If you do not have a bank account and therefore no direct deposit trying to get a cash advance online is going to be near to impossible. There are several reasons why this proves to be difficult whether as an online transaction or a cash advance lender from a store location.
Why cash advance online will want a borrower to have a bank account.
If you are new to the cash advance industry or just want to understand how it works, a bank account is a very important part of the approval process. A cash advance lender will not do a credit check history on an applicant, but will want to view their bank statement. What can a bank statement tell a lender? A whole bunch!
For starters, having a banks statement will show that you have money coming in. A direct deposit will verify to the company how much comes in and how often. This is important to short-term loan lenders. The loans are only set to be out for a couple of weeks depending on your pay cycle. A cash advance online is a no collateral loan, so a company needs to have this information. Without a bank account there is very little you can do to prove to an online lender that you have a steady income. A borrower wants to be able to trust a lender, and with these loans being high risk, a lender will want to trust the borrower.
Will a cash advance lender at a “brick and mortar” location lend to someone without a bank account?
If you find a lender who will, you may be working with a predatory one. You will not need a bank statement to get a loan from a store location, but you will need to sign over a check. Having a check is proof and can verify your bank account. This signed check will be held by the lender and use it to pay off your balance. If you pay off your account early at the store, you will “buy back” the check and dispose of it yourself.
No matter which way you turn for a cash advance a bank account is extremely important. Some people do not believe in holding money in banks. It is their prerogative to handle their finances as they choose, but when it comes to getting help with finances, it will be difficult.
Without any type of credit or bank account, an individual has limited cash resources. A bank loan of any type will be impossible. Cash advance and payday loans will be limited to predatory lenders. So what other options would one have? An individual will need to find a friend or family member who will be willing to lend money, or have something of value to pawn. The loan amounts are limited, but possible.
It may behoove cash only individual to express concerns to a credit counselor in order to find out what minimal bank involvement can be done in order to get some security with finances. Word of mouth is not what it used to be decades ago. Dealing with financial institutions are daily occurrences. Ask lots of questions and make a plan that fits your situation in order to protect your future financial situation.
I am a Blogger, Web Content Writer, Teacher, Mom. A woman of many hats. As an elementary teacher, I had always encouraged my students to write more. I find myself falling back on my own teaching techniques to share what I know about building and rebuilding personal finances.