One of the biggest problems that college students face when they try to borrow money or take out lines of credit is that they lack sufficient credit history to qualify for a loan with most lenders. The challenge lies in that without credit history you cannot obtain a loan and without obtaining a loan, you cannot establish credit history. The no credit loan is a starter loan that is used by lenders to allow new borrowers and younger borrowers to break into the credit market easily.Types of No Credit Loans for StudentsIt is designed for new borrowers may be either secured or unsecured. The unsecured version is the optimal choice for younger borrowers, especially those in college or just fresh out of college. To receive an unsecured one, you do not have to have collateral to pledge as security to your servicer. This is a plus for younger borrowers who normally do not own any assets that would be valuable enough to stand good for the loan. It is always the most expensive option in terms of interest charges on the principle amount borrowed, but the added interest is money well-spent that can help you build your credit file and borrowing history.The secured version requires that you have collateral to pledge to the lender. Acceptable collateral is in the home of real property or a late model vehicle that you own. Your servicer would place a lien against your property until you repay the amount that you borrow. It is less costly interest-wise, and for those borrowers looking to borrow larger sums, this type of no credit loan is the easiest to obtain.Responsible Borrowers for No Credit LoansWhen you do not have any credit history, it is often more expedient to borrow the smallest sum possible for first time loans. Most no credit loans should be less than $2500 and should feature terms that allow you to make monthly payments over the course of 12-24 months.Since everyone starts out with a clean slate as far as credit history goes, it is important to be a good steward of your credit from the beginning in order to have a healthy credit score later in life when you decide to make bigger purchases, like a home. Being a responsible borrower involves making timely payments preferably before the due date each month.Even one late payment can have serious consequences on down the road when it comes to future loans, including making it harder for you to borrow money or take out lines of credit or making you pay more for the credit you do reserve through inflated interest rates.