How to Get a Payday Loan with no Bank Account
Everyone experiences a financial shortfall at some point, whether it’s due to an unexpected expense or an essential appliance breakdown. There are multiple options when it comes to borrowing money to help you get back on your feet, such as credit card loans, payday loans or authorised overdrafts. But what if you need to take out a payday loan with no bank account? To get a loan with no bank account, you may want to look into taking out a doorstep loan. These are small cash allowances that involve a lender visiting your home to process an application and deposit funds upon approval. However, just because it is possible to take out a payday loan without a bank account, it doesn’t make it a good idea.
Can I apply for a payday loan with no bank account?
While it is possible to take out a payday loan with no bank account, doing so can negatively impact your long-term financial health. Most banks and loan companies will require customers to hold a bank account and debit card before approving an application, in order to assess their affordability and provide funds.
Loan companies will use your previous bank statements to corroborate that you have a regular income and to check that wages are regularly deposited into your account.
Reputable lenders will also need to carry out a comprehensive credit check before approval, in order to accurately assess risk as stipulated by the Financial Conduct Authority (FCA). The FCA is the conduct regulator for the financial sector and requires loan providers to assess the competence, capability, integrity and affordability of applicants before approving a loan.
When applying for a payday loan with no bank account, you should be wary of any companies that offer guaranteed approval with no credit checks, as they are likely unregulated and potentially illegal. Possessing a bank account also allows lenders to easily deposit funds in your account, either by direct debit or standing order, and ensures that there’s a record of how many instalments you’ve received. There are a number of other requirements lenders may need before processing an application. Most may stipulate that customers are a UK citizen with a valid contact number, while others may need you to fill out an online form detailing your financial history, provide confirmation of current bankruptcy status (if applicable) and display information on any defaults.
And it’s not just when it comes to lending that it’s beneficial to have a bank account. Having somewhere secure to store money means that you’re better protected against theft and can safely transfer money to others.
Storing money in a bank account also means that you can earn interest and are protected against the declining value of money. If you’re able or willing to open a bank account, you’ll have access to a wider range of lending options. Possessing a bank account also allows lenders to easily deposit funds in your account, either by direct debit or standing order, and ensures that there’s a record of how many instalments you’ve received.
How to get a payday loan with no bank account
As previously mentioned, while it is possible to get a payday loan with no bank account, doing so can be detrimental to your long-term financial health. It involves a local representative visiting your home to consider your application and regularly deliver funds as your main point of contact. As these loans are often taken out by individuals who can’t opt for traditional lending due to their poor credit history or lack of bank account, they often carry high interest rates and sizeable penalty fees for missed payments.
These high interest rates are offered over a short lending period, meaning doorstep loans often end up far more expensive than other forms of credit. Because doorstep loans are a non-traditional form of borrowing that doesn’t require good credit, the sum of money available is often considerably smaller than those that are offered by traditional lenders.
While borrowing from a bank or other well-known financial institution means that there’s less to worry about in terms of reputability, there are unregulated companies that will try to take advantage of customers looking to get funds quickly with no bank account. It’s incredibly important to learn how to distinguish between legitimate and unregulated lenders – otherwise you never really know who you’re dealing with.
Before applying for a payday loan, you should always check that the provider is regulated and authorised by the FCA. The FCA makes payday lending fairer for customers by placing a cap on interest rates and enforcing stronger guidelines on affordability checks. Lending from an unregulated company means that you could end up borrowing more than you can afford to repay, increasing the likelihood of falling into debt.
Before applying for any cash loan online, it’s important to remember that short-term loans are not designed to rectify long-term financial difficulties, as they typically have high interest rates and additional fees for missed repayments. When applying, you should only request to borrow the amount you need to meet an unexpected expense, and only when absolutely necessary.
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