Is It Possible To Get A Payday Loan Without A Checking Account?

Most companies that offer paycheck advances require applicants to have checking accounts because it provides them an easy way to verify customers' income and quickly get paid when the loan comes due. According to the FDIC, however, about 10 million households in America don't have bank accounts. If you need cash fast but you don't have a checking account, you may still be able to take out a payday loan. Here are a few possible solutions to this problem.

Use a Savings Account

While a checking account may be preferred, some paycheck advance companies will still let you take out a loan if you have a savings account that can be debited. These companies will usually require that your savings account meet the same minimum qualifications as a checking account. For example, the account must be in good standing and have been opened for a minimum period of time (e.g. 3 months). Some may also require that your paycheck or government benefits be automatically deposited into this account so they know the money will be there when the loan comes due.

You have to be careful when using a savings account in place of a checking account, though, because the law restricts the number of withdrawals you can make from a savings account. Commonly referred to as Regulation D, account holders are limited to 6 withdrawals per month via a variety of methods including bank draft, debit card, and transfers to other accounts. If you use your savings account frequently, you need to keep an eye on the number of withdrawals you make to ensure the automatic debit the payday loan company submits on the loan due date will be approved for payment.

Look for Specialty Companies

For those that are completely unbanked (i.e. have neither a checking nor savings account), there are still options. Some specialty companies will approve you for a loan without any type of bank account. In exchange, though, you may be required to provide more information about yourself, charged higher fees, or both. For instance, most paycheck advance company don't do credit checks for traditional payday loans, but a company that will furnish a loan to a person without a bank account may pull the person's credit report to verify the person has a good repayment history.

These no-bank-account payday loans are almost always only offered by brick and mortar cash advance companies. Generally, all online payday loan companies require applicants to have bank accounts because the loan funds are deposited via ACH transactions. Therefore, it's best to call around to the loan companies in your area to locate one that will advance you money without requiring a bank account.

Get a Cosigner

A third option is to get someone who has a checking or savings account to cosign on the payday loan with you. One benefit of this option is you may be eligible for a higher loan since the paycheck advance company will usually combine your and the cosigner's incomes to determine the max loan amount. This can help you out of tight spot if you need more money than you would qualify for using only your income.

At the same time, if you fail to pay the loan off as agreed, the company will go after the cosigner. This can cause problems in your relationship with the individual. Therefore, you should be certain you can repay the loan as agreed before asking the person to do you this favor.

Securing a payday loan without a checking account can be challenging but it is possible. Contact a local lender such as Payday Express for information or ideas about resolving this issue.