Student loans 7 February 2023

5 Best Private Student Loans With No Credit Check

Don’t have good credit? You can still apply for a student loan. We look at the best private student loans that don’t require a credit check.

Table of Contents

Best Private Student Loans With No Credit Check
How To Get Private Student Loans With No Credit Check
How To Build Your Credit Score for Student Loans
FAQs

A college education is an expensive investment for many students and their families. In fact, private student loan debt averages $54,921 per borrower in the U.S. While there are many private loan options available to students, most of them require a credit check; this makes it difficult for students without a credit history to apply for a private loan.

There are a number of private student loans available that don’t require a good credit history, making them ideal for students who haven’t yet built up a credit profile.

Below is our list of the best private student loans with no credit check required, along with details on their application requirements and repayment terms.

Best Private Student Loans With No Credit Check

Lender	ScholarooRating	Fixed rates starting (APR)	Variable rates starting (APR)
Funding U Best for high achieving students with no cosigners Visit website	4.4/5	6.99%	N/A
M Power Best for international students Visit website	4.5/5	12.74%	N/A
Edly Best for income-based repayment loans Visit website	4.3/5	6.97%	N/A
Ascent Best for Fair Credit Visit website	4.8/5	12.71%	12.96%
A.M. Money Best for borrowers with no credit score Visit website	5/5	7.95%	N/A

Lender

Funding U

Best for high achieving students with no cosigners

ScholarooRating

4.4/5

Fixed rates starting (APR)

6.99%

Variable rates starting (APR)

N/A

Visit website

Lender

M Power

Best for international students

ScholarooRating

4.5/5

Fixed rates starting (APR)

12.74%

Variable rates starting (APR)

N/A

Visit website

Lender

Edly

Best for income-based repayment loans

ScholarooRating

4.3/5

Fixed rates starting (APR)

6.97%

Variable rates starting (APR)

N/A

Visit website

Lender

Ascent

Best for Fair Credit

ScholarooRating

4.8/5

Fixed rates starting (APR)

12.71%

Variable rates starting (APR)

12.96%

Visit website

Lender

A.M. Money

Best for borrowers with no credit score

ScholarooRating

5/5

Fixed rates starting (APR)

7.95%

Variable rates starting (APR)

N/A

Visit website

#1 Funding U Student Loans

Funding U not only provides student loans without a credit check but their loans do never require any cosigner either. They base their lending decision on the student’s academic achievement, course load, likelihood to graduate on time, and projected future earnings. This, according to them, are better indicator of a loan repayment guarantee than good credit.

They have a great support system as every student who is pre-approved is assigned a fully dedicated loan officer who helps the student through the whole process and also guides them towards what is best in their specific scenario. They do not charge any fees making the loan overall cheaper for students to borrow.

Funding U, however, does not offer loans to graduate students and undergraduate students can only borrow $3,000 to $20,000 per school year. Moreover, they do not operate in all states and have limited repayment options.

#2 MPOWER Financing Student Loans

MPOWER is the best lender for international students looking for an independent student loan without a cosigner or a minimum credit score requirement. MPOWER does not base its decisions on the borrower’s credit score or history but on their future earning potential. They also have refinancing options for international students.

With MPOWER no credit loans, you can borrow up to 100% of the cost of attendance including your school-certified living expenses in the U.S. Moreover, they provide visa support to international students along with career services. By making on-time payments on their loan, international students can start building their credit for wider future financial opportunities. Moreover, upon approval for their loans, international students become automatically pre-qualified for a Zolve U.S. credit card and bank account.

If international students have any credit history available within the U.S. or their origin country, MPOWER does review it. For those who do not have a credit history, their applications will not be impacted negatively.

#3 Edly Student Loans

Edly was founded in 2019 and only offers income-based loans to students in the U.S. The company offers student loans in 45 states and offers both graduate and undergraduate loans for students in more than 1,700 schools.

Their student loans are available from $5,000 to $25,000 with repayment terms of either five or seven years. Your total payments are capped at 2.25 times your loan amount.

One benefit of Edly is that borrowers who earn less than $30,000 annually don’t have to make payments during that time. Edly also doesn’t require borrowers to have a cosigner.

Since Edly offers income-based loans, your repayments will depend on how much you earn. However, you’ll never pay more than 2.25 times what you’ve borrowed. If you earn less than $30,000 a year, you don’t have to make payments at all and it still counts toward the repayment period cap – which is 10 years.

Here is a summary of the repayment terms:

Payments start four months after graduation
No payments if your income is less than $30,000
Deferred payments during unemployment
If you want to repay early you’ll have to pay up to the cap of 2.25 times the borrowed amount

#4 Ascent Student Loans

Ascent offers a Non-Cosigned Outcomes-Based Loan that does not require any credit check or history. The loan is disbursed based on the student’s GPA. To be eligible for the loan, must have a GPA of 3.0+ and should maintain their school’s Satisfactory Academic Performance (SAP).

Ascent provides a deferment in repayment with a grace period of 9 months for those who prefer it. Also, for this particular non-cosigner academic performance-based loan, they offer a higher autupay discount of 1.00% which can help to lower the rates for students and make the loan cheaper.

Moreover, Ascent charges no fees including no application, disbursement, origination, or prepayment penalty fees. They also reward students upon graduation with a 1% cash back. However, with this loan, they only offer two repayment terms of either 10 or 15 years; whereas, on other cosigned loans by Ascent, borrowers can get multiple repayment terms of 5, 7, 10, 12, or 15 years.

#5 A.M. Money Chicago Student Loans

A.M. Money, also known as Chicago Loans by A.M. Money, is a private student lender that serves students at partnered universities, mainly in the Midwest. It differs from most private lenders by evaluating the borrower’s academic performance instead of their credit history.

The company provides income-based repayment plans for borrowers who face difficulty making monthly payments, which is a unique feature among private lenders.

Loans start at 7.53% APR with a repayment term of 10 years. There is also a six-month grace period after you graduate and the maximum loan amount you can borrow is $50,000.

How To Get Private Student Loans With No Credit Check

Here are not many ways to get no credit check student loans.

You can apply with a cosigner to get a loan if you don’t have a credit history. Many lenders offer loans to students without a credit history if they have a creditworthy cosigner. A cosigner is a person – usually a family member – who signs the loan application with you and is responsible for repaying the loan if you are unable to do so. Applying with a cosigner may also get you better interest rates for your loan.

There are some lenders that consider other things more important when assessing a loan application. Compare private lenders to see if there are any that offer a loan based on merit, future income potential, or financial need. Select the one that best suits your needs and offers benefits or incentives such as loan forgiveness, flexible repayment options, or career counseling services.

How To Build Your Credit Score for Student Loans

Improving your credit score will help you get better interest rates on student loans and open up more funding options. There are a few ways you can build your credit score.

Consider ways to establish your credit, like getting a credit builder credit card. This will slowly start building your credit history and as long as you make payments on time and in full, you should see your credit score increase in a few months.

Credit builder cards let you start with a low credit limit and gradually build up your payment history. Just keep an eye out for the high APRs that are common with these types of credit. You can also take out a secured credit card, which means you’ll need to provide collateral – typically in the form of a security deposit. It might take up to a year or more to build a proper credit profile, but a higher score will help you qualify for better student loan rates.

However, whether it’s a loan or a credit card, make sure you use your credit responsibly, make on-time payments, and keep your balances low. If you want to improve your credit to qualify for a student loan with good APRs, it’s important to start small, make payments on time, and ensure that your debt-to-income ratio remains as low as possible.

You can also ask your parents to add you as an authorized user to their card. This can get your credit journey started much earlier and by the time you require loans for your dedication, you will have a good credit history established.

FAQs

Do private student loans require a credit check?

Although most private student loans require a good credit history or a cosigner, there are lenders like Funding U, Edly, and MPOWER that don’t require a credit check.

Which type of student loan does not require a credit check?

There are some private lenders that do consider credit score or credit history the most important factors in determining the risk of lending. Instead, they base their decision on the student’s GPA, their degree, and their future earning potential. Funding U and MPOWER are two such lenders that provide student loans without a credit check.

Can I still get a private student loan with bad credit or no credit?

It’s possible, but most lenders will require you to have a cosigner if you don’t have good credit. An alternative is looking at private student loan lenders that base their lending decisions on merit, degree type, or future earning potential, and that don’t require a credit check.

Which are the best private student loans without cosigner and no credit history?

Funding U is a great option if you are looking for a loan that does not require a credit history or a cosigner. Edly also does not require a cosigner on student loans. Other good options for such loans include student loans by A.M. Money and MPOWER.