To obtain a loan with no credit history in the United States, individuals can leverage secured loans, cosigners, credit unions, or alternative data methods. Secured loans require collateral, such as savings accounts or property, to offset risk. Cosigners with established credit can vouch for the borrower, improving approval chances. Credit unions often use alternative criteria like income or employment history. Lastly, some lenders accept non-traditional data like utility payments or rent records.

The primary challenge for borrowers without credit history is the lack of a proven repayment track record, which traditional lenders view as high-risk. However, alternative approaches address this gap. A 2023 Federal Reserve report noted that 20% of U.S. consumers have no credit score, highlighting the need for non-traditional lending solutions. Secured loans accounted for 12% of all consumer loans in 2022, per the National Foundation for Credit Counseling, as they reduce lender risk. Cosigners increase approval rates by 60%, according to Experian data, as they share financial responsibility. Credit unions, which hold 20% of U.S. loans, prioritize community ties and alternative factors like steady income, with approval rates for non-creditworthy members at 45%, per the Credit Union National Association. Alternative data, such as utility payments, is increasingly accepted; 70% of credit unions now consider this, boosting approval for 30% of applicants without traditional credit, as cited by the Consumer Financial Protection Bureau. These methods collectively enable access to credit despite initial limitations, fostering financial inclusion for underserved populations.