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.

Student loans with no credit check

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

LenderScholarooRatingFixed rates starting (APR)Variable rates starting (APR)

Funding U

Best for high achieving students with no cosigners

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4.4/56.99%N/A

M Power

Best for international students

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4.5/512.74%N/A

Edly

Best for income-based repayment loans

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4.3/56.97%N/A

Ascent

Best for Fair Credit

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4.8/512.71%12.96%

A.M. Money

Best for borrowers with no credit score

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5/57.95%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

Best for high-achieving students without a cosigner

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Funding U

4.4
Scholaroo Rating
Fixed Rates Starting (APR)6.99%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

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.

Pros

  • No credit check loans
  • Cosigner is never required
  • Every student gets a dedicated loan officer
  • No application, origination, cancelation, or pre-payment penalty fee

Cons

  • Low maximum limit for borrowing comparatively
  • Only fixed-rate loans available
  • Not available to international students
  • They only offer loans to undergraduate students
  • Must be a U.S. citizen, permanent resident, or DACA recipient
  • Must be 18 years or older
  • Must be enrolled as a full-time student at a partner college or university
  • Must be a resident of a qualifying state
  • Must have never filed for bankruptcy

FundingU has two repayment options while you’re in school:

  • Fixed monthly $20 repayments (during school and the six-month grace period after graduation)
  • Interest-only payment (during school and the six-month grace period after graduation)

Full repayment starts six months after graduation and the total loan payment is 10 years.

#2 MPOWER Financing Student Loans

Best for international students

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MPOWER

4.5
Scholaroo Rating
Fixed Rates Starting (APR)12.74%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

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.

Pros

  • Approval for MPOWER loan pre-qualifies the international student for a U.S. credit card and bank account
  • International students can borrow up to the full cost of attendance
  • Doesn’t require a cosigner
  • No credit history is required for approval
  • Visa support

Cons

  • Reviews credit history if present
  • Charges a 5% origination fee
  • Only fixed-rate loans are available
  • Must be a U.S. citizen or permanent resident, DACA recipient, refugee, or asylum-seeker
  • Must be enrolled at an eligible school
  • Should be an undergraduate or graduate student
  • Be within two years of your graduation date

With MPOWER you’ll make interest-only payments while you’re in school and for six months after graduation. After that, full payments are due, and the maximum loan term is 10 years.

#3 Edly Student Loans

Best for income-based repayment loans

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Edly Student Loans

4.3
Scholaroo Rating
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

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.

Pros

  • Loan repayments are based on a borrower’s income
  • Borrowers, who earn less than $30,000, do not make payments
  • No cosigners required
  • No credit history required

Cons

  • The maximum loan amount is $25,000
  • Not available to sophomore and freshman students
  • Must be a U.S. citizen or permanent resident
  • Must be enrolled at an eligible school
  • Must be within two years of graduation

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

Best for borrowers with fair credit

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Ascent

4.8
Scholaroo Rating
Fixed Rates Starting (APR)12.71%
Variable Rates Starting (APR)12.96%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

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.

Pros

  • No credit check required
  • Loans are available with or without a cosigner
  • 9 months grace period
  • International students can apply
  • 1% cash back graduation reward
  • High autopay discount for non-cosigned loan

Cons

  • International students require a U.S. citizen cosigner
  • Loan terms are limited compared to other cosigned Ascent loans
  • No cosigner release available for international students
  • Available to U.S. citizens, international students, and other eligible non-citizens
  • Must earn at least $24,000 annually
  • International students must have a qualified co-signer

Ascent has three repayment options for private student loans:

  • Deferred payment while in school with a nine-month grace period after graduation
  • Fixed $25 monthly payments while in school and during the nine-month grace period
  • Interest-only payments while in school and during the nine-month grace period

#5 A.M. Money Chicago Student Loans

Best for borrowers without a credit history

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A.M. Money Chicago Student Loans

5
Scholaroo Rating
Fixed Rates Starting (APR)7.95%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

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.

Pros

  • Offers income-based repayment plans
  • Base loan approvals depend on academic performance and time to graduation
  • Does not require a co-signer

Cons

  • Charges a 4.5% origination fee
  • Only available to students at 15 partner colleges
  • Available to U.S. citizens or permanent residents
  • Must be at least 18 years old
  • Must attend an eligible school
  • Must have strong academic performance
  • Applicants should be undergraduate or graduate students at an eligible institution

With A.M. Money your repayments automatically start six months after graduation. However, you can make payments while in school if you want to pay off your loan earlier. Here are your payment options:

  • Full payments while in school as soon as the loan is disbursed
  • Full deferment while in school with payments starting six months after graduation
  • Income-based repayments with a minimum repayment of $50

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.