Without a bank account, you may be limited to short-term loans like payday loans, cash advances or title loans. And some of these options come with very high rates. But you’ll still need to meet other requirements, such as proof of income and employment verification.
5 lenders that don’t require bank accounts
While borrowers with bank accounts have considerably more choices, we’ve gathered five loan options that either don’t require a bank account at all or don’t require you to have a “traditional” account.
We researched dozens of lenders and cash advance providers to see which ones don’t require a traditional bank account — or any type of bank account at all — to qualify for a loan or advance. Some of the key factors we compared include:
Requirements to qualify
Rates and fees
Turnaround times
Minimum and maximum loan amounts
Minimum and maximum loan terms
State availability
Customer reviews
Other features or services offered
4 types of true no-bank-account loans
Here are four lending options that you may qualify for without any type of bank account:
Credit card cash advances. Credit card advances are a convenient way to access fast cash. But be prepared to pay $5 to $10 per advance or a 3% to 5% fee on the amount borrowed. Also, credit cards usually charge significantly higher APRs on cash advances than on regular purchases.
Vehicle title loans. Also called a title loan, this option allows you to borrow against the value of your paid-off vehicle. You can often take out 25% to 50% of your car’s value, though it’s possible to find loans for up to 90% of its resale price. Some lenders don’t require a bank account if you apply in person.
Pawn shop loans. Rather than sell and buy back your personal items, some pawnshops let you put up your valuables for collateral on a loan. With a pawn loan, you borrow a percentage of your item’s resale value — typically 25% to 60% — repaying it in cash, after which your items are returned.
Payday loans. Also called short-term loans, payday loans are small loans typically repaid within two weeks or a month. If you apply in person, some lenders let you pick up your funds in cash and then repay with cash, debit card or money order.
If you’re considering a short-term payday, title or installment loan, be aware that APRs can run high — often in the triple digits. And many borrowers find themselves in debt longer than expected due to repeat borrowing.
Hot tip: Hot tip: If you just need a small loan between paydays, consider a no-interest cash advance app instead. Cash advance apps never charge financing fees or interest on what you borrow, making them cheaper than short-term payday, installment and title loans.
How to get a loan without a bank account
Your lending options are much more limited compared to a borrower with an active bank account. But applying for a loan without a bank account is nearly identical to applying for a loan if you have one (minus the bank statements).
Here are the general steps to getting a loan without a bank account:
Check your credit. Knowing your credit score can help you find lenders that work with your credit rating. If you have a credit score above 670, you’re likely to have more options available.
Compare lenders. Before applying anywhere, compare lenders by rates, loan amounts, reputation and overall loan terms.
Gather docs. Once you find a lender, gather documents such as pay stubs for the past few weeks or months, proof of residency, valid ID, Social Security number and contact information. Lenders vary in what documents they require.
Apply. After submitting your documents to the lender(s) of your choice, wait for the lending decision.
Depending on the size and type of the loan you’re applying for, such as unsecured or secured, you may need more or less documentation. For example, a title loan requires your vehicle’s title that’s free of a lien. A legitimate lender will let you know the expectations and basic requirements of the loan.
Why do most lenders require a bank account?
A bank statement can give a lender a lot of information. When reviewing your application, lenders like to see how much money you have coming in and going out to get an idea of how you handle your personal finances. Many also require that you have a positive balance to qualify for a loan or advance.
Bank accounts also make it easier for lenders to transfer loan funds quickly. Most lenders use the electronic Automated Clearing House (ACH) to disburse your loan and collect repayments. ACH works only between bank accounts.
Beyond this, a bank account can show lenders that you’re financially healthy and not a borrowing risk. The less of a risk you are, the better the chance you have to get approved and qualify for competitive rates.
Getting a bank account expands your loan options
Without a bank account, your lending options are limited to mostly expensive payday loans, pawn shops, vehicle title loans and some cash advances. If you’re not comfortable with those or want to qualify for a larger loan amount or a less expensive option, like a personal loan, you may need to expand your opportunities with a bank account.
If you have a valid ID like a passport or driver’s license, a Social Security number or Individual Taxpayer Identification Number (ITIN) and some cash on hand, you can open a checking account at a financial institution. There are also some free bank account options you may want to consider.
Bottom line
It is possible to get a loan without a checking account, but your options are limited. Your three main choices are typically a vehicle title, payday or pawnshop loans. However, some cash advance apps offer free online accounts that can give you access to funds between paychecks. You could also get a credit card cash advance if you have an available balance.
But you may want to consider opening a bank account to give yourself more options. The most competitive personal loan lenders require borrowers to have an active checking account to verify your finances and have a place to send the funds. If you don’t have a bank account due to bad credit or a ChexSystems profile, consider opening a second-chance bank account.
Frequently asked questions
It's highly unlikely. Local banks and credit unions typically only provide loans to existing customers with active accounts, and online lenders normally view your banking activity as part of the application process. Furthermore, it's common practice now to have loan proceeds deposited directly into a bank account and have repayments debited from that account.
Unfortunately, if you don't have an external bank account, most apps won't let you borrow money instantly. You'll typically need to set up an account with the provider, get verified and establish a deposit history before qualifying for advances. By contrast, if you already have a checking account, it's easier for a cash advance provider to verify your information and recent banking activity.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf.
See full bio
I am receiving benefits through the VA each month, is there loans out there available?
Finder
AnnaAugust 16, 2018Finder
Hi Jeff,
Thanks for your question! It’s possible to get a loan if you receive regular benefits from the VA. You might want to visit our page on loans for people on a pension to get more details on how that works.
Hope this helps!
Anna
LucasAugust 12, 2018
I’m on SSI and get a ssi card I need a loan how can I get one
joelmarceloAugust 13, 2018
Hi Lucas,
Thanks for leaving a question on Finder.
If you receive a form of pension, whether it’s an employer retirement benefit or Social Security, you may find your loan options somewhat limited. Some lenders have stricter criteria for those receiving a pension.
It’s important to know that there are loan options out there. It’s even more important to know how to compare these options so you can choose the right loan for you. You may compare your options and find out how to apply from our guide called “loans for people on pension”
Cheers,
Joel
LaceyJuly 20, 2018
Is CarLoanGroup a safe prospect for auto financing?
nikkiangcoJuly 22, 2018
Hi Lacey,
Thanks for leaving a question on our page.
We don’t have any information for CarLoanGroup at the moment. However, if you are looking for car loan options, we have reviewed banks and online lenders to help you compare auto loans and find some of the best deals that might be available to you.
Hope this helps!
Nikki
TinaJuly 2, 2018
Im trying to get a loan for my dad he lives on his s.s i n only has direct deposit on his direct xspress card.no bank accoint
nikkiangcoJuly 2, 2018
Hi Tina,
Thanks for your message.
Getting a loan without a bank account may be restrictive. There are lenders that offer loans for people with disabilities however, these lenders will require you to have a checking account.
If you only have a prepaid debit card, compare the no-bank-account loans listed above. Payday loans can be a good option since these loans are designed for people who can’t qualify for a personal loan due to bad credit or a missing eligibility requirement — like a bank account.
Make sure that you meet all the eligibility criteria and read through the Terms and Conditions before making a decision on whether it is right for you.
Hope this helps!
Regards,
Nikki
ClaytonJune 28, 2018
Can I get an EMERGENCY loan if I can prove recent income but I’m in between jobs and bad credit?
joelmarceloJune 28, 2018
Hi Clayton,
Thanks for leaving a question on Finder.
Some lenders will consider you for a loan when you’re not currently employed, but you’ll need to be earning some form of income or have suitable income-earning assets to repay the loan. This could mean receiving welfare payments, being self-employed, or receiving a regular deposit into your account from investments.
Often, lenders will require access to your banking history and financial documents in order to verify that you’ll be able to repay your loan.
Five lenders that offer debit card loans and fast funding.
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I am receiving benefits through the VA each month, is there loans out there available?
Hi Jeff,
Thanks for your question! It’s possible to get a loan if you receive regular benefits from the VA. You might want to visit our page on loans for people on a pension to get more details on how that works.
Hope this helps!
Anna
I’m on SSI and get a ssi card I need a loan how can I get one
Hi Lucas,
Thanks for leaving a question on Finder.
If you receive a form of pension, whether it’s an employer retirement benefit or Social Security, you may find your loan options somewhat limited. Some lenders have stricter criteria for those receiving a pension.
It’s important to know that there are loan options out there. It’s even more important to know how to compare these options so you can choose the right loan for you. You may compare your options and find out how to apply from our guide called “loans for people on pension”
Cheers,
Joel
Is CarLoanGroup a safe prospect for auto financing?
Hi Lacey,
Thanks for leaving a question on our page.
We don’t have any information for CarLoanGroup at the moment. However, if you are looking for car loan options, we have reviewed banks and online lenders to help you compare auto loans and find some of the best deals that might be available to you.
Hope this helps!
Nikki
Im trying to get a loan for my dad he lives on his s.s i n only has direct deposit on his direct xspress card.no bank accoint
Hi Tina,
Thanks for your message.
Getting a loan without a bank account may be restrictive. There are lenders that offer loans for people with disabilities however, these lenders will require you to have a checking account.
If you only have a prepaid debit card, compare the no-bank-account loans listed above. Payday loans can be a good option since these loans are designed for people who can’t qualify for a personal loan due to bad credit or a missing eligibility requirement — like a bank account.
Make sure that you meet all the eligibility criteria and read through the Terms and Conditions before making a decision on whether it is right for you.
Hope this helps!
Regards,
Nikki
Can I get an EMERGENCY loan if I can prove recent income but I’m in between jobs and bad credit?
Hi Clayton,
Thanks for leaving a question on Finder.
Some lenders will consider you for a loan when you’re not currently employed, but you’ll need to be earning some form of income or have suitable income-earning assets to repay the loan. This could mean receiving welfare payments, being self-employed, or receiving a regular deposit into your account from investments.
Often, lenders will require access to your banking history and financial documents in order to verify that you’ll be able to repay your loan.
Cheers,
Joel