Almost everyone has been in a situation where your paycheck doesn’t seem to last until the next payday. Being short on cash can put a real strain on you, so you may seek out a temporary solution or some way to get more money to carry you until your next paycheck.
One option is a payday loan. These short-term loans usually require you to have a checking account, but what if you don’t have one? The good news is some companies do offer payday loans with no checking account required.
Can You Get a Payday Loan Without a Checking Account?
Although your options might be more limited if you don’t have a checking account to deposit your payday loan into, it is still possible to get one without a bank account.
However, you may need to visit a payday lender in-person to get your loan. Online payday loans might be more convenient, but these applications will require banking information, and if you can’t provide that, it could result in an immediate rejection. And, if you’re not using a checking account, your lender will need to load your funds onto a prepaid debit card, which will require you to be there in person to pick up.
The requirements for getting your payday loan still don’t change – even if you don’t have a bank account. When you apply for the loan, you’ll need to provide some proof of income, and you’ll need to meet the minimum income requirement that your lender has.
Keep in mind that you still shouldn’t need to put up any collateral, regardless of whether you have a bank account or not. If a lender is asking you to put up the title of your vehicle or another item as collateral, you may want to move on.
Top 5 Options for Payday Loans with No Checking Account
While most payday loan lenders you find will require a checking account and offer no options if you do not have one, there are still a few companies that will consider your application if you do not have a bank account. Here is a review of five of those companies worth considering if you need a short-term loan but have no checking account.
You will notice most companies only operate in specific states; this is due to regulations. Many states do not allow payday loans or have restrictions that make it difficult for companies to extend loans.
1. Dollar Loan Center
Dollar Loan Center does payday loans a little differently. This company provides you with a way to borrow money for a longer term and with credit perks.
When you borrow from Dollar Loan Center, you can choose to take 15 months or more to pay it back. Loan amounts go up to $5,000, and the company will report your payments to the three major credit bureaus. You can build your credit by using these loans, which is a huge perk that can help you to avoid having to use payday loans in the future.
Dollar Loan Center has 52 locations in Utah and Nevada. You will have to go to a physical store to get money if you receive loan approval.
The company does have a few requirements you must meet to qualify for a loan. You must have a regular income, live in Nevada or Utah, have no pending bankruptcies, and be over 18.
Pros:
- Reports payments to credit bureaus
- Provides longer payback periods
- Loans up to $5,000
Cons:
- Only available in Utah and Nevada
- Will report defaults to credit bureaus
2. Moneytree
Moneytree is a financial service company. It offers payday loans without a checking account and provides services, including title loans and installment loans.
You can borrow up to $5,000 in a payday loan. Do note some states may have lower borrowing limits.
While you can apply online, if you don’t have a checking account, you must go to a physical Moneytree branch to get your money. There is also an option to get it on a prepaid debit card if you cannot make it to a physical location.
As with most payday loans, you can expect to pay high interest rates, usually in the triple digits. State laws will determine the maximum rates the company can charge, so it will vary depending on where you live.
To borrow from Moneytree, you must live in Nevada, Colorado, California, Washington, or Idaho. The company only operates in these locations. You must have proof of your income and be able to verify your phone number and address. The application process is simple and easy.
Pros:
- Up to $5,000 loans
- Offers other financial product options
- Prepaid debit card option for receiving cash
Cons:
- Only available in five states
- May have to visit a physical location
3. Regional Finance
Regional Finance is more widely available than some of the other companies on the list. It is available in 11 states:
- Wisconsin
- Virginia
- Texas
- Tennessee
- South Carolina
- Oklahoma
- North Carolina
- New Mexico
- Missouri
- Georgia
- Alabama
You must live in one of the 11 states to qualify for a loan. You also must go to a physical location to complete your application and secure your cash. The company has over 350 store locations.
You can pre-qualify for a loan online so that you don’t have to waste a trip to a branch. Borrowing limits range from $600 to $10,000. The company will check your credit as you must have a score of at least 580. You also must be at least 18 years old and be a US permanent resident or citizen.
One last thing of which to be aware of is Regional Finance does require you to secure the loan with personal collateral. The company explains that this requirement helps them to provide lower-cost loans.
Pros:
- Available in 11 states
- Online pre-qualification option
- Loans up to $10,000
Cons:
- Personal collateral required
- Checks credit score
4. 1st Choice Money Center
1st Choice Money Center provides loans in Utah and Idaho. You can apply easily online and get your approval back instantly.
You will have to show that you earn at least $1,000 a month. You also need to prove you have been with your current employer for at least three months. This is the most extensive documentation you will need to provide. The rest of the application process is simple.
The payday loan without a checking account option from 1st Choice Money Center is the signature loan. This loan program can provide you the option to qualify for money without having to show proof of a checking account.
Pros:
- Limited requirements
- Fast approval
- Online application option
Cons:
- Must provide documentation about income
- Only available in two states
5. TitleMax
TitleMax is a large company offering a different type of payday loan. Instead of securing your loan with a checking account, you will use the title of your vehicle. The company allows you to use a motor vehicle, motorcycle, or RV as collateral.
This type of loan is similar to the secured payday loans offered by other companies. The application process usually takes about 30 minutes.
You will not have to turn over your vehicle at the time of the loan, but you do have to provide the title and a copy of the key. If you pay back your loan according to the terms, you will receive the title and key back from the company. However, if you default on the loan, then the company can retain your vehicle as payment.
TitleMax offers loans in the following states:
- Alabama
- Arizona
- Delaware
- Georgia
- Illinois
- Kansas
- Mississippi
- Missouri
- Nevada
- New Mexico
- South Carolina
- Tennessee
- Texas
- Utah
- Virginia
- Wisconsin
The specific requirements to get a loan depend on which state you live in. Terms and conditions will also vary by state. In some situations, TitleMax will check your credit, so you may want to inquire about this before applying.
Pros:
- Can get more money with a title loan
- Wider availability
- Can continue using your vehicle
Cons:
- Have to put up your vehicle
- Application process is complex
The Risks of Payday Loans with No Checking Account
Payday loans always come with risks, but if you don’t have a bank account, those risks may be a little steeper.
VIDEO: Risks Of Payday Loans
More Predatory Lenders
While there are plenty of reputable and ethical payday lenders out there, there are also plenty of predatory lenders looking to prey on people in desperate need of cash. Unfortunately, the list of lenders who offer payday loans without a bank account can be slim, and not all of them are trustworthy.
Predatory lenders may try to target people who don’t have bank accounts by taking advantage of their personal information or charging unnecessary fees and charges as a way to get more money. Other predatory lenders may try and get you to put up your valuables or the title to your car as collateral since you don’t have a bank account, but this is another tactic that’s unethical. Since payday loans are unsecured and have high interest rates, they don’t require collateral.
This is why it’s crucial to ensure your lender is not only following state regulations but that they also have a great track record with the people they’ve served.
Heftier Fees
If you don’t have a bank account, lenders may view you as more than a “risk,” and they’ll make up for this by charging heavier fees and higher APRs. Although the interest rates for payday loans without a bank account may be astronomical, they’re almost unavoidable – but some lenders may charge higher fees than others.
The Costs of Payday Loans with No Checking Account
Any payday loan, whether you’ve got a bank account or not, can come with some high costs, such as:
- High APRs/Interest Rates: The APR for a payday loan can range anywhere from 391% to 521%. If you’re aiming to get a payday loan without a checking account, don’t be surprised if your lender charges close to 521% on that scale. Most lenders rack up the interest rate if you’re using a prepaid debit card rather than direct deposit. Calculating the interest rate is often done by dollar per a hundred dollars. So, if you have an APR of 400% and you’ve borrowed $100, you’ll owe $115 when you go to pay it back.
- Rollover Fees: If you can’t pay your loan back within two weeks or a month, your lender may allow you to “rollover” your loan and get additional time to pay it off. However, this also means you’ll be paying double the amount of interest you originally owed on the loan. If you owed a total of $115 before, you’d then owe $130 after the rollover.
- Activation fees: Not all lenders may charge an activation fee, but if you’re using a prepaid debit card, don’t be surprised if you notice a small fee for activating the card.
Alternatives to Payday Loans with No Checking Account
If payday loans are prohibited in your state, that doesn’t mean you can’t put some quick cash in your hands. Here are a couple of alternatives to payday loans that you can get without a bank account.
Title Loans
Similar to a payday loan, title loans are short-term, and typically only a couple of hundred dollars to $1,000 that you can get loaded onto a prepaid debit card. The major difference between payday loans and title loans is that title loans use collateral while payday loans don’t.
With a title loan, you’ll need a vehicle that you own outright, and you’ll need to have the vehicle title on-hand. When you take out the loan, you’ll give the auto title to the lender, who will hold onto it until you’ve fully paid the loan off.
If you’re unable to pay off the debt and you default on it, your lender can repossess your car, sell it, and cover the unpaid portion of what you owe.
Pawnshop Loans
Pawnshop loans are another type of secured loan, although you won’t be using a traditional lender to get one. As the name suggests, pawnshop loans come from pawnshops, and you can use a valuable item as collateral for your loan. If you default on the loan, the shop will keep the item and sell it.
There is one caveat with pawnshop loans: the item that you use as collateral must be worth more than you’re asking to borrow.
Final Words
Payday loans are a special type of financial product. They do come with high interest rates, and some can have excessive fees. Due to state regulations, it can be difficult to find this type of loan.
In most cases, you will need to have a checking account to secure a loan. However, there are a few companies that will extend you the option of financing without the need for a bank account. Some of these companies will require collateral to secure the loan.
You will have to complete an application, and all companies will require proof that you have a steady and secure income with a current employer. Most companies will not check your credit, but you should make sure to read the terms of the loan carefully to know the exact process.
A payday loan can be incredibly helpful if you have an emergency or a situation where you end up needing money before payday comes around again. Just be sure to do your homework and ensure this type of loan is right for your needs.