Loans

Do I Need A Bank Account to Get An Installment Loan?

In this day and age it would be tough to manage your finances without having a bank account. It’s not impossible, but it certainly wouldn’t be easy. 

Having a bank account has several advantages, like helping you track your money, making budgeting and saving easier, and helping to show lenders that you are a reliable borrower. Unfortunately, there are many people who don’t have bank accounts. 

So what does this mean for getting a loan, and more specifically, a personal installment loan?

If you’re in a situation where you need a quick personal loan like an installment loan, but you don’t have a checking account, read on to learn more about what your options are. 

What exactly is a personal installment loan?

This is a type of personal loan that a borrower repays over time, through monthly payments or “installments.” A personal loan is any loan product that a borrower uses to pay for personal expenses, bills, or anything else that is not business related. 

A personal installment loan is considered an “unsecured” loan, which means that borrowers don’t need to offer up any collateral in order to get approved. With unsecured loans, the lender issues money to the borrower based only on their credit history and promise to repay the debt. 

Usually, personal installment loans allow customers to take out more money than other short-term personal loans. Sometimes, depending on the borrower’s credit history, they can get upwards of several thousand dollars. This makes personal installment loans a better alternative if you need a lot of cash in a hurry. 

Repaying these loans is also better for customers than other options like title loans and payday loans. With a payday loan, borrowers generally need to repay the entire loan amount plus interest and fees within two weeks. But for personal installment loans, borrowers may get up to a couple of years to repay the loan in some cases. 

Typically, personal installment loans are considered to be a safer and more affordable alternative to payday loans, title loans, and pawn shop loans. If you can get approved for one, it will likely be easier to repay, and cheaper in terms of the APR and additional fees. 

Who can get approved for a personal installment loan?

These loans are designed for borrowers who have less-than-perfect credit scores. If you have a low credit score because of your borrowing history, there’s still a chance that you could be approved for one. 

Luckily for people with poor credit, lenders who issue personal installment loans usually consider more than just a credit score. Other factors that they will likely consider would be your income, your overall ability to repay the loan, your employment status, and the current state of your bank account. 

Can I get an installment loan without a bank account?

While this isn’t an easy “yes or no” answer, it is unlikely that you would be able to get a personal installment loan if you don’t have a bank account. Many lenders these days will only send funds through direct deposit, so if you don’t have a bank account they can’t give you a loan. 

That being said, you may be able to find a lender that’s willing to work with you. You would need to call or visit the lender in person to discuss their policies and find out if they could lend to you.

If you’re able to prove that you have a steady income and you have the ability to repay the loan and fees in full, then they may decide they can work with you. It may be difficult to find a lender like this, but it isn’t necessarily impossible. 

The best thing you can do for yourself and your financial future, is to open a checking and savings account with a reliable banking institution. This is the first step in better managing your money and preparing for the future. 

How Can CreditNinja Help?

Once you complete the first step in your financial journey of opening a bank account, you will open the door to getting bigger and better financial products. The next step to getting the fast cash you need is to apply for a personal installment loan from CreditNinja. 

CreditNinja offers quick and reliable personal loans, as well as an online application, funding, and repayment process. With a personal installment loan from CreditNinja, you can get the funds you need by the next business day once you’re approved. 

Apply today, and get the cash you need at ninja speed.