Whether you’re looking for a personal loan or a business loan, banks often require you to have a checking account so they can verify your income and balance. Otherwise, they may be unable to approve your application. If you don’t have a checking account, is it possible to get a loan?
What if I don’t have a bank account?
Desperately looking for $100 loan in checking account today? If you do own a banking account, it shouldn’t present any ordeal for you. You will just need to apply for the necessary amount and the lender will make a direct deposit within 1 – 2 business days.
But what if you have no checking account?
There are many reasons why you might not have a bank account. Not every bank will allow you to open one, or you might have a financial issue that prevents you from maintaining the minimum account balance. This leaves you with a limited number of options when it comes to getting a loan. Thankfully, the options are not limited to your traditional bank. You can still get one without one, but it will come at a higher cost.
Get a Loan with a Prepaid Debit Card
Some people don’t have a bank account and one way of getting around it is to use a prepaid debit card. Not all lenders offer this option, so you’ll need to do some research if it’s something you want to apply online Virginia payday loans, for example. If Virginia online lenders offer payday loans with debit cards only, you’ll find that it generally works like a normal payday loan or cash advance. You apply for the loan and if they approve you they will put the money onto your prepaid debit card.
Loans with No Bank Account Needed
Cash loans that don’t require a bank account are pretty rare, but they do exist. If you have (or can get) something of value as collateral, some lenders may skip the bank account requirement. You just need to remember that these loans cost more. Below are a few reliable and trustworthy options for getting cash loans without a bank account.
- Payday loans are an emergency solution that can help you make it to your next payday. You have to repay the debt in one lump sum within a month. Lenders typically charge 200% to 700% interest. But the good news is, that you can get a loan without a credit check or other verification. Everyone might seek “local payday loans” on the Internet to get the locations’ addresses nearby. The majority of online payday loans need a banking account for money transfer, so if you want instant cash, go to the loan place near you.
- Title loans are loans you can obtain by surrendering your vehicle’s title. Basically, the lender gives you money and then holds on to your car title until the debt is repaid. If you fail to repay the loan, the lender can take back your vehicle and sell it to recoup its losses. You can find lenders that specialize in vehicle title loans (without relying on a bank account!). To qualify, you need proof of sufficient income to cover the cost of borrowing money for these types of loans.
- Pawnshop Loans. If you have an item of value to pawn, a pawnshop may be able to offer you a secured loan. Most pawnshops will give you the money the same day and require a security deposit that is worth more than the amount you need to borrow.
Should I apply for a loan with no bank account?
Yes. But it will be more expensive than an average personal loan. That’s because many of your options are short-term loans, which come with exorbitant fees and high APRs. A checking account, however, allows you to shop around for stronger lenders, who may have competitive rates for you if you have good credit.
Still, consider opening a checking account
You will be able to get access to more loan options with a checking account. Whether you want to deposit your paycheck or apply for a cash loan, the process will be easier and much faster. If we read the definition of direct deposit on CFPB, we’ll find out that it’s possible to get a small amount of $100 – $500 cash advance directed into your checking account”.
If you avoid traditional banks, because you don’t want to maintain a minimum balance to avoid monthly fees, consider online banking institutions. They have no minimums and can be set up in as little as five minutes. One of the nice things about these banks is that they allow direct deposit for paychecks and benefits checks.
There are also online lenders who offer a much better interest rate than traditional banks. When you apply through one of these lenders, your application goes to multiple lenders who work with the network. This application includes basic information about your credit and character, but it does not include your financial history or income level. If all goes well, you could have multiple offers within minutes.
