Needing a personal loan, but I don't have a strong credit history (currently building one). I do have a co-signer. Any suggestion to avoid scams?

[Anonymous]

I'm in need of a personal loan. Not anything huge, anywhere between $2,500 and $5,000 would be fine. The issue is I personally don't really have a credit history at the moment (but I'm working on building one/changing that). I realize this makes getting a loan more difficult. I do have someone who would co-sign for me that has credit in the 700s. They tried to help me get a loan with our bank since we used the same one, but for whatever reason, the bank said no even with the co-signer.

I asked a loan place in the area if they'd help me with a co-signer and they agreed, but they also wanted my car title. That seemed really excessive even with a valid co-signer. I'd really rather NOT give up my car title. I've never done that before and I've heard once you do that, you don't ever get your true, original title back, even once the loan has been paid off (I guess they send you some type of "legal copy" instead). That's BS and I really don't want to deal with that.

I'm not real sure about online-only lenders. I know some truly are legit, but I definitely worry about getting scammed or having other issues. When I did a search for other loan places in my area, I had a couple come up, but they didn't really look or sound very valid. One I did email and try to call. They never emailed back and the phone call disconnected me. That really made me feel they weren't legit. Another place, I've never really heard of, so I'm not sure if I should try calling them or not.

Does anyone know any truly real and legit online loan places that would work with someone without a credit history? How do I avoid a scam? This situation REALLY sucks =/

Updates

1 y

So I asked another place and it seemed very optimistic. They were willing to not rely solely on my credit and just pay more attention to my debt and income. I don't have any debt so I was excited. Yeah. Once they found out I was due to have a baby any day and on (PAID) maternity leave, they said no. That was the only reason they said no for. I still make money and maternity leave won't be forever. How can they deny me over that?

[Anonymous]

If your friend is willing to cosign you are essentially borrowing the money from him anyway, so have him get a loan and give it to you. I've never heard of a situation where a bank would turn down a load with a cosigner, so there must be some issue with his credit also. Banks are desperate to give loans right now.

If a company takes your car title there's nothing they can do with it. All you have to do is get a duplicate title from the state.

Something doesn't sound right with this whole story.

Online loans are fine as long as it's from a recognizable name, Bank of America, Chase, Citibank.

Credit unions are a good idea, easy, and they have good terms, and will build your credit fast, as long as it's in a building you can walk into.

[Asker]

This is a valid story. Sorry you don't believe it. The bank shocked me too. I even saw their score - it really is over 700. The teller lied. She claimed the underwriter said we were not allowed to go through with it if I was on it. I didn't understand that either but that's exactly what we were told. Never heard of that before.

So basically, it's no big deal and I'd still get my title? Ok. I didn't know how truthful that was so I was worried. I will probably just go with them.

I don't have a credit union (not a member of one). My local one told me I had to be a member with an active account to apply.

[gatixek710]

Go to a credit union.

[Asker]

I got told by my local union I'd have to be a member for a year and have an account with their "bank". I already have a bank and need the money before a year.