When applying for payday installment loans, one requirement is a checking account. This is important because depositing the loaned money and paying the payment for the loan is usually done through a checking account. Also, payday installment loan lenders often relies on checking accounts in order to extend new loans. The checking account is a way of verifying a borrower’s paycheck, account balance and permanent residence.
This is the reason why getting payday installment loans with no checking account is both challenging and risky. Anyone applying for a payday installment loan with no checking account will find it easy to lie about their pay and leave town without a trace so they do not have to repay their loan. Since most lenders are aware of these risks, it will be unlikely for them to extend the loan without significant cost.
In case a borrower is not be able to provide a checking account when applying for a payday installment loan, lenders usually require:
1. Income Verification
Payday installment loan lenders often verify your income through your checking account. They use your account to determine your average monthly balance and the deposits you make on a monthly or weekly basis. Without the statements, they will need to verify your income through another method. You can bring a paycheck stub to the lender. If you get paid through cash or tips, you can bring a schedule of your tax return to show your annual income as verification. Without an official form of verification, a lender will not give you a loan.
2. Verification of Permanent Address
A checking account is one way for lenders to track a borrower. When no checking account is provided by a borrower, this means that he is essentially living off the grid, making it possible for him to move, travel or otherwise evade attempts to collect. A payday lender needs to know where and how to find you if you fail to repay your payday installment loan. You must verify a permanent address, a workplace or other means of locating you in order to receive your loan.
3. Provide Collateral
Not all payday installment loan lenders require collateral however, if you have no checking account you will need to offer some form of collateral in order to get the cash you need. Nearly any asset can be used as collateral, including jewelry, a car or a stock certificate. Take note you will lose this collateral if you cannot repay your payday installment loan debt. Payday lenders have a reputation og seizing assets if the debts go unpaid. They need to do this because of the high default percentages in the industry. So, never risk an asset because you might lose it.
There may be lenders who will offer payday installment loans with no checking account. However, be cautious about this. Research and know the payday lending laws in your state. If your state does not permit payday installment loans with no checking account, never work with a lender offering them under these circumstances. It is best not to be approved for a loan rather than working with an illegitimate lender that may get you into trouble.