By George Reed on December 6th, 2018
If you have lost a good relationship with your bank, getting a new loan may be more difficult than usual. The clients who are not able to pay their loans back will be offered riskier options. If you are struggling with finances, take a look at some common alternative options. Use them when you need to take loans with no bank account or credit check.
If the relationship with your bank got worse and you don’t have a bank account anymore, the odds that you have a high credit score are pretty low.
However, a bad credit history does not mean that you will be rejected by a bank. But what to do when you got denied in a bank?
The possible option is to take a loan from other financial institutions, for example, a local government. It would require you to provide the whole stack of documents. One can also ask for help from family or friends, but they not necessarily will have the exact amount you need at the precise moment. Nonetheless, there are chances to take a loan with bad credit and no bank account from other financial institutions.
Where to Find a Loan without a Bank Account?
You might ask why it is so hard to get a loan without a bank account. Lenders are often worried about the money they lend to the clients. There are customers who don’t have a bank account which is the main reason why lenders get worried most of all. They simply borrow money from different banks and don’t pay it back. This way such customers manage their finances and cover financial needs. For this reason, lenders charge high interest rates.
It might seem that bad credit loan lenders don’t have anything to worry about because they solve the problem by charging high interest rates. They sometimes reach up to 200, 500 or even 700 percent. However, even high interest rates cannot help lenders in creating effective solutions to fight with untrustworthy clients.
You may find a lot of online adverts of the companies that claim to offer no credit check loans. The thing is the lenders cannot actually make such claims. Each lender always checks the credit and employment status of every single customer before issuing online loans with no bank account. The good news is that requirements to the clients with bad credit score can be lowered. In this case, lenders conduct kind of soft credit check.
Why a checking account is so important?
Some lenders can use your account information for the purpose of scheduling an automatic debit from this account on the payment date. Another purpose of checking customers’ accounts is checking the financial stability of the client. The client’s credit history can give the lender a hint about his finances. This information will be used as a part of the credit risk analysis.
In most cases, if you need a bad credit loan, you will have to secure a loan by collateral.
Except for the payday lenders, most of the lenders require customers to have a valid bank account. This is a basic application requirement for those who would like to take a loan online.
As for the other eligibility requirements, the potential clients need to be at least 18 years old. They must be U.S. citizens or permanent residents, earn a steady monthly income of at least $1,000 after taxes.
Also, customers need to provide work and home phone numbers as well as a valid email address. These basic requirements are the same for all the lenders. Remember that if you take a no credit check loan, you will not be able to get access to brick-and-mortar banks, withdraw cash from ATM and other.
If you are facing financial difficulties, you still can take out a bad credit loan. Let’s take a quick look at some of the most popular of the options. We will also consider all the advantages and disadvantages of taking a cash loan without a bank account.
Option #1. Title Loan
One of the most popular tips on how to get a loan without a bank account is to take a title loan. A title loan is a short-term loan that is given to people who are borrowing against the value of their car or other highly valuable items. The bank is taking out 20% to 60% of your item’s value.
Depending on the bank, one can find offers for up to 80-90% of the resale price. In this case, a bank account would be definitely required.
When you take a title loan, your car serves as collateral. You are still allowed to drive it around but if you will not be able to repay your loan, it will be confiscated by a bank and you will lose ownership of the item.
If the loans with no bank account are needed, you have to fulfill the following eligibility requirements:
- be a US citizen or permanent resident
- be at least 18 years old
- possess a car
- prove regular income.
As you can see, this kind of loan is quite expensive and risky. The point is that you can take a title loan if you are able to pay it back within a short period. They are designed to be repaid in a month or so. After the loan term expires, a car will be repossessed.
Option #2. Pawn Loan
Compared to the title loans, pawn shop loans are much less risky. The truth is they are also less expensive as you use less valuable items as collateral for the pawn loans. They can include jewelry, electronics, valuable antiques, etc.
Similar to the title loans, the interest rates tend to be very high though they can be negotiable. It depends on your relationship with the pawn shop and previous loans as well as the state laws.
The resale value can be 30% to 60%. After you pay back the percentage of your item resale value in cash, you receive your item back. Otherwise, it will be repossessed.
The customers can typically repay a pawn loan in a few months.
To take loans for bad credit with no bank account from a pawn shop, you need to get your items appraised on the internet. Then, take this appraisal to the pawn shop. You will have to fill out an application form to get your money and a ticket. It usually takes no more than one day. After you repay the loan, you can reclaim your item.
Option #3. Credit Card Loan
Credit cards can serve as loans for people with bad credit and no bank account. Whenever we make purchases using a credit card, we actually borrow money from the bank. Credit card loans are a viable loan replacement, especially, if you need a short-term assistance. Another point is that you don’t need a bank account to use a credit card.
Option #4. Bitcoin Loan
Those who don’t have a bank account but are experts in cryptocurrency can take Bitcoin loans. This, however, is quite a risky option as bitcoin is not a stable currency. In addition, it is quite an expensive currency which value changes every day.
U.S. laws don’t provide any regulations for lending and borrowing Bitcoins. That’s why it is considered an illegal practice. Whenever you are scammed, you will not be able to protect yourself. What makes it more complicated is that Bitcoin lenders usually have their headquarters abroad. So, if you are new to the game, think carefully before you take a Bitcoin loan.
Option #5. Payday Loan
In case, you are taking a payday loan with no bank account required, you are asked neither to secure a loan by collateral nor to have a bank account.
This loan is designed for customers who have a bad credit score or miss eligibility requirements, for example, a bank account. This short-term kind of loan is quite dangerous. There are the chances that you will have to pay back in interest much more than you borrowed initially. Given the fact that payday loans are not legal in every U.S. state, be careful before you sign.
Make sure you know what you are getting yourself into when you take a payday loan with no bank account needed.
General eligibility requirements include:
- U.S. citizenship
- at least 18 years old
- living in a state where payday loans are not illegal
- regular income proof.
In order to apply, you need to meet a payday lender in person or find the company online, fill out an application form and get your payday loan in cash or by money transfer.
Hope you were able to find lots of useful information about the ways of getting a loan with no bank account and credit check. Things can get complicated if you don’t have a good credit history and a saving or checking account. Based on the alternative options above, compare different lenders that don’t require a bank account.