Yes, there are some loans that won’t require the borrower to have a bank account. Typically, these types of loans are ones that are designed for borrowers with low credit scores. But whether or not the lender requires a bank account will depend on their specific eligibility requirements. Common lenders that may be willing to work with you even without a bank account include payday lenders, title lenders, and pawnshop lenders.
Having a bank account is a big part of becoming financially healthy and independent. Practicing good financial habits includes monitoring and tracking your purchases, budgeting, saving for the future, and maintaining an emergency fund. All of these things are exponentially easier if you have a checking and savings account.
So while you may be able to get a short-term, small-dollar loan without a bank account, it’s extremely important for your financial future to open one and learn how to properly manage it. It’s all a part of becoming financially independent. So if you don’t currently have a bank account, we would highly recommend opening one.
Opening a bank account is usually very simple. You can go to a storefront location, or sometimes even open one online or over the phone. Many banks may even allow you to open a checking account without an initial deposit. This means you could potentially open one for free. Although some will require a deposit to start your account.
Once you open your new account you can start using it immediately. You can set up direct deposit so your paychecks go straight into your checking account. Not having to worry about cashing checks or depositing physical checks can make life much easier. Instead of trying to cash a check with your birth certificate you can just deposit it directly into your bank account. You can also probably get savings accounts for free as well. This is a great way to start saving and build up your emergency fund to avoid small-dollar loans in the future. Which is a big step on your financial journey. Emergency funds can help you pay for unexpected bills, medical bills, car repairs, children’s school costs, and more.
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