Getting Payday Loans with No Checking Account

Getting payday loans with no checking account is both challenging and risky. Payday lenders often rely on checking accounts in order to extend new loans. The checking account is a way of verifying your paycheck amounts, account balance and permanent residence. Anyone that does not have this type of account will find it easy to lie about their pay and leave town without a trace so they do not have to repay the debt. Since the lender is aware of these risks, it will be unlikely to extend the loan without significant cost.

#1 Verify Your Income

Payday lenders often verify your income through your checking account. They use your account to determine your average monthly balance and the deposits you make on a monthly, or weekly basis. Without the statements, they will need to verify your income through another method. You can bring a paycheck stub to the lender. If you get paid through cash or tips, you can bring a schedule of your tax return to show your annual income as verification. Without an official form of verification, a lender is not likely to extend your loan.

#2 Verify Permanent Address

A bank account is one way to track an individual debtor. When you do not have an account, you essentially live off the grid, making it possible for you to move, travel or otherwise evade attempts to collect. A payday lender needs to know where and how to find you if you fail to repay your loan. You must verify a permanent address, a workplace or other means of locating you in order to receive your loan.

#3 Provide Collateral

Not all payday lenders will require collateral. However, if you are unable to secure a loan without an account, consider offering collateral in order to get the cash you need. Nearly any asset can be used as collateral, including jewelry, a car or a stock certificate. It is important to note you will lose this collateral if you cannot repay your payday loan debt. Payday lenders have a reputation for seizing assets if the debts go unpaid; they need to do this because of the high default percentage in their industry. Never risk an asset you could not afford to lose.

#4 Verify Your Protections

Your bank account protects the lender when you take a payday loan without a bank account. It is equally as important to protect yourself. Research and know the payday lending laws in your state. If your state does not permit payday loans without a bank account, never work with a lender offering them under these circumstances. Lenders breaking payday-lending laws in order to extend your loan will likely break the laws in order to collect, and this is not a risk you want to take. Make sure you have a legal contract protecting your rights, and keep copies of this contract with you after accepting the loan.

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