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Guide to Personal Loans Without a Bank Account

Guide to Personal Loans Without a Bank Account
Jason Steele
Jason SteeleUpdated January 26, 2023
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
If you don’t have a bank account, it might be challenging to get a personal loan. Many lenders require you to have a checking account in order to take out a loan. But there are some ways to qualify for personal loans with no bank account. Read on to learn more about requirements for personal loans, and how to take out loans without a bank account.

Can I Get a Personal Loan With No Bank Account?

If you’re wondering, “where can I get a loan without a bank account?,” here’s what you need to know. Without a bank account, your personal loan approval odds will likely be lower. A bank account is typically a requirement for taking out a personal loan. However, just like getting a personal loan while unemployed is possible, so is getting a personal loan without a bank account. Certain lenders, such as payday lenders or title loan lenders, may be willing to offer you loans without a bank account. But these loans often have high interest rates and fees. Some of them also require collateral, such as your car, that the lender can seize if you don’t repay the loan. 

Why Do You Typically Need a Bank Account for Personal Loans?

A bank account is important for personal loans because lenders use it to get a picture of your financial situation. The amount of money in your bank account can help the lender determine how likely you are to make your payments and repay the loan in full. In short, they want to know how risky it is to lend to you and whether you might default on the loanThat’s why having a bank account is often one of the requirements for a personal loan, along with having a certain credit score, providing proof of employment and income, and having a low debt-to-income ratio.

Getting a Personal Loan With No Bank Account

If you don’t have a bank account, there are some things you can do that might improve your chances of qualifying for a secured or unsecured personal loanThese personal loan approval tips may help:
  • Check your credit score. The higher your credit score is, the better the chances that you might qualify for a loan without a bank account. 
  • Get quotes from multiple lenders. Explore personal loan options from a number of lenders to compare loan amounts, rates, and terms and conditions.  
  • Research the lender you’re thinking of working with. Always make sure that the lender is legitimate and reputable before applying for a loan. Read reviews from other customers and check with the Better Business Bureau.
  • Gather pertinent documents and information. Some lenders may ask for personal information such as pay stubs, proof of residency, your Social Security number, contact information, and proof of employment. 

Types of Personal Loans You Can Get With No Bank Account

If you need a personal loan and don’t have a bank account, there are a few types of loans that may be available to you.1. Payday loans. These are short-term loans for a small amount of money, generally $500 or less. Typically, you will need to repay the loan as soon as you get your next paycheck. Payday loans usually have very high fees. Recommended: Getting Out of Paying Payday Loans: Things to Know2. Car title loans. This is a secured loan that uses your car as collateral. To qualify for a car title loan, you will need a car title showing that you fully own the car. Car title loans usually have high fees and interest rates. You risk losing your car if you can’t repay the loan.3. Payday alternative loan. With a payday alternative loan, you take out a small loan — generally up to $2,000 — from a federal credit union. You may have anywhere from one month to one year to repay the loan. Unlike payday loans, payday alternative loans cannot have an interest rate higher than 28%, and the application fee is usually $20 or less. 4. Pawnshop loans. You use a valuable item like jewelry or an antique as collateral for this type of loan. You can usually borrow a percentage of the asset's resale value. The pawn shop holds your collateral until you repay the loan. Once you do, you get your item back. 5. Family loans. With a family loan, you borrow money from a relative and repay it in a time frame agreed upon by both parties. To avoid potential conflicts, you may want to stipulate the terms of the loan in writing. The interest on a family loan may be low, or even zero. Just be sure you can repay the loan on time so as not to damage family relationships.

Pros and Cons of No Bank Account Personal Loans

Getting personal loans without a bank account has pros and cons you should consider before applying. 
• These loans can provide you with access to cash quickly.• Many of these loans can have extremely high interest rates.
• A bank account is not required.• Some of the loans, especially payday loans, come with high fees.
• Some of the loans may not require collateral.• Your collateral may be seized if you don’t pay back the loan on time.
• These personal loans may be small.
• You could fall deeper into debt if you don’t repay the loan on time, due to the fees and interest rates. In the case of a family loan, you could damage your relationship.

The Takeaway

Getting a personal loan without a bank account can be difficult, and types of loans you could get may be expensive or risky. If you can, open a bank account before taking out a personal loan in order to have more loan options with better terms to choose from. If opening a bank account isn’t possible, there are no bank account loans you may be able to get. For instance, a payday alternative loan or a family loan might work for you. Whatever type of loan you chose, do the research before applying to make sure it’s a sensible option for you. And have a solid plan in place for repaying it.If you’re ready to apply for a personal loan whether you have a bank account or not, Lantern can help you explore your options. Just provide some basic information about yourself, and you’ll get offers from multiple lenders all at once to help find the best fit for your needs.

Frequently Asked Questions

Can I get a personal loan without a bank account?
What types of personal loans can you get without a bank account?
How do you get a personal loan with no credit or bank account?
Photo credit: iStock/Makhbubakhon Ismatova

About the Author

Jason Steele

Jason Steele

Jason Steele has been writing about credit cards and award travel since 2008. One of the nation's leading experts in this field, he has contributed to dozens of personal finance and travel outlets and has been widely quoted in the mainstream media.
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