Loans for 18 Year Olds

Have you been seeking a way to get a student loan, car loan, or other personal loan as an 18-year-old teenager? You are in the right place! Submit your information and get your loans today!

$2,500
Get StartedWant to borrow more than $5,000? Click here!
Kiplangat BettFinancial Writer

Jul 27.2022. Filed under: Short Term Loans Hub

Can I Get a Loan at 18?

Yes, getting a short-term loan is possible once you are 18 years old. However, you tend to have only a limited credit history at this age. It is often harder to get a loan at this age because you have more volatile and less established finances. As a result, your options may be more limited than those of people with a more established credit history, more savings, or a higher income.

In this case, you may need a cosigner to help you qualify for good rates on a wide range of loans, including personal, student, and car loans. Before taking a loan for 18-year-olds, you need to first figure out if you will be able to repay the loan.

How to Get a Loan at 18?

Applying for loans at 18 might be quite challenging. However, proper research and analysis will help you get loans for 18-year-olds. You need to first check for lenders that may offer special credit for young people who don’t have long credit histories.

While you are at legal age to get a loan, you need to show your potential lender that you meet the income requirements and have a checking account. No lender will dismiss you at first glance because you don’t have a credit history. Rather, you still get to apply for your first loan since everyone starts from somewhere.

You can request a loan from lenders through WeLoans, which will instantly return offers for you from multiple lenders. Then, you can select a suitable lender who will approve loans to 18-year-olds.

How Does WeLoans Compare?

Why Use Us?
How much am I allowed to borrow?Up to $35,000No hidden fees or charges
What are typically the loan terms?Up to 36 monthsVarious repayment options
Do lenders check my credit?Yes Soft search only
Do lenders take bad credit?YesBad credit considered
Chances of approvalGoodQuick turnaround
How to apply?Apply onlineNo paperwork needed
Get Started

Pros and Cons of Getting a Loan at 18

Getting a loan at 18 can be very beneficial under the right circumstances. However, there are some downsides to it too. So, you must check the following pros and cons before borrowing.

Pros

  • Quick access to funds. After a lender approves your loan for 18-year-olds, they will fund your checking account as soon as the next day. This helps you to meet your immediate needs as soon as you can.
  • It helps build your credit history. Getting this type of loan will help you create and establish your credit history. Consistently making on-time payments can increase your credit score. These will ultimately affect your eligibility for future loans and access to better interest rates.

Cons

    • Limited loan amounts. At 18 years old, you will most likely have limited or no credit history. This makes you eligible for only a small loan that may not meet your current needs.
    • Potentially high rates. Your limited or no credit history will also affect your eligibility for loans with favorable terms and low rates.
    • Risks of unnecessary debts. This type of loan may cause unnecessary debt if you have trouble paying it back. So, ensure you budget repayments and only apply for loans you can afford to repay.

I Am 18, Can I Get Car Loans With No Credit History?

Owning a car at 18 is an exciting feeling, and there are car loans to make this possible. A car loan allows you to own a car while you split the payment into a couple of monthly repayments at a set interest rate.

At 18, you may have never applied for credit. Thus, getting a lender to approve car loans for 18-year-olds with no credit history can be challenging. However, it is not impossible. Doing the following will increase your chances:

Double Check Your Credit

Despite being sure that you do not have a credit history, it is important that you still double-check. Car loan lenders use your credit score to decide your loan eligibility. For instance, if you have been authorized as a credit card user in the past, it will show on your credit report, and this may give you a credit score. So, you need to know for sure.

Consider Getting a Co-Signer

If this is your first car loan, many lenders will require you to get a co-signer to qualify. Your chances of getting loan approval are often easier with a cosigner. You may talk to your family members or close friends to get someone willing to help you.

If your cosigner has good credit, you may even qualify for better interest rates. You get to “borrow” their better credit ratings and “combine” their income with yours in order to get the loan. Once the lender approves your loan, you have the chance to refinance the loan and remove the cosigner.

Prepare for a Down Payment

Most lenders may require you to have a down payment, especially when getting a car loan for the first time. Down payment requirements often vary for different lenders; the minimum is generally about 10% of the car’s selling price. Down payments will lower your monthly repayment and total overall interest. So, a higher down payment is better for you.

What Is the Best Loan for 18-Year-Olds?

The best loan for an 18-year-old will depend on different factors. You need to consider how crucial your current needs are and whether you need a loan. If the financing is necessary, you can consider checking with your family and friends. However, taking a short-term loan for 18-year-olds is also an excellent option.

When you submit your information with WeLoans, we will connect you to several industry-leading leaders with great deals. So, you need to compare the lenders and find the most suitable deal for you. As an 18-year-old, you should look for a lender that accepts a cosigner or lends to people with limited or no credit history.

Compare the following features offered by the lenders:

    • Interest rates
    • Loan amounts
    • Fees, including establishment fees, early repayment fees, monthly fees, etc.
    • Other features include an extended car loan warranty, an offset facility, and more.
  • How much would you like?

    $2,500
    Get Started

Alternatives to Loans for 18-Year-Olds

It is usually more beneficial to exhaust all cheaper alternatives before getting a loan for 18-year-olds. Some options you can consider are:

Borrow from Family or Friends

You can form a sort of lending circle with family members and friends you can trust. You may also borrow from a friend or family member, which you can pay back at an agreed date. This kind of financing is relatively safer, often comes with no interest, and does not affect your credit score.

Use a Student Credit Card

If you’re expecting a paycheck soon, you can borrow against it using your student credit card. The credit card can even help you build credit early. However, you must ensure responsive use of the card and charge only what you can repay.

Take a Part-time Job

If you don’t need quick cash, you can take up a part-time job. It could be a remote job such as freelancing or affiliate marketing. Or you could go to physical sites such as restaurants, grocery stores, etc. This is a good source of income, and you can earn more than you need.

Get Loans for 18 Year Olds Even with No Credit History!

If you feel getting a loan at 18 might be too difficult, don’t panic. With our platform, you will get loan approval from a wide panel of reliable lenders, which increases your chances of getting instant cash. Begin your application with WeLoans today!

Apply now