Can I Get a Loan Without a Bank Account?

Yes, it is possible to get a loan without a bank account, especially if you need money fast from products such as payday loans, title loans or money from a pawn shop – since you will not always need a bank account to be eligible for these. However, there is no doubt that having a…

loans with no bank account

Yes, it is possible to get a loan without a bank account, especially if you need money fast from products such as payday loans, title loans or money from a pawn shop – since you will not always need a bank account to be eligible for these.

However, there is no doubt that having a bank account shows your legitimacy as a potential customer, showing that you belong to a local bank who have verified your details and the credibility of having money going in and out of your account.

If you are looking for more mainstream finance in terms unsecured, personal loans or mortgages, then having a bank account will be absolutely essential and even for short term products such as payday loans, having a bank account will help you apply online and often be approved more quickly, but there are some ways around this.

Why Does It Help To Have a Bank Account If You Need a Loan?

It certainly helps to have a bank account if you are looking to apply for a loan or any financial product. After all, if you are employed and receiving money into a checking account and taking on other financial obligations such as paying rent, bills and credit cards, your bank account will be the central place for all these things. So for a lender who is trying to figure if you are a worthy customer, then sure, having a bank account is a good place to start.

Having a bank account shows:

  • You are a validated customer with roots – you have an address, a regular income and history with using credit
  • You are using to getting your wages paid into this account
  • Most lenders use ACH authorization and this allows for easy funding and collection of automatic repayments. If you are dealing with cash, this will be more manual and potentially limit the lenders that you could work with.

Can I Get a Loan Without a Bank Account?

Need a Bank Account?

If you are 1 of the 5.9 million households in the USA without a bank account, you can use the free resource here to get started.

Why Might You Need a Loan With No Bank Account?

Young – As a young person under 21 or under 18, you may not have set up a bank account for yourself just yet or have been relying on parents up to this point. Setting up a bank account does not take long and you should let it hold you back from getting access to quality and affordable finance. When you start working and earning money, you will need a checking account either way.

Spouse/Divorced – Perhaps you relied on your partner or no longer have access to the family bank account. In this case, you might be looking for ways to borrow money or to get access to finance. However, you may find other opportunities by setting up a bank account in your name to have more financial independence or seeking funds from family and friends.

International – From temporary or migrant workers to being a new citizen in the US, you may not have an official bank account yet, but still may need money for every day living, expenses or important purchases. You may find some useful options in our suggestions below.

What Are The Options If I Need a Loan Without a Bank Account?

Borrow from family and friends

Borrowing money from family and friends is always going to be a reliable option if you need money immediately and do not have a bank account. You will usually be able to receive money in hand from parents, siblings or close friends and there will not be any credit checks or application process, but rather a verbal agreement.

Hence the loan should be interest free with relaxed repayment terms. So it is always going to be a safe option, but be sure to make the expectations clear to avoid any conflicts.

Payday loans (consider stores)

Payday loans online are usually a common way to borrow money for people with emergency or different circumstances. Payday lenders are able to take a different view to the traditional banks and lenders and often provide a fast online solution. However, if you are undergoing the online process, this will require a bank account or checking account for funding to be put in and repayments to be taken out of.

However, if you go to payday stores (with more than 23,000 across America), this is a more traditional loan transaction where you line up, complete a form and get money in hand if approved. Hence going to a store could be a more viable option if you are looking for money without a bank account.

Auto and title loans

This type of loan allows you to borrow money secured against your car, bike or van that you own either on lease or outright. As long as the vehicle is in fair or good condition, you can borrow 25% to 50% of its value upfront and repay in monthly installments. This is known as a title loan, but be warned that you could lose your car if you are unable to keep up with repayments. But if you want cash in hand with no bank account, this could be an option if you have a car.

Pawn shops and brokers

Through pawn shops and brokers you are able to sell any valuable items you own and receive money in hand. This may be selling household items from books, jewellery, art or heirlooms, but the process involves the company valuing the item and giving you an offer to buy it there and then. It is rarely an online process and rather in store and is popular across the US with a lot of pawn shops in Nevada.

Co signer loans

If you have no credit and no bank account, you could use a ‘co signer’ loan which involves someone you know to act as a co-signer on your behalf. This could be a parent, friend or spouse who ‘agrees’ to cover repayments if you cannot. You are able to leverage their bank account, income and good credit to get the loan you need. You should always consider the risks and make sure the co-signer understands their responsibility in the loan transaction.

Consider an Alternative or App Bank Account

If you are put off by signing up for a bank account with a large bank like Bank of America or Wells Fargo, there are the new age apps and alternative bank accounts with far more relaxed checks and faster onboarding processes.

These alternative banks do not require proof of credit or previous banking history to be eligible and they do not use ChexSystems to check your data, so you may still be eligible despite not being eligible for a traditional bank account.

Last Updated on June 4, 2024 by Dana Leigh, Product Manager and Researcher

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