The easiest way to get a payday loan without a bank account is to research lenders and find one that’s willing to work with you despite not having a bank account. Depending on the lender, you may still be able to get a cash loan without having a checking or savings account.
While many lenders now tend to require borrowers to have a bank account, there may be some that don’t. The reason lenders want their customers to have one is to be able to check their bank account status, see if they have a regular income, and find out if the account is in good standing. These are all indications of whether the customer is able to repay the loan.
You should be aware though, that if a lender is willing to work with you even without a bank account, they may not be as concerned with being repaid on time. This could be because some predatory lenders make more money when borrowers can’t repay the loan. This is due to a process called “rollover.”
A rollover means that the lender allows you to extend the repayment period which gives you more time to pay back the loan. The problem is that by extending the payment period you’ll likely pay more interest for the new term, as well as additional fees and charges for not paying on time. These additional fees and interest charges make it difficult to ever pay back the loan. This often leads borrowers into what is known as a “debt cycle.”
A debt cycle means that you’re in a continuous cycle of not being able to pay off the loan by the due date, so you only pay a small amount and roll it over to a new term. Borrowers who roll over a loan tend to do it several times. And by the time they pay it off completely, they’ve paid much more than what the initial loan was even worth.
This is why we recommend opening a checking account with a bank or credit union. It will open you up to new and better loan products in the future.