How to Get a Loan at 17 With No Credit History
Written by: Jacob S.
Published on:
When you’re 17, you’re on the edge of financial independence. Maybe you just started your first job or need a little extra money for a car, school, or personal expenses. But when you try to apply for a loan, you quickly run into a wall: most lenders won’t approve borrowers under 18, and without any credit history, the options get even narrower.
That doesn’t mean you’re completely stuck. There are legal, responsible ways to prepare for borrowing, start building credit, and set yourself up for loan approval once you turn 18 and are considering your first time loan with no credit history.
Key Takeaways
- You must be 18 or older to get a loan. U.S. law doesn’t allow minors to enter binding loan agreements, so most lenders require you to be at least 18 to apply.
- A cosigner can help you borrow sooner. Having a parent or guardian with good credit can make approval possible before you turn 18.
- Start building credit early. Becoming an authorized user on a trusted adult’s credit card helps establish your credit history ahead of time.
- Turning 18 expands your financial options. Once you’re of age, you can apply for personal loans, credit cards, and other types of credit independently.
- Responsible borrowing starts with preparation. Building good money habits and understanding how credit works will make future loan approval easier and more affordable.
Why It’s So Hard to Get a Loan at 17
At 17, the biggest hurdle isn’t your credit score but rather your age. U.S. law considers you a minor, meaning you generally can’t enter into binding contracts. Since loan agreements are legal contracts, lenders can’t approve an application unless there’s an adult legally responsible for repayment.
On top of that, most 17-year-olds have little to no credit history. Without a credit file, lenders have no way to measure your reliability as a borrower, making approval riskier.
What Loans Can I Get at 17?
However, if you do need financial help, there are some options.
Option 1: Apply With a Cosigner
The most straightforward way to access funds at 17 is by applying with a cosigner — usually a parent or guardian. A cosigner is someone over 18 who agrees to take responsibility for the loan if you can’t repay it.
Here’s why that matters: lenders look at your cosigner’s credit score and income instead of just yours. That shared responsibility can make it possible to get a personal loan, auto loan, or even a small installment loan that you otherwise couldn’t qualify for.
But remember, there are risks of cosigning a loan. If you miss payments, your cosigner’s credit will take the hit, too. Make sure you’re ready to budget and manage repayments before moving forward.
Related: Cosigner loans
Option 2: Become an Authorized User
If you’re not eligible to borrow yet, you can still start building credit by becoming an authorized user on someone else’s credit card account. When a trusted adult adds you to their card, their payment activity is reported to the credit bureaus under your name, too.
That means if they use their card responsibly, your credit report benefits from it. Over time, this can help you establish a foundation for your own credit score before you even turn 18.
Just be sure to coordinate with the main cardholder to avoid overspending. This strategy is about building credit, not taking on debt.
Option 3: Explore Student or Youth Loan Programs
If you’re still in school and need money for education-related costs, consider federal or private student loans. Federal loans usually require you to be at least 18, but private lenders sometimes allow younger borrowers with a cosigner.
Option 4: Build Credit Before You Apply
Even if you can’t get a loan right now, you can start laying the groundwork towards accounts that build credit for when you turn 18.
Open a checking or savings account to demonstrate responsible money management.
Building a relationship with a bank early helps you learn how to manage deposits, track spending, and maintain a balance. Consistent account activity shows financial maturity, which future lenders look for.
Use debit responsibly to build a positive banking record.
Even though debit cards don’t affect your credit directly, using them wisely — avoiding overdrafts and monitoring your balance — demonstrates good money habits.
Once you turn 18, consider a secured credit card to start your own credit file.
A secured credit card, backed by a small deposit, lets you build credit with minimal risk. Using it for small purchases and paying off the balance each month establishes your first independent credit history.
Keep your utilization low and always pay on time.
Whether it’s a secured card or a future credit account, aim to keep your balance below 30% of your limit. On-time payments are the single biggest factor in building strong credit.
That early discipline will make a huge difference when you apply for your first loan.
Option 5: Borrow Responsibly From Family or Trusted Friends
While not a formal loan, borrowing from a parent, guardian, or other trusted adult can be a safe, short-term way to meet financial needs at 17. The key is to treat it like a real loan, agree on repayment terms, and follow through.
This approach helps you practice managing payments and accountability without damaging your credit if something goes wrong. It’s also a good way to demonstrate reliability before you enter formal lending relationships at 18.
If possible, write down the repayment plan to keep both sides clear and avoid misunderstandings.
Worried about lending to someone close? Lending money to family and friends
Option 6: Explore Ways to Earn Instead of Borrow
If you can’t legally take out a loan yet, the best alternative is to focus on income-building opportunities. Side jobs, part-time work, and online gigs can help you fund short-term goals without taking on debt.
For example, you might:
- Take on freelance or local service work (like tutoring, pet care, or yard work).
- Participate in legitimate online gig platforms that allow users under 18 with parental consent.
- Save a portion of your income to build an emergency fund or reach a specific goal.
These steps won’t just help you earn money now — they’ll also teach valuable budgeting and saving skills that will make you a stronger borrower later.
When You Turn 18: Your Borrowing Options Expand
Turning 18 opens the door to financial independence. You’ll be able to apply for products like personal loans, auto loans, and credit cards in your own name, without needing a cosigner.
If you’ve taken the time to build even a small amount of credit or show consistent income, you’ll stand a much better chance of being approved. Responsible habits early on can help you qualify for better terms and make borrowing more manageable.
Personal Loans After 18
Once you’re 18 or older, you can begin exploring personal loan options that suit your needs. Every lender has its own approval criteria, so it’s important to compare terms, interest rates, and repayment options before choosing.
The best first step is to focus on your readiness, a solid budget, some savings, and a growing credit history. These fundamentals will help you qualify for more favorable rates when the time comes.
At 17, you’re not quite ready to take out a loan on your own, but that doesn’t mean you can’t start preparing. Whether you build credit as an authorized user, learn to budget, or save with the help of family, those habits will set you up for success once you hit 18.
When that time comes, you’ll be ready to make informed, responsible choices and confidently take the next step toward your financial independence.
