Sometimes having no credit is worse than having bad credit when trying to get a bank loan. It's almost like lenders would rather deal with the devil they know and when that they don't. This means that someone who has bad credit has one thing a person with no credit has, payment history. Bankers like to see a track record for how person repays their lending products when considering them for a loan. If you have no credit you do have options for getting a bank loan. And if you're trying to use a bank loan in order to establish credit there are additional choices to help you with that.

The most important thing is that somebody with no credit that intends to want more easily borrow money in the future, establish some kind of credit history. If you're working is a good first step. Employment is a key factor for people with no credit or those looking for a loans for people with bad credit to know. Besides credit the employment history and validity of income is arguably the second most important thing in getting a loan. You're even in a better position if you've been working for two or more years at the same company and have either had the same income or it's been gradually increasing. Having income is important because it shows a lender that you have the ability to pay back the loan.

Another important key is looking at your expenses in comparison to your income. Banks compare how much money you make to how much you spend expenses each month. They usually look at a much pay for rent and how much you pay any other fixed bills. If your total monthly expenses are less than 40% of your gross income (which is your income before deductions and taxes are taken off) your in a good position. If your monthly expenses are 80% of your gross monthly income is going to be difficult. You had to do your homework as every bank will have different criteria for evaluating this expense to income ratio.

These are a couple factors to consider when trying to get this type of lending product. Having information helps a lot especially if you feel a little overwhelmed. Having no credit is like being a mystery to the bank and it makes it hard for them to be able to build a lending product when having an unknown. But regardless, there are many lenders out there that are willing to look at these types of clients and if you do some shopping around you may be pleasantly surprised at how many choices you do have.