No Bank Account, No Problem
Are there really loans that do not require a checking? Yes, there is almost always an option to get money when you need it for an emergency, but some might be better than others. Let’s take a look at five of your choices if you have no bank to work, but need money now.
1) Loans From Family
This is the easiest, albeit potentially costliest method to get a loan without a bank account.
A loan from family or friends is easy to get and will not cost you much if anything in fees or interest, but you need to be careful. The true cost of a family or friend loan is the relationship itself. People are sensitive when it comes to their hard earned money and the last thing that you want to do is make someone feel taken advantage of. If you go this route, use caution. Here is what you need to do.
Treat your loan from that family member just like you would a loan from a bank. This means that you should get everything in writing and structure everything professionally. Spell out how much is being borrowed, how much is being paid back and when the payments are to be made. Get all of this information in writing and make sure that both parties have a copy, just in case memories get fuzzy. Also, when you make a loan payment, get it in writing. It might seem impersonal, but it could save you a lot of problems.
2) Pawn Shop Loans
Another option without a bank is a loan from a pawn shop. Pawn shops could care less if you have a bank account because they can work the entire transaction in cash.
To get a pawn loan, simply bring something of value into a pawn shop. Ideally, something easily portable and in demand, like jewelry or power tools. The pawn shop will then give you a portion of the value of your property as a loan, usually less than 30 percent. You take the money, pay for your emergency and then pay back the loan plus fees and interest on the agreed upon date.
A pawn loan can certainly give you the money that you need without a bank account, but there are high costs to consider. Pawn loan fees and interest are not cheap. They will charge interest, documentation fees and even charge you for storage of your item. In addition, loan values will be very low. Most pawn loans are for around 100 dollars, so they are not very useful for big emergencies.
3) Paycheck Advances From Your Boss
If you have full time employment, you may have a way to get money in an emergency without a bank account and without any loan fees or interest.
Many employers will allow you to take an advance on your paycheck. Since most payroll is a few weeks behind, this will be money that you have already earned, meaning there is little risk to your employer. All that it costs your employer is a bit of paperwork.
As with every other method of getting money without a bank account, there is a catch however. Namely the fact that you have to humble yourself a bit to your employer. Nobody likes to admit they need money, especially to a person who controls their future to some extent, like a boss. Use this approach sparingly to avoid being seen as unreliable.
Additionally, you should keep in mind that your next paycheck will be short. If you go this route, take your money but then make plans to handle the lesser paycheck you will be receiving shortly.
4) Vehicle Title Loans
A title loan is never a great idea, but if you do not have a bank account and need money, it is an option you may need to consider in an emergency.
With a title loan, you will need a paid off vehicle and a local cash store. Bring the vehicle in to a cash store and get a percentage of the value of that vehicle in the form of a loan. Many of these establishments can even give you cash on the spot, further limiting your need for a bank account. With a title loan, you get the money to handle your emergency and you can then pay back the loan over time.
The catch here is that the interest and fees are always going to be high with a title loan, so it is an expensive way to borrow. In addition, not having a bank account will mean that you need to visit your lender to make your installment loan payments and this can be inconvenient.
5) Credit Card Advances
A credit card advance is one of the most expensive ways to use a credit card, but it might be an option should you find yourself in a bind.
If you have a credit card but do not have a bank account, you can simply use the PIN provided by your credit card company to withdrawal money from any ATM. Keep in mind that there will be fees involved and your interest rate will typically default to the highest allowed by your agreement. Also, your cash withdrawal limit will almost always be less than your available credit. For example, you might have 1000 dollars in available credit, but 600 dollars might be all that you can use for a cash advance.
If you do not have a credit card, but have decent credit, securing one is a simple matter of filling out a short online application. If approved, you may be able to get your card number and use your account immediately. Otherwise, you will have to wait for a physical card which can take several days to a week. One way to get around that is to ask your card provider to overnight your card for a fee of course.
Time To Get A Bank Account
Once you have handled your emergency, by getting your loan without a bank account, you should address the biggest problem in your financial life. Not having a bank account. Stop suffering through the inconvenience.
Not having a bank account, particularly a checking account, is a major problem, but one that you can rectify. Even if you have had your problems with banks in the past, everyone deserves a second and sometimes even a third chance. Here is what you need to do.
Opening A Second Chance Checking Account
If you have had a checking account in the past and things went bad, you will have to do a little work to set things straight. Most major banks will not touch you. That simply means that you will have to open a “second chance” checking account.
A second chance checking account will usually come with harsher terms than a mainstream checking account, but the effort will be worth it in the end. Check out a website like Nerdwallet for a list of banks in your state that offer these accounts. Your options will be limited, but you should be able to find one close to you. If not, you can use just about any account and bank online.
Second chance accounts will likely have higher opening or minimum balance, higher fees and stricter terms, but they will get you the banking experience to get your finances back on track. After a year with a second chance checking, you should be able to open an account with a normal bank, enjoying all of the perks that come with them.