Do I Need a Bank Account To Get a Payday Loan?

Author · Modified on 14 September, 2022

No, you do not always need a bank account to get a payday loan, although it will be much easier to get a loan if you do have a bank account.

For your typical payday loans, the majority of lenders will require their borrowers to have a bank account and will likely deny anyone who does not have one.

However, there are certain types of loans that don’t require you to have a bank account – these are known as ‘doorstep loans’. Additionally, in some rare cases, lenders may have more lenient eligibility requirements and may not require you to have a bank account, but generally speaking, bank accounts are a basic requirement for payday lenders.


A doorstep loan is a type of short-term loan which allow you to borrow a small amount of money, quickly.


Can I Get a Payday Loan Without a Bank Account?


The majority of lenders require you to have an active bank account, and this is for good reason.

When you apply for a loan, lenders will want to make sure that you have a regular income so that you can afford to repay your loan when it is due.

Having a bank account also makes repayments easier, as bank accounts can allow their customers to set up direct debits or standing orders, using a process known as ACH Authorization. This helps to guarantee the lender that they will receive the repayments on certain dates.


Other Eligibility Requirements


In order to qualify for a loan with Dime Alley, you must meet the eligibility requirements, which are simply;

  • Be a US citizen;
  • Over 18 years of age;
  • Have a live checking (bank) account to receive funds;
  • A steady income of at least $800 per month.


What is a Doorstep Loan?


Doorstep loans, or emergency home credit loans, are a type of short-term loan which allow you to borrow a small amount of money, quickly.

As mentioned above, doorstop loans are usually for smaller amounts than payday or installment loans, and are unsecured, meaning the borrower won’t need to put up collateral, i.e. their car, home or other physical asset.

Doorstep loans usually attract those with a poor credit history and are without a bank account, and the default rate on such loans is one of the highest of any type of short-term, personal loan.

They were originally named doorstep loans as they involved the lender physically coming to your home to lend/receive the loan, but as the industry has developed, doorstep loans are often available online.


How Can I Get a Doorstep Loan?


Firstly, you will need to contact a doorstep loan company, or lender, and then fill out their application form with personal information and financial history. If the company would like to pursue, they will contact you to arrange a meeting and discuss the terms of a potential loan.

Once the terms have been agreed by both parties, they will lend you the amount in physical cash, as opposed to transferring the funds into a bank account like in other types of online loans. The lender will then visit you weekly to collect the weekly owed repayments and will continue to do so until it has been completely cleared.

These home collections can be rather intimidating and aggressive. They are regulated by the FCA but it is important to note that many doorstep loan companies operate without official authorisation.

So yes, it is possible to get a loan without a bank account – but it is certainly not advisable.


Are There Any Alternatives to Payday Loans Without a Bank Account?


There are a number of alternatives that you could use in instances where you need funds quickly, which include;

  • Borrowing money from friends or family;
  • Taking on extra shifts at work or working overtime;
  • Making cuts to other costs such as subscriptions services and contacting your creditors.

The final alternative is suitable for when you need cash to pay off a bill or payment that you cannot afford. For instance, if you are unable to cover the funds to pay your tax bill, the HMRC will set up a suitable payment plan for you. The same typically applies for banks and utility bill companies too.

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