Despite today’s economy bringing us unemployment rates as low as 4%, as much as 39% of the American population don’t have $1,000 sitting in their checking account.
That means that millions of people wouldn’t have any recourse in the event of an emergency.
Traditionally, getting short-term loans online and at local banks has been the solution to which many people have turned to remedy this problem. For people who don’t have checking accounts though, getting a loan of any kind may seem impossible.
Fortunately, when it comes to borrowing money, there are always options.
If you exclusively utilize a prepaid debit card and don’t have a traditional checking account, the loan getting process can be hard but not impossible.
Below, our team breaks down everything you need to know when it comes to getting fast loans without a traditional banking setup.
Why Do Most Loan Providers Require That You Have a Checking Account?
You’ll find that even loan providers that advertise their loans as “simple to get” will ask that you have a checking account.
Why is that?
For starters, having a checking account is a sign of roots. Lenders like to see that borrowers have roots in their community to ensure that they won’t borrow money and disappear.
Also, most reputable places of employment will require that you have some form of a bank account in order for you to receive paychecks. Therefore, having a checking account tells employers that you have a better chance of having some form of stable income.
What Are Your Options If You Exclusively Use Prepaid Debit Cards?
If you don’t have a checking account, many lenders won’t be willing to work with you since your situation doesn’t provide them with any of the assurances we just mentioned.
What are your options to get the money you need?
Find a Cash Lender
Not all lenders work through your checking account to wire money and withdraw what you owe them. Some lenders work 100% in cash.
These lenders are typically payday loan lenders.
You should have no problem finding a payday loan lender that offers fast loans out of a brick-and-mortar-office within driving distance of your home.
Find a Lender Who is Willing to Wire Money to Your Prepaid Account
If you don’t want to do business with cash lenders, there’s a chance that traditional personal loan lenders will be willing to wire to and debit from your prepaid account as opposed to a checking account.
There may be additional fees involved in this process since debiting a prepaid account could cost lenders fees they don’t incur when working with a traditional checking setup.
Get a Checking Account
If you’re drawing blanks when it comes to fast loans lenders who are willing to work with you without a checking account, it may be best to just get a checking account.
Getting a checking account is a simple process that can be done free of charge both online or, better yet, at your local credit union.
Tips for Finding Qualified Lenders to Work With
While regulations imposed by state and federal authorities have made borrowing money a lot safer for consumers, there’s still a lot to watch out for when seeking fast loans.
There are organizations that charge predatory rates. Places that charge hidden fees. There are even crooks that will work to steal your money as soon as they gain access to your accounts.
All of these risks go up significantly if you’re needing to scrape the bottom of the barrel to find a lender that’s willing to work with your unique situation.
To avoid falling into a lending trap that could cause you deep financial hardship, do the following when looking for a fast loans lender.
Research Lenders Prior to Making Deals With Them
A simple Google search of “fast loans no checking account” will turn up hundreds of offers from lenders that are offering too good to be true deals.
Many of these lenders are predatory.
To make sure you’re doing business with a reputable company, look for reviews and testimonials from the lender’s previous customers online. If you’re seeing a trend of poor reviews, take your business elsewhere.
Only Borrow From Certified Lenders
To do business in certain states, lenders may need to be certified. Understand what your state’s certification requirements are for lenders and ensure that your lender has satisfied those requirements prior to borrowing from them.
A lender that’s playing fast and loose with certifications will likely cut corners in other places as well.
Be Diligent When Assessing Conditions
We understand that the leverage you have over lenders is minimal given the fact that you need cash now and that you don’t have a checking account. We can’t stress enough though that you should still do your diligence in understanding the terms and conditions surrounding your loan product.
As we’ve alluded to already, some loan providers will bury you in outlandish interest rates and fees that could have you paying down your debt forever.
Always compare multiple lenders to find the one that’s offering the best deals. If there are aspects of their agreement that you don’t understand, read more about this subject or work with a community debt counselor to help you make sense of things.
At the end of the day, the more you know when taking out fast loans, the better off you’ll be.
Wrapping Up How to Get Fast Loans With a Prepaid Debit Card
Given the common base requirement of having a checking account to qualify for loans, those that use prepaid cards exclusively may feel like they have no options for fast loans.
Per our advice above, there are options prepaid card users can exercise to get the money they need.
Just be sure to do your diligence when working with lenders to ensure you know what you’re getting into.
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