you can absolutely improve your credit score. Making regular payments and showing banks that you can stick to a repayment plan is a great way to improve your credit score. Payday loans may also be a good option for those who currently have a bad credit score and are looking to improve it, as payday loans are one of the few borrowing options available for people with a poor credit score. 

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How can I build a good credit score?


There are also other ways to build a good credit score including:

  • Get on the electoral roll – The quickest and easiest way to improve your credit score costs nothing, you just need to register on the electoral roll, even if you live at home or in shared accommodation. This is  crucial to building your credit history as lenders can use it to confirm your address.
  • Open a bank account – Having a bank account that you manage well shows lenders that you are stable and financially reliable. If your account has an overdraft make sure you don’t stay in it. Ideally you should use no more than 25% and pay it off as quickly as you can.
  • Get a credit card Getting a credit card can feel scary for those who aren’t confident about their finances, but it can be a great choice for your credit score. Make sure that you always pay it off on time and in full each month. DOn’t let your spending get away from you. This will help you to build a positive credit score and show lenders you can reliably pay off debt. 
  • Manage your household bills well – Keeping up to date on your utility accounts, like your water, electricity and gas, can help you to build a positive credit history.  This is another way that lenders can see that you are responsible with your money. Even just paying your rent on time can improve your score.
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Charlotte Diffey

Charlotte is an expert writer with lots of experience in the financial world. Read her articles for useful guides on payday loans and advice on how to boost your savings.