Accessing a payday loan without having a banking account looked like a suicide a few years ago. A valid account has always been a basic requirement for obtaining extra cash from lenders and banks. However, the situation has changed over the years Payday loans without a checking account have turned into a new financial trend helping millions of people to cope with their budget emergencies.
A checking account was mainly a tool for the lender to evaluate your level of creditworthiness. On the other hand, we have some other ways to prove a borrower has a steady source of income. In other words, checking accounts are of no use for payday loan companies. Moreover, borrowers may opt for other ways to prove their capability to pay off the debt. They include saving accounts and salary statements from work.
Why Do Payday Companies Require a Checking Account?
One will hardly be surprised to find a checking account in the list of basic requirements when accessing a payday loan. It once used to be a handy tool for lenders to make a decision when reviewing a borrower’s application. A checking account makes it clear how much money you have. In other words, lenders have a clear picture of your paying capabilities. They can decide whether to approve your application or not.
Additional reasons to consider checking accounts include:
- Fast Money Transfer – it is easier for payday lenders and banks to transfer cash directly to your account. It makes the procedure more convenient and less time-consuming;
- Stable Financial Health – a checking account depicts your financial situation as well as capabilities to pay off the bill;
- Valid Source of Income – a checking account reflects the current financial situation as well as the amount of your minimum wage.
In the world of evolving technologies and financial trends, lenders can benefit from more advanced ways to evacuate borrower’s creditworthiness. Checking accounts are no longer useful. Companies use prepaid debit cards to provide cash as a part of payday loans without a checking account. Lenders can check your income using statements that prove the indicated wage.
Steps to Access Payday Loans without a Checking Account
If you need to access a loan without having a checking account, you will need to complete several simple steps. They are as follow.
Submit valid ID or driving license.
Submit documents proving you owna car, motorcycle or any other vehicle.
Start the application procedure online or live.
Get the Approval and visit the lender’s location to get your cash or prepaid debit card.
The Bottom Line
Payday loans without a checking account are a perfect way out for those who do not meet requirements established by banks. The only downside of this loan is a higher interest rate. In other words, such financial support will cost you more compared toconventional loans. On the other hand, it is the easiest way to get cash even with bad credit.