Borrowing Options Without a Bank Account


Why is it so hard to get a loan without a bank account? 

When you apply for a loan, lenders may ask for your bank history, as it helps them to verify your income and will give them an idea of whether you have the income to keep up with repayments. 

Without a bank history to verify this, lenders can find it difficult to assess the risk of lending to you. Lenders need assurance that you will repay the loan, without any statements to prove that you can manage payments it can be harder for them to determine if you are eligible for a loan. 

Those who offer personal loans may also need you to have a bank account, as this is where funds are deposited and where your repayments will come from. However, for those without a bank account there are still options, although it is simply better to open a bank account. CreditNinja shows how to get a loan without a bank account, and while it is difficult it is still doable. 

Does every lender require you to have a bank account?

Having a bank account is not always a requirement to get a loan, however, lenders typically require this, and if they do not, they may offer subprime loans. This means that loans will carry a high-interest rate and fees that are marketed to borrowers may have a hard time repaying debt, i.e. they may have a low-income or bad credit. 

Certain types of loans and credit cards can be useful for these borrowers, but any other type of subprime loan is best avoided. 

What loans can you get without a bank account?

There are a select few options out there for those who do not have a bank account. While these options are still viable, we urge they be avoided if at all possible. Opening a bank account is simply the best route you can take, as it will be the easiest way to start saving, budgeting, and it can help you to secure better options for loans in the future. 

Yet, it is not always immediately possible for everyone and if you need a loan in the short-term, and you do not have a bank account there are three types of loans you can seek out; pawn shop loans, payday loans, and title loans. 

Payday loans and title loans.

These are options for those in dire need of financial assistance with no time to open up a bank account. If you cannot borrow from a friend or family member, your last resort can be to take out a car title loan or a payday loan. 

These types of loans are far from recommended as the costs and financial risks they come with are high. However, if you do need to take these types of loans out, you need to know what you are getting into, so you have the best chance to protect yourself, thus understanding the costs and what it takes to repay them. 

Title loans come with some red flags including High APR’s, and Equity matters meaning that the amount you apply for depends on how much equity you have on your vehicle, it can range from $100 to $5,500 typically. And also the potential for repossession if you do not pay your loan back as agreed. 

Payday loans also have red flags, these include that they are small, meaning generally $500 or less, they come with high fees meaning that a two-week payday loan can equal an APR of almost 400%, as well as becoming potentially threatening to spiral you into debt. If you can’t pay it back quickly, the fees can add up quickly and make your existing problems continue. 

One other option is for a payday alternative loan. These are a short-term small-amount loan that is offered up by a federal credit union, they have an interest rate capped at 28% typically, and the application cannot be more than necessary. You can apply to borrow up to $2,000 and repayment terms may range. 

Pawn Shop Loans.

Alternatively there are pawn shop loans which are secured loans requiring you to offer up a valuable item as collateral. These can be found at pawn shops throughout the country, and the amount you may be eligible for will depend on your collateral, the lender and your location. 

These loans can be fairly high risk, and the lender can keep the item if you cannot repay the loan. 

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