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When someone applies for a personal loan, there are a lot of moving parts and key players involved. While each lending institution will have their own unique process in place, loan applicants can expect to come across a loan officer, loan processor, or an underwriter.

There’s a decent amount of overlap in these roles, so to get some more clarity on who does what, let’s take a look at a loan officer vs. loan processor vs. underwriter.

What Is a Personal Loan Officer?

A loan officer evaluates loan applications and determines whether or not to recommend them for approval. A personal loan officer is a specific type of loan officer that focuses on personal loans. Personal loan officers are generally employed by credit unions, banks, and financial institutions.

Generally, a personal loan officer takes on the following job responsibilities:

•   Contact potential borrowers to see if they need a loan.

•   Work with loan applicants to gather information required for the application.

•   Walk applicants through the different loan types available to them and their unique terms.

•   Collect, verify, and review an applicant’s financial information (e.g., credit score, income, and other factors).

•   Review any loan agreements to confirm they are in compliance with all state and federal regulations.

•   Approve loan applications or pass them onto management for a final decision.

A major part of a personal loan officer’s responsibilities happen during the underwriting process. This process is used to determine if an applicant qualifies for the loan they are applying for. Once a loan officer collects and verifies all of the necessary personal and financial information about an applicant and any corresponding documents, the loan officer will assess the applicant’s need for a loan and their ability to repay it on time.

A loan applicant working with a loan officer can turn to them about any questions they have about what a personal loan is or about the application process. A personal loan is a type of consumer loan and consumer loan officers may use a fully automated underwriting process using software or they may complete it themselves (which is more often the case with smaller banks and credit unions).


💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

What Is a Personal Loan Processor?

A personal loan processor, also known as a loan interviewer or loan clerk, is responsible for interviewing applicants and other necessary parties to obtain and verify the financial and personal information required to finish the personal loan application. Once the applicant is approved for the loan, the personal loan officer will prepare any documents required for the appraisal and the closing of the personal loan.

Recommended: Where to Get a Personal Loan?

What Does a Personal Loan Processor Do?

The personal loan processor serves as a liaison between the financial institution issuing the loan and the applicant to make sure that qualified applicants can secure a loan in a timely manner. The loan processor will also help applicants decide which loan product is the best fit for their financial needs and goals. For example, if an applicant is experiencing financial hardship, the loan processor can help them set up debt payment plans.

Review Your Application

A loan processor receives, collects, distributes, and evaluates applicant information required to complete the loan application. They can approve or deny an applicant.

Verify Your Information

Personal loan officers are tasked with interviewing applicants and other necessary parties in order to verify any financial and personal information that must be evaluated during the application process.

Request Documents

As a part of the verification process, they will also request and collect any necessary documents from the applicant. They are also responsible for preparing any documents required for the appraisal and closing process.

Third Party Reports

In addition to collecting documentation from the applicant, the personal loan processor will work with third parties to obtain any necessary documents and reports, such as the applicant’s credit report.

Is a Personal Loan Processor the Same as an Underwriter?

While there is some overlap between what a personal loan processor and an underwriter do, these are two different roles. A loan underwriter focuses on evaluating how creditworthy an applicant is by collecting and evaluating an applicant’s financial information. Typically, they then use loan underwriting software to make an approval or denial recommendation.

A loan processor also reviews how eligible an applicant is for a loan by collecting and verifying important information and documents, but they don’t use underwriting software to make a decision. The loan processor has the ability to approve or deny an applicant.

Is a Loan Officer or Loan Processor Responsible for Your Personal Loan Approval?

When it comes to loan processor vs. loan officer, both loan officers and loan processors have the ability to reject or deny a loan application or, at the very least, make a recommendation for whether or not an applicant should receive a loan.


💡 Quick Tip: With lower fixed interest rates on loans of $5K to $100K, a SoFi personal loan for credit card debt can substantially decrease your monthly bills.

When Does a Personal Loan Processor or Officer Get Involved?

When someone applies for a personal loan, they’ll connect with a personal loan processor or officer when they submit their initial application. Either one can start the process of collecting personal and financial information and supporting documentation from the applicant.

What Happens During Personal Loan Processing?

During the personal loan processing stage, the applicant will work with the personal loan processor to provide them with any personal information, financial information, or documentation that the personal loan processor needs to finish their application.

Recommended: How Much of a Personal Loan Can I Get?

Getting Approved for a Personal Loan

Getting approved for a personal loan requires going through the underwriting process which assesses how qualified a loan applicant is. Some firms use underwriting software to make a decision whereas others make the decision without the aid of software.

The Takeaway

When comparing a loan officer vs. loan processor, it’s clear that both loan processors and loan officers play an important role in the personal loan application process. Their roles often overlap and where they work determines the exact role they take on.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Is a personal loan processor the same as an underwriter?

No, a personal loan processor is not the same as an underwriter, although they share similar responsibilities. A loan underwriter determines whether or not an applicant is creditworthy. A loan processor collects and verifies any personal and financial information required to complete loan applications.

What does a personal loan processor do?

A personal loan processor works with personal loan applicants to gather the information and documents needed to complete their applications. A personal loan processor also prepares appraisal and closing documents.

When does a personal loan processor or officer get involved?

A personal loan processor or officer gets involved once a consumer starts the application process. They can help guide the applicant through that process.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Having credit card debt of any amount can feel overwhelming, but this is especially true with a steep amount like $20,000. Not sure how to pay off $20,000 in credit card debt? There are a number of options to consider to get your credit card debt under control and paid off.

For one, you might consolidate the debt using a balance transfer credit card or debt consolidation loan. Or, it might come down to adjusting your monthly budget or simply choosing the repayment method that works for you. Another option is pursuing a debt management program. Really, once you understand the potential solutions at your fingertips, paying off $20,000 in credit card debt can start to sound more doable.

Tips on Paying Off $20,000 in Credit Card Debt

Having $20,000 in credit card debt does present a challenge to the borrower working to pay that amount off, but it is possible to make progress and become debt-free. Let’s look at some ways you can make progress on paying off your debt.

Open a Balance Transfer Credit Card

Paying off credit card debt can be more difficult when you’re juggling multiple credit card balances. To help simplify the debt repayment process, you might consider opening a balance transfer card.

It’s possible to transfer just one credit card balance or multiple to a balance transfer card. This can be a good move to make if you can qualify for a balance transfer card with an introductory annual percentage rate (APR) of 0%.

While this 0% APR period is temporary, it can last at least six months and sometimes longer than a year. Not having to pay interest during that time period means all payments go toward the principal balance. This makes it a lot easier to pay down credit card debt faster, and it can save a lot of money in the process.

The trick here though is to pay off the entire balance before that introductory period ends and the interest rate shoots up.

Use a Debt Consolidation Loan

If someone has multiple sources of credit card debt, they might also consider consolidating that debt using a debt consolidation loan. This will lead to taking out a $20,000 loan, but it can help streamline the debt repayment process. In fact, debt consolidation is one of the common uses for personal loans.

After you apply for and get your personal loan approved, the way a debt consolidation loan works is that you’ll then use the loan funds to pay off your other sources of debt. This could be multiple credit cards or other types of debt, like personal loans mixed with credit cards.

Ideally, when someone applies for this new loan, they’ll be able to qualify for a lower interest rate than they’re currently paying on their other sources of debt. That way, they’ll spend less on interest and can afford to put more money each month toward repaying their debt. This can make it easier to pay the debt off faster and save on interest (you can even determine your exact savings with a personal loan calculator).

Another benefit of a debt consolidation loan is that it takes multiple sources of debt and turns them into just one source, with a single interest rate, minimum monthly payment, and payment due date.

Choose the Right Repayment Method

Paying down debt takes a lot of work and discipline, and sometimes you need the right type of motivation to stay on track with debt repayment. This is where the debt snowball and debt avalanche repayment methods can come into play, with some consumers finding one method helps them make more progress than the other.

•   Debt snowball. With this method, the borrower makes the minimum payments on all credit cards each month, but focuses on making extra payments on the card with the lowest balance. Once they pay that one off (it will be the fastest to pay off), they’ll move onto focusing on the card with the next lowest balance. Making progress quickly like this can be really motivating for some people.

•   Debt avalanche. Again, the borrower will continue to make all minimum debt payments each month. With this strategy though, any extra payments go toward the debt with the highest interest rate first. This method saves the most money, which can free up room in someone’s budget to make more debt payments each month.

Debt Management Program

Another option consumers have for getting help paying down their $20,000 credit card debt is to join a debt management program. This can be a good path forward for consumers who can’t afford to make extra debt payments each month or whose credit score doesn’t make it possible for them to qualify for a balance transfer card or a personal loan for debt consolidation.

Debt management plans are offered by credit counseling agencies. During the course of these programs, the credit counselor will alert the borrower’s creditors that they’re working with a debt management plan. From there, the counselor will attempt to negotiate a lower interest rate or lower monthly payments.

These plans tend to last three to five years, but they can help consumers make progress on their debt and avoid bankruptcy.

Credit Card Debt Forgiveness

Unfortunately, it can be very difficult to negotiate credit card debt forgiveness and it rarely happens. When someone opens a credit card, they agree to repay the money they borrow.

It can, however, be possible to negotiate a new payment plan that is easier on the borrower’s budget, especially if some kind of hardship occurred that’s making repayment challenging.

Additional Options for Paying Off Debt

One of the best ways to make progress on paying off debt is simply to make repayment a priority. To stay on track, consumers need to make their minimum required debt payments a fixed part of their monthly budget. By budgeting for debt payments and prioritizing them over other spending temptations, it’s more likely to make faster progress.

Another way to make progress on paying off $20,000 in credit card debt is to work on making additional room in your budget for extra credit card payments. Finding ways to lower expenses and other bills can leave more money each month to pay off debt. Remember — the faster you pay off your debt, the less you’ll spend on interest.

It may be necessary to make some spending sacrifices until you’re debt free, but once you are, you’ll have a lot more room in your monthly budget to add fun spending back in. Cutting back on dining out, shopping, traveling, and entertainment now can really pay off in the future.

The Takeaway

It is possible to pay off $20,000 worth of credit card debt, but it will take time. Patience is key here, as is assessing which approach for tackling $20,000 in credit card debt will be right for you. For some, a debt consolidation loan (one of the types of personal loans) may make sense, while others may opt for the debt snowball or avalanche method. Spending time focusing on paying off credit card debt can really help improve your financial outlook though, and it’s very much worth the effort.

If someone decides that consolidating their debt would really help them streamline repayment and possibly even save them money on interest, they may want to research their personal loan options. SoFi makes personal loans easy — it’s possible to check your rates in 60 seconds, and you can borrow up to $100,000.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Sometimes life throws a few curveballs your way. When those curveballs include unexpected expenses (like an emergency car repair or medical bills) or a job loss, it can be hard to keep your budget on track. This may lead to paying some bills late, or not at all, which only puts you further in the hole, thanks to interest and late fees. Your credit can also take a hit.

While you may not be able to get back in the black overnight, there are ways to regain control of your finances and work toward financial stability. Read on for simple strategies that can help you get caught up on bills, plus tips on how to avoid getting behind in the future.

6 Tips for Getting Caught up on Bills

Falling behind on bills can feel overwhelming, but it’s a challenge that many people face at some point. The key is to face missed payments head on and come up with a plan to gradually bring all of your accounts up to date. These tips can help.

1. Make a Master List of Bills

A good place to start is by organizing your bills and making a master list of everything you owe. This includes rent/mortgage, utilities, insurance, credit card payments, personal loans, and any other debts. Consider organizing them by due date, amount owed, and interest rates. Having a clear picture of your financial obligations helps you prioritize and plan your payments more effectively. This list will serve as a roadmap to ensure you don’t overlook any bills and can systematically address each one.

2. Reach Out to Your Creditors

Communication with your creditors is crucial when you’re struggling to keep up with payments. Companies and creditors may be willing to work with you if you explain your situation honestly. They may offer solutions such as extended payment deadlines, reduced interest rates, or temporary payment plans. And you don’t have to wait until your accounts are severely delinquent — reach out as soon as you know you’re having trouble. Proactive communication can prevent additional fees and negative marks on your credit report.

Recommended: How to Negotiate Medical Bills

3. Pay Priority Bills

All bills are not equally important, and when funds are limited, it’s essential to prioritize which bills to pay first. You might start with necessities that ensure your basic living conditions, such as housing, utilities, and food. These are critical to maintain your daily life and stability. Next, you may want to focus on any bills that have legal consequences if left unpaid, such as child support and taxes. Secured debts, like car loans, should also be a priority to avoid repossession. Once these essentials are covered, you can move on to other debts.

4. Pay Bills with the Highest Interest Rates

High-interest debt can quickly spiral out of control, making it harder to catch up. After prioritizing essential bills, consider paying down debts in order of interest rate, from highest to lowest. This repayment strategy, known as the avalanche method, can save you money in the long run by reducing the amount of interest you’ll pay over time. Consider making larger payments toward these debts while maintaining minimum payments on lower-interest obligations.

5. Cut Unnecessary Expenses

To free up more money for paying bills, take a close look at all of your monthly expenses and identify areas where you can cut back. Dining out, subscription services, gym memberships, and entertainment are examples of expenses you may be able to cut until your finances are in better shape. Creating a bare-bones budget can help you focus on what’s necessary until you’re caught up. Redirect the money saved from cutting expenses toward paying down your debts. Even small savings can add up and make a significant difference over time.

6. Boost Your Income

Increasing your income can provide a much-needed boost to catch up on bills and put more padding in your checking account. Consider taking on a part-time job, freelancing, or selling items you no longer need. If you have any special skills or hobbies, you might look into starting a side business. Or you might explore opportunities to work extra hours or seek a raise at your current job. While increasing your income may require additional effort and time, the extra money can help you get back on track faster.

How to Avoid Falling Behind After You’re Caught Up

Once you’ve managed to catch up on your bills, it’s important to implement strategies to avoid falling behind again. Here are some ways to help you stay on track.

Create a Budget

A well-structured budget is the cornerstone of good financial management. Now that things are more stable, you might want to take a closer look at what’s coming and going out each month to ensure that your spending aligns with your priorities. One simple budgeting framework to consider is the 50/30/20 rule. This suggests dividing your after-tax income into three main categories, with 50% going to “needs,” 30% going to “wants,” and 20% going to savings and debt payments beyond minimums.

Enroll in Autopay

Automating your bill payments is one of simplest ways to avoid missing payments and getting hit with late fees. Consider setting up autopay for your recurring bills, such as rent, utilities, and credit card payments. To make sure you don’t accidentally overdraft your account, put reminders on your calendar or set up alerts on your phone before each bill is due. That way you can make sure you have sufficient funds in your account to cover these automated payments.

Build an Emergency Fund

An emergency fund acts as a financial safety net, allowing you to cover unexpected expenses without disrupting your regular budget. Aim to save at least three to six months’ worth of living expenses in a separate, easily accessible account, such as a high-yield savings account. Start small if necessary and gradually build up your fund over time. Having an emergency fund can prevent you from relying on credit cards or loans if you get hit with an unexpected expense or loss of income and can help you maintain your financial stability.

The Takeaway

Catching up on bills when you’re behind can be challenging. Fortunately, by assessing your situation and coming up with a strategic pay-off plan, it’s possible to get back on track. Staying proactive and disciplined can help you avoid falling behind again and allow you to work toward long-term financial stability and growth.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What to do when you can’t catch up on bills?

Consider making a list of all your outstanding bills, then prioritizing the ones that are for necessities (housing, for instance) and those with the highest interest rates. To free up funds to pay off your bills, you may need to temporarily cut or reduce unnecessary expenses, like dining out, streaming services, and entertainment. It’s also a good idea to reach out to your creditors and explain your situation. They may be willing to work with you by offering a more manageable payment plan and crediting late fees.

What bills should I prioritize?

If you’re behind on bills, you’ll want to prioritize any bills relating to necessities, such as housing and utilities. Next, you might focus on obligations that, if neglected, could have legal consequences (like past-due taxes or child support), followed by secured debts (like an auto loan or mortgage) to avoid repossession. After that, you might prioritize high-interest debts (like credit cards), since the longer it takes to pay them off, the more expensive they get.

Why is it so hard to catch up on bills?

Catching up on bills can be challenging due to high-interest rates that make debts grow quickly. Having a limited income, getting hit with unexpected expenses, and poor financial habits (such as lack of budgeting or overspending) can also make it difficult to catch up once you fall behind.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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We aren’t born with a credit history and, ironically, one of the only ways to build a credit history is to take out credit — which can be hard to do if you don’t have any credit history. Does that mean if you have little to no credit history, you can’t get a personal loan?

Not necessarily. But you may have a harder time qualifying for a loan with favorable interest rates. Read on to learn why a credit score is such an important factor in the loan application process, how to qualify for a personal loan without a substantial credit history, and how no-credit-check personal loans work.

What a Personal Loan Is and How It Works

Personal loans are a type of lending product that allows consumers to borrow money to use for a wide variety of purposes. There are typically few limitations on what you can use a personal loan for, unlike a mortgage or student loan that dictates what the borrower can spend the borrowed funds on.

Personal loans are available through banks, credit unions, and other lending institutions. With this type of loan, you receive the proceeds (or principal) in one lump sum then repay it, plus interest, in fixed monthly installments over the term of the loan.


💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. SoFi personal loans come with no-fee options, and no surprises.

What Is a Credit Score?

A credit score is a three-digit number used to predict how likely you are to pay your bills on time. Your credit scores (yes, you have more than one) are calculated using information from your credit reports. Different companies use different credit scoring models, but most take the following factors about a person’s financial history into account:

•   Bill-paying history

•   Current unpaid debt

•   Number and type of loan accounts you currently have

•   How long current loan accounts have been open

•   How much available credit is currently being used

•   New applications for credit

•   Financial events like debt in collections, bankruptcies, or foreclosures

When you apply for a loan, the lender will typically take your credit score into account to determine if they should lend you money, how much money they should lend you, and at what interest rate. The higher someone’s credit score is, generally the easier it is to qualify for lending products with low interest rates.

There are many different types of credit scores and scoring models. Your credit score depends on the credit scoring model used by the lender you’re applying with. Each lender also has its own personal loan credit score requirements.

How Do You Find Your Credit Score?

While you may not be able to track down every potential credit score you have, there are some easy ways to learn your FICO® credit score, which is one of the most widely used credit scoring models. This can give you an idea of what your scores likely look like across the board.

•   Credit card or other loan statements: You can often find your credit score by looking at your monthly credit card or loan statements or by logging into your account online.

•   Nonprofit counselors: If you’re working with a nonprofit credit counselor or HUD-approved housing counselor, those professionals can often provide you with a free copy of your credit report and credit score.

•   Credit score services: You may be able to get your credit score for free from a credit score service as part of a free trial. But be careful about getting locked into a service that charges a monthly fee.

•   Credit reporting agencies: You can buy your score directly from the credit reporting companies.

Recommended: How To Read A Credit Report

What You Can Do if You Don’t Have a Credit Score

If you’re trying to get a personal loan with little to no established credit, you may run into some challenges. Here are some steps that can help.

Establishing Credit

First-time personal loans for no-credit-history borrowers can be hard to get. To get around this hurdle, you’ll want to start establishing credit. One way to do this is to become an authorized user on a trusted friend’s or family member’s existing credit account. Another way is to apply for a secured credit card backed by collateral. With each option, as you make on-time payments, you’ll begin to establish a credit history.

Finding a Cosigner

Another option that can make it easier to qualify for credit products without a strong credit history is to add a cosigner (or co-applicant) to a loan or credit card. When lenders see that someone else (someone with good credit) is willing to make payments on the original borrower’s behalf (if they fail to do so), they have a lot more confidence in lending them money.

Using Collateral

Adding collateral to a personal loan means that the lender has something they can seize and use to recoup their losses if the borrower defaults on their payments. For example, auto loans are secured by the car the loan is financing. Before using collateral, a borrower needs to make sure they can make their loan payments on time each month or they risk the lender taking possession of their collateral.

Personal Loan Options With No Credit History

If a borrower is really struggling to find a personal loan because they don’t have a credit history, they can pursue a loan that doesn’t require a credit check. This type of lending product does exist but often comes with high interest rates and fees to make up for the risk the lender feels they are taking on.

In some cases, loans that don’t require credit checks, like payday loans, can be predatory, so consumers should make sure they know what they’re getting into when taking out this type of personal loan.

Applying for a Personal Loan With No Credit

Some lenders offer personal loans with no credit check. Since they can’t rely on your credit history, they will typically focus on other indicators of your ability to pay back the loan, such as your income, employment history, rental history, and any previous history with the lender. When applying for a personal loan with no credit check, it’s important to read the fine print and carefully weigh the benefits against the costs. Lenders will often charge higher interest rates and impose more fees to lessen their risk.


💡 Quick Tip: With average interest rates lower than credit cards, a personal loan for credit card debt can substantially decrease your monthly bills.

Checking Your Personal Loan Rate

If you’re in the market for a personal loan, it’s a good idea to research different lenders to find one that’s best for your needs. As you compare lenders, take note of their minimum credit requirements, loan amounts, repayment terms, funding time, and whether or not they offer joint, cosigned, or secured loans (which may help you get a lower rate).

Once you’ve identified a few lenders you prefer, it’s time to prequalify – this only involves a soft credit check and gives you a preview of the loan offers you may receive, including your estimated annual percentage rate (APR).

SoFi offers personal loans with competitive fixed rates and same-day funding. Checking your rate takes just a minute.

FAQ

Can someone with no credit score get a personal loan?

Some lenders offer personal loans with no credit check. These lenders will look at other indicators of your ability to pay back the loan, such as your income, employment history, rental history, and any previous history with the lender. No credit check loans may come with higher rates and fees, though, so you’ll want to read the fine print.

How hard is it to get a personal loan with no credit score?

It isn’t necessarily hard to get a personal loan without a credit score, as personal loans for no-credit-history borrowers do exist. The bigger challenge is to get approved for a personal loan with a low interest rate and that doesn’t require collateral or a cosigner.

Do no-credit-score, no-cosigner loans exist?

Yes, loans that don’t require a credit check or a cosigner do exist. However, these loans may come with sky high interest rates and less-than-ideal terms.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Trade schools (also known as vocational schools or technical or career colleges) offer hands-on training and education to prepare students for a specialized career in fields like carpentry, computer information systems, cosmetology, and welding. Most trade school programs range from less than one year to two years, and students graduate with a diploma or certificate.

While trade schools are typically more affordable than four-year colleges and universities, the cost can still add up. The average annual cost of trade school is approximately $15,000, according to the latest data. Many trade school graduates take out student loans to help cover the expense.

Fortunately, there are ways to help reduce trade school student loan debt, including payment plans and trade school debt forgiveness options.

Understanding Trade School Debt

If you went to trade school for the chance to get a high-paying vocational job, you may have student loan debt to repay.

The average debt for students who attend trade school is approximately $10,000, according to one estimate. By comparison, the average federal student loan debt is $38,375 per borrower, according to the Education Data Initiative.

Borrowers can use private and federal student loans to help pay for trade school. If your trade school program is accredited, you may be eligible for federal loans. To apply, complete the Free Application for Federal Student Aid (FAFSA).

You can also take out private student loans for trade school. You’ll need to undergo a credit check in order to be approved. Unless you have strong credit, you may need a cosigner for the loan.

Are Trade School Loans Eligible for Forgiveness?

Students who take out qualifying federal loans may qualify for student loan forgiveness. Typically, you must make a certain number of payments under a qualifying repayment plan for a specific period of time, and then the remainder of your student loan balance is canceled.

Most private student loans don’t offer forgiveness.

Federal Loan Forgiveness Programs for Trade Schools

There are several federal student loan forgiveness programs borrowers may qualify for, depending on their situation.

Public Service Loan Forgiveness (PSLF)

Trade school graduates who are employed by a government agency or a qualifying nonprofit organization may be eligible for Public Service Loan Forgiveness. To qualify, borrowers must be employed full-time and have qualifying federal Direct loans.

While working for an eligible employer, borrowers must also enroll in an income-driven repayment (IDR) plan or the Standard Repayment Plan. After completing 120 qualifying payments, any remaining Direct loan balance they have is forgiven.

In March 2025, President Trump signed an executive order to limit eligibility for PSLF and requested an update to the program’s regulations. The executive order is being reviewed, and the PSLF program remains unchanged for now, according to the Federal Student Aid website.

Income-Driven Repayment (IDR) Forgiveness

Income-driven repayment plans base a borrower’s monthly payments on their discretionary income and family size, typically resulting in lower monthly payments. Borrowers must update their income and family size yearly (a process called recertification). By the end of the repayment period, which is 20 or 25 years, the remaining loan balance is forgiven. However, forgiveness under most of these plans is paused as of the end of March 2025.

Applications for income-driven repayment plans were temporarily on hold earlier this year due to a federal court injunction. But online applications for three of the four IDR plans are now available.

The IDR plans are:

•  Pay As You Earn (PAYE). Payments are set at 10% of a borrower’s discretionary income over 20 years.

•  Income-Contingent Repayment (ICR) Plan. ICR calculates payments at 20% of a borrower’s discretionary income divided by 12, or the amount they would pay on a repayment plan with a fixed payment over 12 years, whichever is less. The repayment term is 25 years.

•  Income-Based Repayment (IBR). Payments for loans borrowed after July 1, 2014 are 10% of discretionary income over 20 years. For older loans, payments are 15% of discretionary income for 25 years. On the IBR plan, forgiveness is still proceeding at this time since this plan was separately enacted by Congress.

•  Saving on a Valuable Education (SAVE): As of March 2025, the SAVE plan is no longer available after being blocked by a federal court. Forgiveness has been paused for borrowers who were already enrolled in the plan, and they have been placed in interest-free forbearance.

Borrower Defense to Repayment

If you enrolled in a trade school based on misleading information from the school, or you were the victim of other types of misconduct by the institution, you can apply to have your federal loans forgiven under a process known as Borrower Defense Loan Discharge.

If your borrower defense application is approved, a discharge means you will no longer have to repay your federal student loans. In some cases, you may also see reimbursement for federal loans you’ve paid up to now, including interest on the loans.

You can submit a borrower defense loan discharge application on the Federal Student Aid website. It’s important to note that in 2023, a federal court delayed the effective date of the latest regulation for borrower defense. No applications can be processed under that regulation unless the injunction is lifted. However, you can still currently apply for borrower defense.

Closed School Discharge

If you were unable to complete your program or degree because the trade school you were attending closed, or if the school closed within 180 days after you withdrew, you may be eligible for a closed school discharge of your federal student loans. That means you will no longer be obligated to repay the loans. Contact your loan servicer for the application to get your loan discharged.

Alternative Ways to Reduce Trade School Debt

If you don’t qualify for trade school debt forgiveness or a loan discharge, there are a number of other ways to help lower your loan payments.

Refinancing and Loan Consolidation Options

Student loan refinancing involves paying off your existing loans with a new loan from a private lender. Ideally, the new loan will have a lower interest rate, which could lower your monthly payments, or better loan terms. You can refinance both private and federal student loans.

There are different types of refinancing borrowers might want to explore, including Parent PLUS refinance if you took out loans for your child’s education.

Just be aware that refinancing federal student loans makes them ineligible for federal benefits like income-driven repayment plans. Make sure you won’t need access to these federal programs before you move forward with refinancing.

Another option is loan consolidation. A Direct Consolidation Loan allows you to combine federal loans into one new loan to simplify your payments, potentially lower your monthly payment amount, and gain access to IDR plans and federal forgiveness programs.

However, with consolidation you may have a longer repayment period, pay more in interest, and lose access to some loan cancellation options.

Employer-Sponsored Loan Repayment Assistance

Some employers offer a benefit called loan repayment assistance, in which they help employees repay their student loans. The terms of these programs vary depending on the employer, but in general, an employer might establish a maximum amount they will contribute, and the employee may have to work for the company for a specific period of time to be eligible. Check with your benefits or HR department to find out if your employer offers loan repayment assistance.

Grants and Scholarships for Loan Repayment

There are private grants and scholarships that can help you pay off your student loans. These programs may be based on need or merit — or a combination of both. You can search for private grants and scholarships on online platforms like Fastweb and FinAid.

You can also reach out to professional organizations you are affiliated with and companies you have a connection to, to find out if they offer grants or scholarships for loan repayment.

State-Based Loan Forgiveness Programs

Most states offer student loan forgiveness programs for residents. Many of these programs are aimed at borrowers working in public service fields, such as health care, teaching, and law, and require specific service commitments. Borrowers must typically meet a set of criteria to have student loan debt forgiven.

To find loan forgiveness programs in your state, search your state government website.

How to Apply for Trade School Loan Forgiveness

The rules and criteria for applying for trade school loan forgiveness vary by program. In general, you can go to the relevant website and fill out and submit an application online.

But first, read about the program and make sure you meet the eligibility criteria. If you do, gather the appropriate documentation. Typically, you’ll need to provide proof of employment, loan statements, and payment history. Then fill out the application as directed and upload any required documentation. Be sure to continue making payments on your student loans in the meantime as your application is being reviewed.

The Takeaway

If you’re dealing with trade school student loan debt, it is possible to get loan forgiveness. You may be eligible for options like Public Service Loan Forgiveness, state-based forgiveness programs, and employer-sponsored loan assistance, among others.

You can also explore private grants and scholarships to help pay off your student loans, as well as loan consolidation and student loan refinancing. Consider different options to see which one is the best choice for your situation.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

What types of loans can be forgiven for trade schools?

Most federal Direct Loans qualify for both Public Service Loan Forgiveness and forgiveness under income-driven repayment (IDR) plans. (However, as of March 2025, forgiveness under all but one of the IDR plans is paused.) In order to be eligible for forgiveness on either the PSLF or IDR programs, trade school borrowers need to meet certain other qualifying criteria.

In addition, most states have state-based loan forgiveness programs that may forgive both private and federal loans. And some employers also offer loan repayment assistance as an employee benefit.

Do trade school graduates qualify for PSLF?

Trade school graduates may qualify for PSLF if they work full-time in public service for the government or a qualifying nonprofit organization and have qualifying federal Direct loans. They must also make 120 qualifying payments under an income-driven repayment plan or the Standard Repayment Plan.

What happens if my trade school closes?

If your trade school closes and you were unable to complete your program, or if it closes within 180 days after you withdrew from school, you may qualify for a Closed School Discharge, which means you are no longer obligated to repay your loans. Contact your loan servicer for the application. They can also walk you through the process of getting your loan discharged.

Can private trade school loans be forgiven?

Generally, private trade school loans are not eligible for forgiveness. Private lenders rarely offer forgiveness — except, sometimes, in extreme circumstances such as if the borrower becomes completely and permanently disabled or dies.

However, private loans may qualify for state-based forgiveness programs, employer-sponsored loan repayment assistance, or private scholarships or grants that help with loan repayment. Do some research to see what options are available for your situation.

What are the best alternatives to loan forgiveness for trade school debt?

Alternatives to forgiveness for trade school debt include employer-sponsored loan repayment assistance if your employer offers it, or private scholarships and grants that help you pay off student loan debt. You can also explore options that could help you manage your payments and potentially even lower them, such as loan consolidation and student loan refinancing.

photo credit: iStock/sturti
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