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Why payday lenders ask for your bank account details

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Here’s the reason payday lenders request your bank account information.

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.

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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
CashNetUSA Yes; checking account only Your account number and bank’s routing number Regular source of income
Check Into Cash Yes; checking account only Your account number and bank’s routing number At least 21 years old (19 in Alabama)
Ace Cash Express Yes; checking or savings account Your account number and bank’s routing number Regular source of income
Not currently in bankruptcy
OppLoans Yes; checking account only Your account number and bank’s routing number Meet the minimum income requirement
Paycheck deposited into a checking account
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
MaxLend Yes; checking account only Your account number and bank’s routing number Regular source of income
Not currently in bankruptcy

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.

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.

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14 Responses

  1. Default Gravatar
    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?

    • 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

  2. Default Gravatar
    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.

    • 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

  3. Default Gravatar
    JklDecember 10, 2018

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

    • finder Customer Care
      AshDecember 13, 2018Staff

      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

  4. Default Gravatar
    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?

    • 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

  5. Default Gravatar
    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?

    • Default Gravatar
      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

  6. Default Gravatar
    MikeAugust 25, 2018

    Will my bank be contacted

    • 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

  7. Default Gravatar
    CindyJuly 5, 2018

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

    • 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

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