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Yes, you are able to get a loan without a bank account. There are certainly forms of finance for which you will not necessarily require a bank account in order to be eligible – for example products such as title loans, payday loans and by selling items at a pawn shop. These are often options if you need quick cash and their terms may be more flexible. 

In other more traditional instances however, having a bank account is usually an indicator that your details are legitimate and have been confirmed by a local bank, therefore lenders will be more likely to approve your loan application. For short-term payday loans, having an open checking account will help your application and will give assurance to your chosen lender that you will be able to meet your repayments on time. 

Having a bank account is a definite requirement for more traditional forms of financing such as personal unsecured loans and mortgages. 


Why Is Having a Bank Account Helpful When Looking For a Loan?


You might have found yourself in need of taking out a loan. For lenders who are deciding whether to approve your loan application, it is desirable for customers to have a bank account for a number of reasons:

  • You have been validated by a bank and have confirmed important details such as your address, employment and credit history.
  • You have control over the incoming money you receive from wages and your outgoing spending on rent, bills and any credit cards you might have. 
  • When it comes to repaying your loan, many lenders have systems in place for automatic repayment whereby a monthly sum will be collected from your live checking account. This helps to make the repayment process as hassle free as possible. Therefore if you request dealing in cash, you may end up limiting your option of lenders.

Why Is Having a Bank Account Helpful When Looking For a Loan?

Reasons For Needing a Loan Without a Bank Account


There are a number of reasons why you might be needing a payday loan whilst not having a bank account:

  • Age: You might be a young person and have not yet set up a personal bank account. Once you begin earning a salary it is important to have a bank account for your employer to pay your wages into. 
  • International: You might be earning as a temporary worker or have recently moved to the US from abroad but have important expenses you need to cover. 
  • Relying On Partner: You might have had a shared bank account which you no longer have access to. If you relied on your partner and are now separated, you might need a loan to cover some expenses.

Setting up a bank account does not take long and it can be helpful to get your finances on the right track.


Where Can I Find a Bank Account?


If you are looking to open an account, there are government resources available to help you. You could begin by opening a checking or savings account – often this can be completed online or through a mobile app. You can also find the nearest bank in your area. 


Alternatives and App-Based Bank Account


You might find the prospect of signing up with a large bank daunting and not want to sign up with the required checks and onboarding process. You also might have had a previous application denied by a bank or are ineligible with a bank in your area.

Nowadays there are a number of alternative app-based banks which are easier to navigate when opening an account and do not require your banking history or credit rating. Therefore if you have bad credit or no credit at all you might be eligible to open an account. 


Are There Options For Loans Without Having a Bank Account?


Yes. There are other options of finance you can consider if you do not have a bank account:

Title Loans

If you want cash in hand, do not have a bank account but do have a car, a title loan could be an option for you. A title loan allows you to take out a loan secured against the vehicle that you own. If the car is in good condition, you will be able to borrow money and repay to the lender in installments. With a secured loan like this, it is essential to keep on top of your repayments as you risk losing your car if you miss them. 

Borrowing from Family or Friends

If you need quick access to funds and do not have an open bank account, borrowing from your family or friends could be an option. When taking a cash loan from a parent, sibling or close friend, the repayment terms of this kind of loan is likely to be more flexible and will not require credit checks associated with other loans. 

Always have the terms of your loan repayment written down and make sure everyone approves to avoid any relationships turning sour and prevent any conflict.

Pawn Shops

If you own items that you believe to be valuable, you could look at selling them to a pawn shop and receive cash in hand. The process is in person and involves having a product evaluated and an offer given. Commonly sold items include jewellery, art and family heirlooms.