Some people have altogether changed their approach to banking, possibly ditching the traditional checking account setup altogether. While they may be able to avoid certain fees, they may find it difficult to get a loan without a traditional bank account. Rather than setting up a checking account solely for the purpose of securing a loan, they may instead choose to pursue alternative lending sources that don’t require a bank account.
How do you get loans without a bank account?
You can get a loan without a bank account. The lenders who specialized in short-term loans have become more creative in their approach to providing financing to a broader range of consumers with diverse needs. Lenders can use the prepaid debit card option to provide funding for short term loans to consumers. In being able to demonstrate consistent, reliable sources of income, you can qualify for a loan without a checking account. The loans are managed completely through a debit card. When applying for a loan, you can usually complete the process online. Some places may require that you complete the application offline in a store setting or other physical location.
What to expect when applying for a loan without a bank account?
Lenders may require that you have a savings account, but many are extremely flexible on this requirement. They rely on your employment history and average paycheck amount to evaluate your capacity to repay your loan. Disability income and other forms of income can be considered when applying for a loan. You will have to provide ID verification in the form of documentation such as proof of address and licensing or State ID information. The loan works similarly to payday loans, title loans and cash advances.
Where are the funds sent if there is no bank account?
When checking accounts aren’t needed, you are required to use a prepaid debit card for loans with no bank account. The debit card is used to process all funding for the short-term loan. The funding is deposited to the debit card, and payments are deducted from debit card on scheduled dates that usually correspond with your payday. The debit card that has been issued is in your name. It can either be mailed to you directly or you can pick it up at a designated location. Your funds are dispensed to the cards after approved. You withdraw the needed funds via a debit card from an ATM.
How are the payments deducted?
When discussing the terms of your loan, you may be provided with a repayment schedule for the loan. you have the option of choosing your withdrawal dates in some cases. In other cases, you may be required to have the withdrawals on whatever your next payday is. The loan amount plus the interest rate are automatically deducted on the assigned dates determined by you and the lender.
You can have a short term loans with no bank account. The debit card will be treated as a traditional checking account, which will mean scheduled payments are processed via the card. Funds are also dispensed through these very cards. You will be required to provide proof of regular income, verify your identify, and proof of residence.