Getting Bad Credit Loans Without A Bank Account

While it may be possible to get a bad credit loan without a bank account, it isn’t easy. 

For people with poor credit scores, finding a good personal loan is tough—And if you don’t have a bank account it can be even more difficult. If you’re in this situation, it’s important to know that your options may be limited in terms of the type of loan you can get, the interest rates you’re offered, and the terms of the contract. You may still be able to find a safe loan that suits your particular needs, but it’s going to take a lot of research and effort. 

One of the main reasons why it’s so difficult to get a bad credit loan without a bank account is because lenders want to confirm your income and current bank account status to determine whether you can afford the loan in question. If they see that the monthly payments would be too large for your income, they likely won’t offer you a loan. It’s essentially just a way to ensure that you can pay back the money you borrow. 

The best thing you can do is figure out what you need in order to open a bank account. This will be the easiest way to start saving and budgeting, and may help you secure better loans in the future. Opening a bank account, saving, and budgeting are all important steps on the path to improving your credit. But if you need a loan in the short-term and you don’t have time to open a bank account, there may still be options available to you:

Pawn Shop Loans

A pawn shop loan is a secured loan that requires you to offer up a valuable item as collateral. These can be found at pawn shops throughout the country, and the amount you can get will vary depending on your collateral, the lender, and where you live. The way it works is fairly simple: you bring in an item of value (jewelry, electronics, etc.), the lender appraises the item to determine its value, they offer you a cash loan that equals a fraction of the total value of the item, you pay the loan back by a set date, they return your item. 

These loans can be risky because the lender is allowed to keep and sell the item if you aren’t able to repay the loan. That being said, you risk losing your valuable item any time you choose a pawn shop loan. 

Title Loans

Title loans work in a similar way to pawn shop loans, but on a larger scale. These are also secured, short-term loans, but instead of using a small item as collateral—you use your vehicle. This means that to be considered for a title loan, you’ll need to own a vehicle outright, and be able to offer up the title to the vehicle in order to get the loan. 

With title loans, the amount you get will be based on the value of the vehicle. When you apply for a title loan they’ll have someone assess your vehicle to determine the value, then offer you a loan that is a fraction of what the vehicle is worth. You pay back the loan by the agreed-upon date, then the lender returns the title and the loan process is over. If you aren’t able to repay the loan, the lender will likely repossess your vehicle and sell it to recover the loss. 

Payday Loans

A payday loan is considered an “unsecured” loan, which means it doesn’t require collateral. This is a short-term loan (usually only a couple weeks), that borrowers use to pay bills or expenses until their next paycheck arrives. Many payday lenders do require the borrower to have a bank account, but there are lenders out there that might not. 

Some lenders will offer payday loans to borrowers using a prepaid debit card. They might even provide the borrower with a prepaid debit card that has the balance of the loan on it. Finding a lender that will work with you if you don’t have a bank account might be tough. But if you search online or drive around and talk to storefront lenders, you might find one that can help. And since payday lenders typically deal with borrowers with poor credit scores, you may be in luck even if your score is less than perfect. 

The Bottom Line

The best way to increase the loan options available to you is by improving your credit score. A better credit score means better interest rates, repayment terms, and more favorable loans. There are plenty of resources for how to improve your credit score and manage your money in the CreditNinja Dojo! Check out all of our blogs for more helpful hints and tips.