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How to get loans without a bank account?

Getting Loans Without a Bank Account

Updated on October 12, 2022


Can you get loans without a bank account? If you don't have a bank account, you probably won't get an unsecured loan. But, with secured loans there is a possibility. Many people think it's impossible to even get an installment loan or title loan without a bank account. Fortunately, this is not the case. The truth is, there are loans which don’t require you to have a checking account with a bank. It’s better to know about such loan options ahead of time so that you find it easier to get the money you need and can quickly get away from the lengthy process of opening a bank account.

No Bank Account? No Problem!

There are many people - and perhaps you are just like this - who feel the need to be mobile, or who do not like the idea of keeping their money in a bank. Underbanking is a common practice with nearly 20% of Americans, whom in spite of having a bank account, rely on other means to manage their finances instead of more traditional financial services. If not having a bank account makes you feel left out in the cold then let us tell you that more than half of the residents who live in the United States are living from paycheck to paycheck, and around 7% of Americans don't have a bank account of any kind at all. If you think 7% sounds like a small number, that means that up to 3,550,000 people in the United States do not have a bank account.

Reason to be Unbanked or Underbanked
You might be wondering why having a bank account is a prerequisite to taking out a loan by most lenders. The reason is quite simple. A majority of lenders lend money when they think they will get their money back. Having a bank account gives them some reassurance to get payments on time. Also, when you borrow with an unsecured loan and don’t have a bank account, lenders tend to worry more about getting paid back. This behavior of lenders is quite acceptable, but what is not acceptable is that banks often charge a fee for not having enough money in an account. This doesn't make much sense to us either; the bank notifies you that you don't have much money, so they charge you a fee for not having enough money? Besides, not having enough money to keep an account was the most commonly cited reason for not having a bank account according to the FDIC National Survey of Unbanked and Underbanked Households, 2015.

Can I get a Loan without a Bank Account?
Many who need loans with no credit check or a cash advance loan online but do not have a bank account can secure a loan using only their pay stub and social security card. So, if you have a verifiable work history with pay stubs and a social security card, that could very well be enough to get you a short-term loan with bad credit. Most alternative lenders make all possible efforts to make cash available to those who are in need and can repay using their most preferred payment channel. There usually isn't a credit check and instead investing that time to make it easy for you to pay off your loan. At any point, if you feel you can pay off your loan in full, you don't have to worry about pre-payment penalties too!

Get Car Title Loans without Bank Account
Now that you know you have options to get a loan even without having your bank account let’s dive into understanding the easiest one to secure, an auto title loan. As we mentioned earlier, lenders look for some assurance that they won't lose their money, having a collateral loan can make less of a risk to your lender. A title loan is one kind of secured loan that uses the clear title of your vehicle and your ability to repay as collateral. Since the collateral is your car’s title rather than the vehicle itself, you can keep driving your vehicle around while you’re repaying your loan. You can also get a title loan with bad credit if your car has enough value in it to get you the money you need. Many people are unable to get a personal loan due to an insufficient credit score or absence of a traditional bank account, therefore finding a car title loan is the best option to get their short-term financial needs fulfilled.

How are Repayments made Easier?
Once you’re approved, there are the various payment methods to choose from that allows you to repay with low, fixed-rate payments due on your pay dates. While you make your monthly payments, you can keep driving your car without letting anyone know about that fact that there is a lien on its title. Once your loan is paid off, the lien on your car title will be released, and most lenders don’t charge any penalties for paying early, you can repay the entire loan amount anytime sooner than the end of the loan term.

If You Don’t Have a Clear Title?
If you are one of those who doesn’t have a clear car title, you can still qualify for title equity loans in Arizona. In this case, lenders determine your loan amount based on the equity of your vehicle. Your car's equity is nothing but the difference between the amount owed on the car and the amount your car is worth. Although there are many possible ways to get cash, you should always borrow within your means. Decide how much you need which may be less than the maximum amount for which you are eligible so that you can pay off your title loan fast.

How Can I Apply for a Loan without a Bank Account?

Getting a loan without a checking account today is now just a matter of knowing the right options and making the right decisions. If you have a car but don’t have an account with any of the banks, auto title loans can save you from stressing about your unexpected bills.

Although it is possible for you to have a loan without a bank account, the fact is that you will always have more options to get cash with a bank account. To get started with CASH 1, you'll need to have an open checking account. You have the option to either fill out our online application form, call us or visit any of our store locations in Arizona or Nevada. After completing the loan application procedure, one of our friendly loan officers will work out a sizable loan amount and term that can fit your budget.

Photograph of author Joseph Priebe

Joseph Priebe

Joseph Priebe takes pride in assisting audiences with his articles to help them make sound financial decisions.

With over ten years of experience writing financial content his goal at CASH 1 has always been creating engaging and easy-to-digest information for anyone searching for immediate or long-term monetary solutions.

When Joseph is not writing about personal finance, you can find him photographing the Southwest United States with his 4x5 Graflex Crown Graphic camera. He is based in Phoenix, Arizona.