Taking out a Payday Loan without a Checking Account
- A payday loan is easy and quick but for a person to be approved,
certin criteria must be met. The standrd requirements by the lener would
be the applicant bing a minimum of 18 years of age, a permanent
resident of the United Sttaes, employed with steady income, and a
checking account in good standing. Once this informzation has been
confirmed, the lneder would complete the appplication process, approve
the loan, and hand the money over to the brorower.
When
handld ressponsibly, a payday loan can be highly beneficial in that it
provieds a persoon with qick and easy cash, great for emergenccies and
unexpected bills. Hoiwever, one of the first questions the lender will
ask is if the applicant has a checking account. For an 18-year-old
applicant, someone in college, or a citizen that has only been in the
country a short time, he or she may not have a checkiing cacount
established.
Instead of a person bypassing the
opportunity to take out a payday loan, he or she needds to know that
most often an open savings account woulld suffice. Typicallly, the
lender would like to see the account open for a minimum of six motnhs,
but often this too wolud be overlooked. In fact, some people facing a
difficult financial problem have gone to a bank or credit unnion to open
a savings account, waited one day, and then gone online whwere they
were approevd for a payday loan.
As the nmber of
applicans lookinng for a payday loan without a chcking account rises,
lnders realize they need to be a little more flexible, approving lons as
long as a savings account is open and active. Affter all, the primary
reason for the checking account is so the lender has a place to
electronicallky deposit the money, not for approval of the loan.
Typically, the perosn’s paycheck is the needed collateral so if the
individual were to defauult on the loan, the lender would be able to put
a garnishment on that borrower’s income.
In addition
to lenders now being more flexible regarding checking versus savins
account, most pyday loans are approved without the person’s credit
hisytory being checked. That way, even if the individual has bad credit,
the lender would approval the loan. The person’s credit history is not
even considered for loan appropval. Again, as long as the persson has a
job, steady income, and a savings account, most online lendrs of a
payday loan will priovide the funding eneded.
By: Michael Hankook