An Ultimate Guide on No Bank Account Payday Loans
Modern loan options are fast and convenient. They allow you to request financial assistance from anywhere in a few clicks and get a money transfer into your bank account balance without even visiting a lender’s store. But what if you’re one of 5.9 million Americans who have no active checking or savings account in a bank or credit union?
It may seem like such a reality leaves you with no options. But luckily, there are a few ways to get a loan without a bank account. Although they can be quite expensive, you may find them lifesaving if you need cash quickly. Let’s explore what no bank account payday loans and their available alternatives can get you by in an emergency.
Table of Contents
- Why Is a Bank Account Required for a Payday Loan?
- What Is a Payday Loan with No Bank Account?
- Payday Loans vs. Cash Advances
- Can I Get Payday Loans Without a Bank Account?
- What Are My Options for No Bank Account Loans?
- Top Benefits of Getting Quick Cash Loans Without a Bank Account
- How to Get a No Bank Account Payday Loan?
- Requirements for Getting Payday Loans Without a Checking Account and Credit Check
- Bottom Line
Why Is a Bank Account Required for a Payday Loan?
A co-signed personal loan is a financial product you can get by using a person’s excellent credit score to get better interest rates or more flexible repayment terms. Even if many lenders don’t have minimum credit score requirements, you can increase your approval chances if you use a co-signer or co-borrower to get secured personal loans if you don’t have a good credit score.
What Is a Payday Loan with No Bank Account?
A payday loan with no bank account is a short-term loan that allows you to get cash on hand and repay the borrowed amount plus fees after receiving your next paycheck. As there’s no checking account to withdraw money from, the repayment is usually made by giving a lender a post-dated check on the entire loan amount.
No bank account payday loans are bad credit loans. They come with no credit history checks through major credit bureaus. Additionally, they offer immediate payoffs. Once a lender approves your loan request, you’ll get a loan amount on hand and can use it on any personal needs you have. As it’s an unsecured loan, no collateral is required.
However, just like online loans till payday, no bank account short-term loans also come with a high interest rate. Therefore, it’s recommended to approach them cautiously and use them only in case of financial emergencies.
Payday Loans vs. Cash Advances
Payday loans and cash advance loans share many similarities but are different financial products. Here’s a comparison.
| Payday Loans | Cash Advances | |
| Definition | A payday loan is a form of short-term, high-interest payday advance you get from an online lender. | A cash advance is a group of financial services. It’s often used to describe a form of borrowing when you withdraw money from your credit card balance. |
| Loan Amounts | $100 to $1,000 | Depends on an issuer’s limits. Typically no more than 30% of your available credit card balance |
| Loan Cost | $15 to $30 per each $100 borrowed. APRs may be over 400% | 17.99% to 29.99% + a cash advance fee of 3% to 6% |
| Repayment Terms | 2 to 4 weeks, the due date is tied to a borrower’s next paycheck | As long as your credit card stays open. The repayment is made the same way as your regular credit card bill |
Can I Get Payday Loans Without a Bank Account?
Having an active bank account may be mandatory for most online payday lenders. This is because they transfer loan funds via direct deposits and can’t deliver you money in any other way. Additionally, loan providers use your checking account to automatically collect your loan payments.
However, you can still get payday loans without a bank account. To do this, you need to visit a lender’s store in person and provide other options for loan repayment, for example, a post-dated check.
What Are My Options for No Bank Account Loans?
Borrowers with no bank accounts can consider the following loan options.
Payday Loans
A payday loan is one of the most generally requested and easiest to get loans when it comes to financial emergencies. These short-term loans can be obtained without a checking or savings account, but your options are most likely to be limited. This is because not all lenders deal with unbanked borrowers and have physical stores to give them money on hand. However, there are some storefront payday lenders that offer cash payouts.
To get a payday loan without a checking account, you will have to provide a post-dated check on the total loan cost, including the lender’s fees. Then, a lender will give you money on hand, so you don’t need to wait for hours or days to get a direct deposit.
Auto Title Loans
A car title loan is a secured loan you can get by putting up your vehicle’s title as a repayment guarantee. Just like a payday loan, it’s usually due by a borrower’s next paycheck. You can get it without a checking account if you provide a post-dated check on the total loan cost.
The main difference lies in the interest rate and loan amount you can borrow. Title loans usually come with lower costs due to the collateral provided. Also, the sum you can get is determined based on your car’s cost. It can be up to 50% of your vehicle’s value.
An auto title loan is a no credit check loan. You can get it fast, even with a bad credit score. However, you need to evaluate the risk associated with your collateral. Use a title loan only if you’re sure about your ability to repay the funds on time. Otherwise, you can lose your vehicle, which will be repossessed and used to cover your unpaid debt.
Credit Card Cash Advances
A credit card cash advance is a quick cash loan that doesn’t require any preliminary loan request. You can get it in a few minutes if you already have a valid credit card. All you need is to visit the nearest ATM or office of your credit card provider. Then, you simply withdraw money from the available credit account balance.
However, you need to be aware of the withdrawal terms before borrowing money against your credit card. When you get a cash advance, interest accrues from the moment you receive cash. Also, the rate is usually higher than those on regular credit card purchases. Plus, you may be charged an extra cash advance fee.
Pawn Shop Loans
A pawn shop loan is a secured loan that you can get on hand without providing your active checking account. It allows you to borrow money in exchange for some of your valuable belongings, such as jewelry or electronics. The amount you can get is typically a portion of your asset’s estimated cost. To get your property back, you need to repay the borrowed sum plus interest on the due date.
See Also: A Guide to 13 Different Types of Loans
Top Benefits of Getting Quick Cash Loans Without a Bank Account
Although it may be more difficult to find a direct lender that offers same day loans without a bank account, they come with some key benefits, such as:
Fast loan process. In most cases, it takes about 5 minutes to fill out a form and a few more to get a response from a lender; Speed of getting the money. While a direct deposit takes some time and also depends on your bank cut-off times, loans with no bank account come with immediate payouts once you get approved; No impact on your credit. Unlike traditional personal loans, cash loans come with no hard credit checks through major credit bureaus. Thus, they won’t be displayed in your credit report; Any credit is accepted. Typically, there are no minimum credit score requirements for cash loans. You can qualify as long as you’re solvent.
How to Get a No Bank Account Payday Loan?
The process is usually quite simple. First, you need to find a suitable lender that offers a no bank account payday loan. Compare several lenders and check their requirements, including the documents needed. Then comes a loan application procedure. It consists of the following steps:
- Fill out a loan request form. Visit a lender’s store with all the needed documents and enter your personal and contact details in the form.
- Wait for a loan decision. This is usually a fast process. The lender will review your application information on eligibility and get back to you with an approval decision.
- Read and sign a loan agreement. Make sure all the terms suit you before signing loan documents.
- Provide a post-dated check on the total loan amount and receive cash on hand.
Requirements for Getting Payday Loans Without a Checking Account and Credit Check
Each lender may have its specific eligibility criteria. However, most payday loans without a checking account and credit check come with some basic requirements, such as:
Be an adult US resident (at least 18 y.o. for most states); Have a steady monthly income; Have proof of identity, valid cell phone number, and email; Provide a post-dated check for repayment.
Bottom Line
Although getting a loan without a bank account is possible, your choices may be limited. Some available options include payday loans, auto title loans, credit card cash advances, and pawn shop loans. To get a no bank account loan, you need to provide collateral or a post-dated check on the total loan cost.
