Without a bank account, you may find it difficult to get a cash advance, including short-term payday loans. If you’re willing to pay high interest rates, however, there are several online and in-person lenders that offer cash advances to borrowers without a checking or savings account.
Can you get a payday loan without a bank account?
If you’re one of the roughly 14 million Americans who don’t have a bank account, you may wonder if you have options when it comes to getting a short-term loan. While many payday lenders require a bank account, others don’t, and you might be able to get a payday loan without a bank account as long as you satisfy other requirements, such as earning a certain minimum income each month.
However, many payday loans come with sky high interest rates, which can make them a bad deal if you’re already in a tough economic position. This is why it’s important to thoroughly research all your options before taking out any type of short-term loan.
Most payday lenders want borrowers to have a bank account because it allows them to pull funds from the account if the borrower defaults on the loan. The comparatively small number of payday lenders that don’t require a bank account will typically charge higher interest rates, and they’ll probably have more stringent requirements when it comes to verifying your income.
Requirements for a Cash Advance
Whether a payday loan is called a cash advance, check advance, or direct deposit payday loan, the application requirements are usually the same.
To qualify for a cash advance, you typically need to meet the following criteria:
- At least 18 years old
- Earn a certain income each month
- Be able to verify your income
- Have a bank account
7 Best payday loans with no bank account required
If you don’t have a bank account, you may still be able to borrow money from an online or in-person payday lender that doesn’t require borrowers to maintain an active checking or savings account.
1. Personal loan by Axos Bank
How it Works :
Complete an online application
Eligibility :
Credit score of 680+, DTI 45% or under, savings account that accepts Fedwire transfers
Cost :
6.5% to 25% APR, including a 5% origination fee
2. Personal loan by Regional Finance
How it Works :
Prequalify online, then pick up approved funds at a local branch.
Eligibility :
Live in a state serviced by Regional Finance, have a credit score of at least 580, be a US citizen or permanent resident, be at least 18 years old.
Cost :
Varies by state. Loans are secured by personal collateral to keep costs low.
3. CDFI loan
How it Works :
Apply online for $300– $2,000 and receive your funds on an ACH-capable prepaid debit card.
Eligibility :
Rhode Island, Massachusetts, Delaware or Florida resident, regular source of income, no current bankruptcies, unpaid child support or mortgages.
Cost :
10% to 24%, depending on the loan type. No fees.
4. Installment loan
How it Works :
Apply for $100 to $5,000 online which you repay over 15 months. Get your money in cash.
Eligibility :
Over 18, no open bankruptcies, regular income, access to Nevada or Utah.
Cost :
Varies by state
5. Payday Loans
This type of loan is designed to act as a bridge between paydays. You will have to repay the debt in one lump sum in a month or less. Depending on the laws of the state you live in, the interest rate on a payday loan can range from between 200% and 700%.
The good news is that payday loans typically don’t require a credit check or other background verification for approval. Instead, this short term loan option only needs proof that you have the income needed to repay your debt — with interest.
You can do a quick Google search for “local payday loans” to find offices near you. Note that most online payday loans require you to have a bank account where they can deposit the funds, so you’ll have to find a brick-and-mortar location to get the cash you need.
6. Title Loans
Title loans are available to consumers who own a vehicle outright and have possession of the car’s title. The lender will hold on to the vehicle title until the loan is repaid. If you default on the debt, the lender will repossess your vehicle and sell it to cover the unpaid portion of your loan.
If your need for cash is dire and you’re willing to take this risk, MaxCashTitle Loans is an online network that can connect you to lenders specializing in vehicle title loans and do not require a bank account.
To qualify, you must have a vehicle with a clean title to hand over to the lender, as well as proof of sufficient income to repay the loan.
7. Pawnshop Loans
A pawnshop loan is a form of secured loan. The item you bring to the pawnshop is the collateral for your loan. If you do not repay the debt, the lender can legally keep your item and sell it to repay your loan.
Most pawnshops will give you the loan proceeds in cash the same day you come into the shop. Remember that your item will need to be worth more than the amount you need to borrow.
Most pawnshops require a minimum 120% value-to-loan ratio, meaning that your item must be worth at least 120% of the amount of money you want to borrow. Search Google for “pawnshops near me” for a list of nearby options. Some may even publish their loan requirements on their website.
Open a Bank Account for a More Affordable Cash Loan
Online banks aren’t your grandpa’s financial institution. Virtual banks today can accommodate whatever reason you have for not opening a bank account. Your location does not matter because you can manage your account from your mobile phone or desktop computer.
Many of the top online banks — including TD Bank, PNC Bank, and Ally Bank — can have you set up with an account in five minutes or less with account minimums as low as $5.
Once you have your account in place, you can begin receiving direct deposit of your paychecks, benefits checks, or other recurring payment without paying any check processing fees. You can also apply for a loan through an online lender network.
These loans offer substantially more affordable rates than the options above. When you submit a single loan request to each network, your form will reach several lenders that partner with the network. If you qualify — and a bad credit score will not disqualify you — you could receive multiple loan offers to choose from within a few minutes of submitting your request.
How to Get a Loan with a Prepaid Debit Card?
Some local lenders provide a few different ways for you to receive your loan proceeds. If you apply in person, you can typically receive a check for your loan amount. Some lenders will pay out your loan amounts in cash, depending on how much you borrow.
The loan company may also deposit funds directly onto a prepaid debit card. These cards work like a checking account and debit card. You submit money to the card’s issuing bank, and the money stays in a secured account until you spend it by using your card.
Many lenders can initiate an electronic transfer from their bank account to your prepaid debit card account. In this case, you will typically receive your funds within an hour or so.
Not every private lender will offer this service. In some cases, you may have to pay a fee for the transfer.
How to get Loan easily with bad credit?
A payday lender offers the fewest hoops to jump through if you are looking for a quick cash loan. But, oftentimes in the financial world, easy also means expensive.
These loans qualify as easy to get because you will likely not need a credit check, bank account, or collateral for approval. Instead, you only need to provide sufficient proof that you can repay the loan in either 15 or 30 days.
In exchange for such an easy loan, the lender will tack on very high interest rates and a large origination fee to your repayment terms. This fee often covers the time and cost a lender invests in preparing your loan paperwork. The amount of the fee is up to the lender.
These fees add up quickly. But if you take five minutes to sign up for an online bank account, you can gain access to a wide array of loans that are just as easy to obtain — and far less expensive to manage.
The online lender networks listed above provide applicants with a loan request form that takes approximately five minutes to complete. Once you submit your form, the network does the rest.
This includes sharing your request with every direct lender that partners with the network. Lenders can make a loan decision within seconds, thanks to automated underwriting services. If you qualify, you could receive an email in a matter of minutes that contains multiple loan offers for you to choose from.
Payday alternative loans
We always recommend seeking other means of financing before considering payday or title loans due to the risks we just discussed. One of those options may be a payday alternative loan.
A payday alternative loan is a short-term small-amount loan that’s offered by a federal credit union. Here are some of the benefits of PALs.
- The interest rate is capped at 28%.
- The application fee can’t be more than necessary to cover the cost of processing the application ($20 or less).
- You may apply to borrow up to $2,000.
- Repayment terms may range from one month to 12 months.
Check with your local branch for further requirements and specifications.
Final Words
Without a bank account, your options are limited when it comes to cash advances and payday loans. While there are a few lenders that offer these types of loans, high interest rates mean it’s usually better to seek out alternatives.
