You need a personal or business loan to get you out of a
bind. If you have a bank statement and get your approval,
then the money will be sent to your account. However, if you
don't have a bank account, this issue might become a tad bit
more troublesome.
There are a ton of reasons for not having a bank account.
You may be going through financial difficulties, you may
have had your account closed, or you haven’t had the chance
to open an account yet. Regardless of the reason, many banks
are reluctant to give you a
personal loan
if you cannot provide them with a bank statement.
Still, while opening an account may seem the only logical
way to go around it, you don’t always have to commit to a
bank just to take out a loan.
The Connection between Bank Statements and Loans
Let’s say that you want to take out a loan from a bank, but
you are turned down because you do not have a bank account.
Obviously, you’re baffled; why do you need a bank statement?
Can’t they just give you the money right away?
Well, bank accounts are not necessarily used just for
transferring the money; they are practically a mirror of
your finances. Nowadays, everyone gets their pay into their
bank account. And everyone uses their bank accounts to pay
their bills.
So, at this point, you might understand why banks may care
about this particular aspect. By looking at your bank
statement, they will be able to see proof of your income, as
well as your reliability when it comes to paying your
monthly debts.
Conventional banks have some strict rules – and they cannot
take any chances. They need more than your verbal statement
of “don’t worry, I can pay.” They need actual proof, and
that evidence is visible on your bank statement – which is a
summary of your account activity.
Where Can I Find Loans without Bank Statements?
The methods for getting a cash loan with no bank account may
not be the ones you would usually go for – but they are
beneficial for these particular circumstances. Here’s what
you could go for if you are looking to escape the bank
statement:
-
Payday Loans
If you don't have a bank account, the chances are that you
might not need one only because you do not have that much
money. You receive your payment every month in cash or a
check, and there was never actually any need for you to
open up a bank account. You live paycheck to paycheck –
and sometimes, this might not even be enough.
Payday loans offer you the opportunity of taking out a
loan without worrying about a bank statement. They’ll need
some proof that you have a particular income every month
(for example, a pay slip), and they usually do not require
any collateral or
credit checks.
Many payday lenders will still ask for a bank statement,
so you may want to shop around first. They do this only
because it’s the easiest way to check for income, as well
as the fastest way to draft the payments. If the lender
doesn’t require a bank statement, they might ask for other
info to fill in the gaps.
-
Peer-to-Peer Loans
This type of loan allows two individuals to borrow and
lend money, without having to resort to a financial
institution to act as middlemen – which means you won’t
need a bank account.
Still, this will also depend on the parties concerned. For
example, if the “peers” are acquaintances, family,
friends, or people that you have been interacting with for
a while, then they will probably know how much you make a
month – and see that you will be able to handle your
payments.
On the other hand, if the “peer” doesn’t know how much you
make or how responsible you are with your payments, they
might ask for a bank statement or at least a pay slip to
prove that you have the means of paying. After everything
has been settled, both parties will sign a contract that
will make them hold onto the end of their bargain.
Depending on how the transaction is made, some of these
peer-to-peer loans may need a bank account – but only if
the lender is not there to personally give you the money.
Look for peers that can meet up with you to sign off on
the loan, and you won’t have to open up a bank account.
-
Car Loans
If you are looking to take out a loan for a car, then you
may be surprised to hear that while bank statements are
appreciated here, they are most certainly not a
requirement.
Dealers offering car loans don’t care what your proof of
income looks like as long as it’s there, in front of them.
Plus, when it comes to collateral, you could say that the
car itself counts as one. After all, if you are unable to
pay, then the lender will simply take possession of the
car and auction it to recover the money.
However, keep in mind that if you do not have a bank
account, you will be seen as a “risk” borrower. If your
credit is not great, then your browsing for loans for bad
credit with no bank account might prove a bit
troublesome.
It’s not necessarily because you will not receive the
loan. You will get it. However, you may get it at a higher
interest rate
– which means you will be paying a lot in extra in the
long run. The advantage is that the more you make timely
payments, the
faster you build your credit.
How to Apply For a No Bank Statement Loan
If your only option is to get loans without bank statements,
then you might be intimidated by the idea. Still, depending
on where you go, the process shouldn’t be any more difficult
than this:
-
Fill out the application form. Based on
this, you will be contacted by the business and offered a
quote.
-
Put together all your documents. Depending on your loan type, you'll need a copy of your
ID, proof of income, and insurance for the property.
-
Wait for approval from the lender. Bear in mind that it might take a while to have your loan
approved, depending on who you are dealing with.
Since you are not working with a bank, there might not be
much hassle for you. Lenders will process your documents
directly, and once they are sure that you can pay, they will
give you the money.
These discussions may be completed online, but if you do not
have the means of seeing your lender face to face, then you
may want to consider opening up an account. Sure, it will be
empty, but you’ll only be using it as a method for receiving
the money.
How to Be Careful
It’s no secret that there are many scammers out there who
only want to get away with your money. Plus, when you have
bad credit and start looking for unconventional methods to
get a loan, you prove to people that you are desperate –
which will make you a sure target for fraud.
There are many respected and trustworthy dealers out there
that could be real life savers – but only as long as you
make the right, documented choice. For example, when it
comes to payday loans, many people avoid legitimate
businesses simply because they have very high rates.
It’s best that you do your research on the lender before
opting for a loan. If it’s a payday lender, look for reviews
from people that used their services: are they any good? Did
they follow their end of the bargain? Do the comments seem
legit, or does it look like some robot wrote them? To avoid
being scammed, you should get your info from independent
parties.
Final Thoughts
There’s more to bank accounts than using them as “safe
wallets.” Your account tells people exactly who you are –
and the wealth is only a small part of it. It shows how
trustworthy you are, or how susceptible you are to debt.
Indeed, loans without bank statements have an increased risk
level and come with higher interest rates. However, it’s not
impossible to get them, even if you have a
bad credit score
– or proof of no credit at all.