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Why payday lenders ask for your bank account details

What providers do with that information.

Kellye Guinan

Updated Apr 27, 2020

Fact checked

There aren’t many payday lenders that don’t require your bank account information. This can be frustrating when you’re trying to find a quick loan to cover an unexpected expense, but there’s good reason for it. If you’ve been wondering why nearly every short-term lender asks for your account and routing numbers, our brief guide below has the answers.

Why do payday lenders need your banking details?

Payday lenders request your bank account details — generally your account number and routing number — for a number of reasons. One reason is to verify that you’re eligible, since most loans require you to have an operating bank account to qualify.

A lender will use this information to deposit your loan funds, and when it’s time to repay your loan, the lender will then debit that same account for your payment.

Just about all online lenders will require you provide your bank account details. Otherwise, they wouldn’t be able to transfer funds. If you’re applying at a store location, you may be able to give the lender a post-dated check. Though be aware: your check still contains your account and routing number on it.

You may also have to provide copies of your actual bank statements. If you do have to perform this step, the lender will likely contact you and tell you how you need to submit these statements, whether you need to upload them directly to your user account or if you need to email them to the service team.

What bank account information do payday lenders require?

Here’s a list of exactly what bank account details top payday lenders will ask for.

Beyond bank account information, most lenders will require you to meet some minimum eligibility criteria before you can apply. In most cases, you should be at least 18 years old, a citizen or permanent resident of the US and reside in one of the provider’s serviced states.

	Requests bank account information?	Details required	Other eligibility requirements
LendUp	Yes; checking account only	Your account number and bank’s routing number	Proof of income and a Social Security number	Read review
CashNetUSA	Yes; checking account only	Your account number and bank’s routing number	Regular source of income	Go to site
Check Into Cash	Yes; checking account only	Your account number and bank’s routing number	At least 21 years old (19 in Alabama)	Go to site
Ace Cash Express	Yes; checking or savings account	Your account number and bank’s routing number	Regular source of income Not currently in bankruptcy	Go to site
OppLoans	Yes; checking account only	Your account number and bank’s routing number	Meet the minimum income requirement Paycheck deposited into a checking account	Go to site
Blue Trust	Yes; checking account only	Your account number and bank’s routing number	Meet the minimum income requirement Not currently in bankruptcy Paycheck deposited into a checking account	Go to site
MaxLend	Yes; checking account only	Your account number and bank’s routing number	Regular source of income Not currently in bankruptcy	Go to site

MUST READ:

The Consumer Financial Protection Bureau (CFPB) no longer requires lenders to consider your ability to repay a loan. This could put you at risk of getting caught in a cycle of debt. Carefully review your finances and the loan cost to make sure it fits your budget.

Before you take out a short-term loan

Payday loans, installment loans and auto title loans come with high rates and fees which can trap you in a cycle of debt. Borrowers may find themselves taking out a second or third loan because they couldn't pay back the first one on time.

Consider alternatives before opting for a short-term loan:

Local resources. Government agencies, nonprofits and local charities often offer free financial services and help with food, utilities and rent for those in need.
Payment extensions. Talk with your bill providers about a longer payment plan or extension on your due date if you're behind on payments.
Side jobs. Today's digital marketplace offers the ability to more easily sell unwanted items, sign up for food delivery or drive for rideshare services.

Is it safe to give out banking details?

Yes, if you’re applying with a reputable lender. Reputable short-term lenders will not store your login details and should have a secure, encrypted page for you to submit your bank account numbers along with your other personal information.

However, this doesn’t mean there aren’t scams out there. Here are some quick tips to spot a bad lender:

The company requests your login details over the phone or through email.
The login page or application page is unsecure, and your browser shows a warning symbol.
The company claims you need to pay a fee before applying.

How to protect yourself from payday loan scams

What other information do payday lenders usually ask for?

Beyond your checking account information, payday lenders will often require you to provide other sensitive personal details. This can include your full name, date of birth and Social Security number. Many providers will also want information about your employment or income, your current residence and how to best contact you.

These questions are common with most loan applications, and because they reflect your unique financial situation, you should take care when applying. Make sure your lender has a secure application page with “https” in the web address.

If you’re submitting your information through a matching service, be sure to only provide your banking information or Social Security number to companies with limited sharing policies.

Available options if you don’t want to use a bank account

Unfortunately, there aren’t many payday lenders out there willing to extend loans to people without bank accounts. You’re unlikely to find a lender that doesn’t at least require a bank account to confirm your financial status, but that doesn’t mean there aren’t options. As long as you can prove your income, you may be able to find a lender that wants to work with you.

Provide collateral. An auto title loan or pawn shop loan can be easy ways to get small amounts of cash to cover an emergency debt without providing your bank account details. However, keep in mind that securing a loan with your car or other items can result in repossession if you fail to repay.
Visit a store location. If you’re able to visit a payday loan store location, you may be able to receive your loan as cash or as a check by simply providing pay stubs or other verified proof of your income.
Use your savings account. Some lenders issue loans to people who have a savings account but no checking account, such as ACE Cash Express.
Request a prepaid debit card. You may be able to find a lender that offers loans that can be loaded onto a debit card without request bank account information.

Bottom line

Most payday lenders ask for your banking details in order to transfer your loan funds into your account and debit your payment when it’s due. But you should still be wary of lenders that don’t have secure websites or request a fee to fill out the application. If you aren’t comfortable providing your bank account information, your loan options are limited but you do have alternatives to explore.

Frequently asked questions

Yes. According to the Consumer Finance Protection Bureau (CFPB), you’ll need to follow these steps to stop automatic transfers from your bank account:
1. Inform the company in writing and over the phone that you no longer give it permission to directly debit from your account.
2. Inform your bank or credit union that you have “revoked authorization” from the company. The CFPB has a sample letter you can use if you’re unsure how to do this.
3. Initiate a stop payment order.
4. Make sure your accounts are no longer being accessed by the lender; if they are, you have the right to dispute these charges and get your money back.

Thank you for your feedback!

Kellye Guinan

Kellye Guinan is a writer and editor with Finder and has years of experience in academic writing and research. Between her passion for books and her love of language, she works on creating stories and volunteering her time on worthy causes. She lives in the woods and likes to find new bug friends in between reading just a little too much nonfiction.

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18 Responses

HowlandAugust 19, 2019

Where can I get a small short term loan if I am on a pension and social security,having trouble securing one, please help

Reply
- finder Customer Care
  
  nikkiangcoAugust 20, 2019Staff
  
  Hi Howland,
  
  Thanks for your message. Sorry to hear you are having a little difficulty in getting a short term loan. Here is our page showing short term loans for people on pension. It shows a list of lenders accepting these type of loan application given your situation as well as tips on how you can apply. As a friendly reminder, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
  
  Hope this helps. Feel free to reach out to us again for further assistance.
  
  Best,
  Nikki
  
  Reply
JamesJuly 29, 2019

Is lending club a Good lending company

Reply
- finder Customer Care
  
  nikkiangcoJuly 29, 2019Staff
  
  Hi James,
  
  Thanks for your question. While we are a comparison website, we may not have all the available lenders listed on our page. Nonetheless, I can send this to our publishers and check if we can add this to one of our pages though. For now, you can find other resource sites to read a review about Lending Club. Meanwhile, we have a page that shares information on how to protect yourself from payday loan scams here.
  
  Hope this helps! As a friendly reminder, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
  
  Best,
  Nikki
  
  Reply
RhondaFebruary 9, 2019

I am trying to apply online for a loan. I have bad credit and on a fixed income. I came across a loan company that sounds good but in their application, they want my debit/credit card information and even my landlord’s information. The site has the padlock and starts with https. Is this legit?

Reply
- finder Customer Care
  
  JoshuaFebruary 18, 2019Staff
  
  Hi Rhonda,
  
  Thanks for getting in touch with Finder. I hope all is well with you. :)
  
  Most short term lenders ask their clients’ card information as well as other details that some people may be hesitant to provide. The reason behind this is they want to verify your identity as well as your bank account.
  
  If a website has a padlock icon next to its URL and starts with HTTPS (Hyper Text Transfer Protocol Secure), it means that it is using a secure mode where communications between browser and web server are encrypted. On the other hand, HTTPS means (HTTPS). For this reason, you can have a better idea of the level of security the website is having.
  
  If you want to be sure with your lender, you can research more about it and see what people are saying about them.
  
  I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
  
  Have a wonderful day!
  
  Cheers,
  Joshua
  
  Reply
RobertDecember 23, 2018

I still cannot find Ace Finance Bank on website or map at Google or Microsoft Edge. Is this a state bank? Thanks.

Reply
- finder Customer Care
  
  JoshuaDecember 23, 2018Staff
  
  Hi Robert,
  
  Thanks for getting in touch with finder. I hope all is well with you. :)
  
  We currently don’t have a review page on Ace Finance Bank. I have also made a quick search for it on the Internet and could not find their website. However, if you are referring to Ace Cash Express, you can click on this page to learn more. On that page, you will learn more about Ace Cash Express in terms of who they are, the services they offer, application criteria, and others.
  
  Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
  
  I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
  
  Have a wonderful day!
  
  Cheers,
  Joshua
  
  Reply
JklDecember 10, 2018

Which bank account (e.g. savings account) can apply for loans?

Reply
- AshDecember 13, 2018
  
  Hi Jkl,
  
  Thank you for contacting finder.
  
  You may use either your Checking or Savings Account as they are part of the Lenders’ eligibility requirements.
  
  There are also Lenders that can offer you loan options even if you do not have a bank account, you may check the list here. Kindly read first the Lender’s eligibility requirements as well as their Terms and Conditions to know if that is the suitable option for you.
  
  I hope this helps.
  
  Please do not hesitate to reach out again to us if you have additional questions.
  
  Cheers,
  Ash
  
  Reply
ChadOctober 16, 2018

I have been approved for a loan from Million dollar loans. But they asked for my mobile banking information such as my log in user name and password. I was immediately skeptical. Is that a common practice or a scam?

Reply
- finder Customer Care
  
  BellaOctober 17, 2018Staff
  
  Hi Chad,
  
  Thanks for your inquiry.
  
  Yes, it can be a common practice if you applied with a reputable lender. Most lenders ask for your banking details in order to transfer your loan funds into your account and debit your payment when it’s due. There are also lenders will often require you to provide other sensitive information like your full name, date of birth, and Social Security number. You may check if the lender or an institution is legit or not by checking them through the Better Business Bureau’s official page.
  
  For a guide on how to spot a loan scam, please click here.
  
  I hope this information helped.
  
  Kind regards,
  Bella
  
  Reply
CuriousjasoninvaSeptember 7, 2018

I am trying to get a personal loan and the person on the phone has asked me for my username and password to my account. I feel like this is a scam. Is it?

Reply
- joelmarceloSeptember 7, 2018
  
  Hi there,
  
  Thanks for leaving a question on finder.
  
  Payday lenders may request for your bank account details generally your account number and routing number for a number of reasons. One reason is to verify that you’re eligible, since most loans require you to have an operating bank account to be eligible.
  
  Reputable short-term lenders will not store your login details and should have a secure, encrypted page for you to submit your bank account numbers along with your other personal information.
  
  However, this doesn’t mean there aren’t scams out there. Here are some quick tips to spot a bad lender:
  
  – The company requests your login details over the phone or through email.
  – The login page or application page is unsecure, and your browser shows a warning symbol.
  – The company claims you need to pay a fee before applying.
  
  Trust your gut. If you don’t feel comfortable with a lender asking your banking details, move on and go with reputable lenders instead.
  
  Cheers,
  Joel
  
  Reply
MikeAugust 25, 2018

Will my bank be contacted

Reply
- finder Customer Care
  
  CharisseAugust 25, 2018Staff
  
  Hi Mike,
  
  Thanks for reaching out to finder.
  
  In some cases, lenders, although not all, might contact your bank to verify your bank account details. You can also directly ask your lender if their verification process would include contacting your bank.
  
  Hope this helps.
  
  Cheers,
  Charisse
  
  Reply
CindyJuly 5, 2018

Should a loan company ask you for your login information to deposit funds in your account

Reply
- finder Customer Care
  
  nikkiangcoJuly 5, 2018Staff
  
  Hi Cindy!
  
  Thanks for getting in touch.
  
  Yes, it is safe to give your log-in information to lenders that are legitimate and reputable. Please note, they will not store your login details and should have a secure, encrypted page for you to submit your bank account numbers along with your other personal information.
  
  To spot a scam, here are some tips:
  
  -The company requests your login details over the phone or through email.
  -The login page or application page is unsecure, and your browser shows a warning symbol.
  -The company claims you need to pay a fee before applying.
  
  Hope this helps.
  
  Cheers,
  Nikki
  
  Reply

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