How to Get a Payday Loan Without Checking Account

payday loan without checking accountOne of the things you’ll run into again and again while applying for payday loans is the need for a checking account. It’s one of the major requirements, and seems like it’s even more important than having a job. After all, even if you have government benefits or are collecting unemployment you can still in many cases get a payday loan if you have a checking account.

So why is a checking account so vitally important to the payday loan process? Well, aside from your recurring source of income, your checking account is the only other thing the payday lenders have to try to get their money back. They don’t mind doing business with a total stranger, as long as they know this person has a job and a checking account.

Having a job tells them there’s a ready source of income, but having a checking account tell them where to find the money. It’s their last line of defense against non-payment. If you don’t pay they will go for the funds. If the funds aren’t there they will just keep waiting, checking to see if your account ever gets to the point where they can cash your check. Eventually they will deposit the check anyway, and it will bounce, causing you more fees and still staying on your record at the payday lender.

The Importance of a Checking Account
So as you can see, having a bank account is very important for the process to even get started. You won’t get very far at any brick-and-mortar establishment because they will want you to write out a check for the amount of the loan plus the fee. If you think you can get around it by going online, you’re wrong because you will be asked to enter your checking account number and routing number, authorizing the lender to debit your account for the amount of the loan plus the fee on your due date.

Is It Possible to Get Payday Loan Without Checking Account?

The short answer is no, not technically. If you manage to find a lender that will give you money without asking for a check or access to your checking account, then you probably aren’t getting a payday loan from a payday lender. There are no legitimate payday loan companies that will give you cash with nothing to hold as collateral, and no other way to collect from you aside from you bringing their cash back.

No Payday Loan Without Checking Account

Instead of trying to think of ways to get a payday loan without a checking account, you should think of how you can get yourself a checking account. This process is much easier, and a checking account comes in handy, not just for getting payday loans, but for living life in general. You’ll spend a lot of time and effort trying to chase down someone that will give you money just because you ask them for it.

Instead, your energy is better spent getting an account, you don’t need anything fancy, even a basic rudimentary account will do. And you don’t have to have your account for a long amount of time, just have them print a statement for you so you can prove that you have an account with something in it.

ChexSystems
The biggest problem most people run into is that they’ve ran into problems with banks in the past and now they’ve made it onto ChexSystems. This makes it much harder to open an account at new banks if you manage to get your account closed. It’s important not to make a villain out of ChexSystems the company, they are just a reporting agency that communicates with all of the banks. It’s the banks themselves that do the reporting, and have created a double jeopardy system.

It really is double jeopardy, because the banks already charged you NSF fees for overdrawing your account. That’s punishment enough. By reporting the slip up to ChexSystems, they are now punishing you twice for the same offense. They are now making your life harder by not allowing you to open up a new account at a new bank with a fresh start. There’s no reason why your relationship with one bank should tarnish your relationship with another bank.

Second Chance Checking
Many banks are now implementing what’s known as second chance checking accounts, which will give you the chance to reestablish yourself as a trustworthy account holder, even if you’ve run into a spot of trouble in the past. Even if you are on ChexSystems you can get a sort of probationary account opened up at the bank, with whatever limits they see fit, so you can prove your newfound ability to manage your money and start building up a new relationship with them.

Credit Unions
Many credit unions out there will accept you, even if you’re on ChexSystems, but even these numbers are dwindling. Many credit unions now also verify with ChexSystems before opening an account. You must be diligent in your efforts to find a credit union that does not check with them first, because having a checking account is rather essential in the payday loan process.

Prepaid Debit Cards
There are many places that offer prepaid debit cards that function much like a checking account, but in many instances these will not be enough to satisfy a payday lender. Even though they come with their own routing number, and you’re able to directly deposit your paycheck into them, and even if the company has sent you checks you can use to draw against the card, you’ll still get turned down as it’s not a traditional checking account.

Our Recommendation

Get yourself a checking account. It may seem like a lost cause if you’re on ChexSystems, but there are still places you can find that will open an account for you. Once you have an account you complete the last step of the puzzle and you’ll no longer have to search for payday loans without checking account again.

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