Normally, you need to have a checking account when applying for a traditional bank loan. It is very easy to apply for a bank account but there are some people who do not yet have a bank account. It could be because they have to use up all their income to meet the monthly expenses and cannot come up with the minimum deposit to open a bank account. You don’t have to worry about cannot get a loan if you don’t have a bank account. Nowadays, there are a lot of alternative loans that do not require a checking account. Most of these alternative loans that do not require checking accounts are secured loans.
An example is payday loan which does not list checking accounts as a necessary option. If you don’t have a bank account, you can go to the payday loan shop to collect the funds. Some payday loans shops will charge extra fees if you want to collect the funds at their shops instead of having it wired to your bank account. Payday loans is ideal when you don’t have any money on hand to meet the emergency expenses for example home improvement. When you get the payday check next week, you can submit the repayment for the loan.
Car title loan is a type of small secured loan that allows you to borrow against the value of your vehicles such as cars, trucks and motorcycles. With a car title loan, you can borrow up to 25%-50% of the value of your vehicle. You can be eligible for a car title loan if you have a lien free car title. There is a small fee that you have to pay when you apply for a car title loan. The loan term is usually 30 days and failure to pay by the due date will cause your car to be repossessed. They will send people over to your place to evaluate the car before approving the car title loan. The process can take as little as 30 minutes for them to evaluate the car and release the funds to you.
If you search for no checking account loans or similar keywords on the web, you will find that there are a lot of websites that offer loans for people that do not have any checking account. Your income proof is the only thing that they want to see. The monthly salary that you are receiving must be more than the amount that you are borrowing. They will not be performing any background check or look at your credit report to determine whether you are qualified for the loans. Besides, you also have to be a US citizen and be at least 18 years old to qualify for the loan.
Getting a loan is not easy as you have to convince the bank that you are capable of paying off your loan. They will be reviewing your loan applications by taking into account many factors as they want to minimize as much risks as possible before approving your new loan. Some lenders will scrutinize your credit score, job status, assets and overall credit worthiness. Depending on the lender and your risk, there are other variables that are often considered. The following are some areas that installment loans network, a short term loan comparison website indicated most lenders scrutinize when reviewing your loan application.
Length of Time on the Job
Having a stable job is important as it is the proof that you can manage the monthly repayment. Many banks have minimum requirements that you must be employed for the past 6 months. If you frequently change jobs, your application may get rejected because they will see you as a borrower in the high risk category. If you just started on a new job, you might want to wait until 6 months before applying for the loan.
Working with a large company that give you paycheck every month can increase your chances of getting approved for the loan. If you receive cash instead of paycheck for salary, it may be difficult for you to get a loan approval because you cannot come up with any proof to prove you have adequate salary to make repayment every month. Therefore, if you are planning to get a loan, make sure the job you do will pay you the salary in a way that can be recorded for example direct deposit into your bank account or paycheck.
While age itself is not a factor, being able to document your income in many situations will be a variable. Most retired borrowers survive on fixed income but your loan can be rejected if the fixed income is much lower than what you used to earn. Young borrowers in their 20s should have no problem in getting a loan approval if they can prove that they have enough of a monthly to cover for the repayments any of their current debts.
Owning a Home
Taking a loan or mortgage can cause your credit score to drop slightly but this should not be something to worry about. As long as you make the repayment on time, you will be able to build up your credit rating in as little as 6 months. Getting a loan can help you to achieve a good credit score if you are responsible and always pay back on time.
In conclusion, you must have the capability to meet all the requirements prior to applying for a loan. You must remember to always spend time shopping around and compare the interest rates from different creditors before submitting the loan application.