Are you wondering if you can get a payday loan without a bank account? Yes, there are credit companies that offer loans without asking for a bank account. Check out from our selected lenders where you can get a payday loan.
What You Need To Know About Payday Loans
- A payday loan term is usually less than a month as you are expected to repay the amount in your next paycheck. They are normally repaid one lump-sum on the due date.
- Payday loans do not necessarily require a bank account, you can receive the money in the form of a check, cash, prepaid debit cards where the funds are deposited directly to your debit card.
- Payday loan doesn’t affect your credit score or appear on your credit history since payday lenders usually don’t run a credit check.
- The costs of a payday loan are may be high due to high fees and hidden fees. However, the average cost of a payday loan is between $10 and $30 for every $100 borrowed. New York and New Jersey limit payday loan interest rates to 25-30%. Generally, if you can borrow money from friends and relatives, it is better.
- Some lenders may want to secure the loan by requesting a post-dated check from you.
- 1 What is a Payday Loan?
- 2 How Payday Loans Work
- 3 Online Loans That Do Not Require a Bank Account
- 4 Fees Associated With Payday Loans
- 5 How Do You Get a Payday Loan without a Bank Account?
- 6 Crypto Backed Bitcoin Loans
- 7 Quick Cash Loans from Pawnshops
- 8 What Are The Tips of Having your Payday Loan Approved?
- 9 What Are The Advantages of Payday Loans?
What is a Payday Loan?
A payday loan is an emergency cash loan that you can borrow when you temporarily run out of funds. It is a short term loan that is payable within two weeks. All you need to do to get the loan is to provide the necessary documentation and then you can receive funds. The money could be in the form of a prepaid debit card. When you cannot service the loan, you can extend the payday loan, a process known as rollover. This process is state-regulated and it has limits.
Many people are unable to pay back their payday loans for different reasons. One reason is that payday loans can be rather expensive. It is smart to not take out payday loans if you want to avoid sliding into a debt trap. This is a situation where one is forced to borrow money to repay the existing loans which can lead to bankruptcy.
How Payday Loans Work
When you need emergency cash before your payday, you may not have many options. Payday loans are short term and are meant to offer financial solutions when there is an emergency. The application is easy and fast and you have the loan approved. Before borrowing money, make sure you do a thorough research about the lender. Make sure to check the requirements, the application process, loan amount and what you will be charged. Once you have reviewed, then you can determine if the provider is the best. Typically, the providers can lend you between $50-$1000 while the repayment period is not more than 30 days. Terms and interest rates depend on the state where you reside.
Online Loans That Do Not Require a Bank Account
- PersonalLoans.com. They have partnered with a network of lenders by connecting them to borrowers. Personalloans.com services are completely free. Some payday loans are applicable without a bank account.
- Vivaloan. VivaLoan is online lending platform that compares loans in the market and connects borrowers with the best lenders.
- ZippyLoan. This is an online marketplace that connects borrowers to payday loan lenders. It matches borrowers to lenders based on their financial profile. Any credit you take that is below $1000 is considered a payday loan and is payable when you receive your next salary.
- CashAdvance.com. has a network of lenders and to take a loan, you need to fill and submit an online form. When they find a possible lender; they take you to the next step of sending a loan request. You are then required to review the terms of loan which you can accept or decline. Their payday loan maximum limit is $1,000.
Fees Associated With Payday Loans
Payday loans have many hidden fees which makes them relatively expensive.
- Rollover fees. When adding a new loan to an existing one, you not only have to repay the first loan but also pay initial loan fees and the fees for the new loan.
- Prepaid debit card fees. Prepaid debit cards have fees attached to them. Some of the costs include application fees, monthly fees and late payment fees.
- Late payment fees. When you pay a loan past the due date, late payment fees apply. Remember these are state-regulated.
- Returned check fees. Ensure that your check does not bounce since they are highly regulated.
- Bank fees. They apply in case you allow your account to overdraft. Therefore, ensure that you have adequate funds in your account.
How Do You Get a Payday Loan without a Bank Account?
You might be wondering if it is possible to get a loan without a bank account. Theoretically, the answer is yes, but in reality, it is not easy. Not having a bank account may be a red flag to creditors that you will not be in a position to pay. However, if you can show proof of income, then you are good to go. These loans are easy to get, but be very cautious not to mismanage them.
To get a payday loan without a bank account, you will need a prepaid debit card. In case you do not have a bank account, you can apply for a secured credit card. You can then deposit into this account that the card issuer will open for you. The amount that you deposit tends to be your credit limit. You can then use a secured credit card to take a loan. Some lending companies may give you a check that you can cash at check-cashing store, the issuing bank or at a retailer that cashes checks.
Crypto Backed Bitcoin Loans
If you hold cryptocurrencies such as Bitcoin, you can get cash advance from Bitcoin loans. You will use your Bitcoin as collateral, which means you don’t have to go though credit check. The average annual interest rate for getting a fiat loan against your cryptos is about 5%. Some of the platforms you can use for crypto backed loans include BlockFi and Unchained Capital. Customers of Fidelity Digital Assets can also get cash loans through its partnership with BlockFi. Take time to read our complete reviews of BlocFi crypto loans and Unchained Capital crypto loans.
Quick Cash Loans from Pawnshops
Alternatively, if you do not have a bank account, you can get a loan from a pawnshop. The truth is that this can be quite an unreliable source of emergency cash but at some time in life, they might be the only option you have. You can search online for a pawnshop in the US that is near you.
What Are The Tips of Having your Payday Loan Approved?
Getting a payday loan approved can be a hectic process. The following will help you ease the process.
- Credit score is not a factor but ensure that you meet all the other requirements.
- Some of the requirements include; you must be 18 years and above, a US citizen or resident. You must also be employed and have a permanent source of income.
- Ensure that you have cleared the other loans. You can use finance apps such as Meet Tally to get out of debt faster.
- Ensure that you have a steady and permanent source of income.
- Ensure that you are credit worth. Providers won’t advance you a loan if they suspect you will default in payment.
What Are The Advantages of Payday Loans?
- They can be easily accessible and obtained within a short period.
- They are easily to apply compared to normal loans.
- They maintain your credit score since they are not maintained in the borrower credit report.
- People with bad credit ratings can also get payday loans.
- Instant access to cash compared to banks.
- There is no need for security while applying for the loan.
- Physical appearance is not necessary since you can do the whole process online.
To conclude, it is important that you confirm the legality of the payday loans in your state. For example, payday loans are illegal in Georgia. Legislation on the payday loans are different depending on the state where one is residing. Also, before taking a payday loan, look for other means to raise the money. Payday loans have high costs and can make you to easily get into a debt. In addition, most of the companies that deal with loans are not reputable while those providing services online are not state regulated. Therefore, verify that the company you are about to use is trustworthy.