Short answer: with no credit history, or too little of it for a credit score, a lender has less to go on, and each lender decides whether and how it lends to you. Before you apply, it can help to know what Regulation B lets you ask a lender to consider, and which products the CFPB lists for starting a credit history. This is general information, not legal or financial advice.
No file and a thin file
The CFPB has described two groups. People who are “credit invisible” have no credit record at the nationwide credit reporting companies. Others have a record that is “unscorable”, because it holds too little credit history, or no recent activity, to produce a score. In its 2015 report, the CFPB estimated that as of 2010, 26 million U.S. consumers were credit invisible, about 11 percent of adults, and another 19 million, or 8.3 percent of adults, had records that a commercially available scoring model treated as unscorable (CFPB Data Point: Credit Invisibles, May 2015, read October 30, 2026). That is 26 + 19 = 45 million people. These figures are from 2010 data and may be outdated.
A first step is to check whether you have a file at all. See check your credit report before a loan, and for the difference between a report and a score, see credit report vs credit score.
What Regulation B says about credit history
Regulation B does not make a lender lend to someone with no history. It says that, to the extent a creditor considers credit history for similarly qualified applicants, it “shall consider” (12 CFR 1002.6(b)(6), eCFR, text up to date as of October 28, 2026, read October 30, 2026):
- The credit history, when available, of accounts that you and your spouse are permitted to use or are both contractually liable for (1002.6(b)(6)(i)).
- On your request, any information you present that tends to show the credit history the creditor is looking at does not accurately reflect your creditworthiness (1002.6(b)(6)(ii)).
- On your request, the credit history, when available, of an account reported in the name of your spouse or former spouse that you can show accurately reflects your creditworthiness (1002.6(b)(6)(iii)).
The official interpretation adds that a creditor may limit the types of credit history and references it considers, applied to all applicants without regard to a prohibited basis. But “On the applicant’s request, however, a creditor must consider credit information not reported through a credit bureau when the information relates to the same types of credit references and history that the creditor would consider if reported through a credit bureau” (comment 6(b)(6)-1, Supplement I). So if you have paid a loan from a lender that does not report, ask whether the lender will look at your own records of it.
Ways to start a credit history the CFPB lists
The CFPB says “Some loans and credit cards can help you safely build, or rebuild, your credit history”, and suggests asking “your bank, credit union, or local nonprofit credit counseling agency” about them (CFPB, last reviewed September 13, 2024, read October 30, 2026; check it for updates):
| Option | What the CFPB says | Our guide |
|---|---|---|
| Secured credit card | You put in an amount of cash, and you can spend up to that amount on the card | secured card vs credit builder loan |
| Credit builder loan | The money is held for you as savings while you make small payments, and at the end you receive the full amount you paid | how credit builder loans work |
| Retail or store credit card | A card with a relatively low credit limit from businesses that sell goods and services | Ask about the APR and fees before you sign |
The CFPB also lists payments that do not build a credit history because they are not reported to the nationwide credit reporting companies: debit card and cash use, prepaid cards, and payday loans. It says a “buy here, pay here” car loan does not help establish a history either (CFPB). For what being an authorized user on someone else’s card does to your report, see authorized users and your credit report.
If you apply for a personal loan now
- With a cosigner: someone with a credit history agrees to repay if you do not. Read the risks of cosigning a loan and joint loan vs cosigner together with them.
- Secured by savings or another asset: see secured vs unsecured personal loans.
- From a credit union: see credit union vs online lender and payday alternative loans from credit unions.
- A small-dollar loan from a bank: see small-dollar loans from banks and credit unions.
If you are turned down, the lender must give you the reasons or tell you how to get them; see loan application denied: the adverse action notice. If you are under 21 and looking at a credit card, see credit card rules under 21.
An example, only for the math
This example is only for the math. The $2,000.00 loan is an example figure, and the rate is the Federal Reserve’s August 2026 average of 11.90% APR for 24-month personal loans (G.19). A lender may offer you a different rate, so compare your own offers.
| Item | Example amount |
|---|---|
| Loan | $2,000.00 |
| Monthly payment, 24 months at 11.90% | $94.05 |
| Total paid | $2,257.20 |
| Interest | $257.20 |
$94.05 x 24 = $2,257.20, and $2,257.20 - $2,000.00 = $257.20. Paying on time each month is what the CFPB says builds a strong history (CFPB); ask the lender whether it reports your payments to the nationwide credit reporting companies.
Questions to ask a lender
- Do you lend to applicants with no credit score, and what do you look at instead?
- Will you consider my own records of loans or other credit that was not reported?
- Do you report payments to the nationwide credit reporting companies?
- If I need a cosigner, can I ask later for the cosigner to be released?
- What is the APR and the total cost of the loan?
Checklist
- Check whether you have a credit file and what is in it.
- Gather records of any credit you paid that was not reported.
- Ask the lender to consider that history, as Regulation B lets you.
- Compare a secured card or credit builder loan before borrowing more.
- If someone cosigns, make sure they know the risks; see cosigner release options.
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Sources
- CFPB Data Point: Credit Invisibles (May 2015, PDF)
- CFPB: What are some ways to start or rebuild a good credit history?
- eCFR: 12 CFR 1002.6, Rules concerning evaluation of applications (Regulation B), current text up to date as of October 28, 2026
- eCFR: Supplement I to Part 1002, Official Interpretations (Regulation B), current text up to date as of October 28, 2026
- Federal Reserve: G.19 Consumer Credit (released October 7, 2026), terms of credit, August 2026: credit card plans and 24-month personal loans
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.