Sometimes, we can find ourselves falling into some very tough times financially, and sometimes we may need to ask for a little bit of help from external sources to help us to escape such situations.
One of the most popular avenues for financial aid is a loan.
We may need to depend on loans for countless different reasons across our life, and as such there are countless different types of loans, each designed to help people in specific circumstances.
We’re willing to bet that you are here right now because you are in specific circumstances of your own, and you want to find out if it is possible to earn yourself a small loan even without a bank account.
Is it actually possible to get a small loan without a bank account? If so, how do you actually do it?
Join us below right now to get answers to these questions and even more! Some of the answers might just surprise you!
Can You Get A Small Loan Without A Bank Account?
It is actually possible to get a loan without access to a bank account, but it is often not advised, as it adds a layer of difficulty to the loan application process for both the lender and the client borrowing the money.
Loans that can work without bank accounts are referred to as ‘Doorstep Loans’, and these operate by providing you with a small amount of money, most often in cash form that must eventually be paid back.
The only problem is, doorstep loans have become notorious as they are rather difficult to pay back. This is due to the fact that you have no bank account, which makes you of higher risk to the lender.
If you do not pay back your loan, with the requisite interest, it is more difficult for them to pursue reparations, as you do not have a bank account.
The expense of such a loan is reflective of the potential risk to the lender when it comes to these types of loans.
How Do You Get A Small Loan Without A Bank Account?
Generally, the first thing you must do in order to get a small loan without a bank account, you must make a point of checking to find lenders that can offer such loans.
Most lenders, in general, will not offer the opportunity to get small loans without a bank account, so you will have to dedicate some time to find lenders that will.
You should also make sure to strongly consider whether a doorstep loan is right for you.
As we mentioned earlier, doorstep loans are incredibly expensive, meaning that once you have one, you must pay a high rate of interest due to the risk associated with such a loan.
Make sure that, once you have received the loan, you have enough money to fall back on to help pay your way out of the debt.
Also, make sure that the money you are borrowing will be used correctly so that none of it goes to waste.
Once you have found an appropriate lender, you will then want to make sure that they are legitimate and trustworthy.
This can easily be done by checking to see that the lender is officially recognized by the FCA.
The FCA is responsible for ensuring that all businesses operating in the world of finance are doing so under strict regulations. In order for any lending business to operate, it must be registered with the FCA.
If you find a business that is not, then do not enter into a contract with them!
You should also check the legitimacy of the business in other ways, by seeing how contactable they are.
If the business makes it difficult to get into direct contact with them, such as by withholding phone numbers or even their business address, then do not deal with them, because it is more likely that they are trying to scam you.
You might also want to see if there are any public reviews about the business you are dealing with. If there are a high number of reviews, and most are positive, then you may be in very good hands.
If the majority are negative, or there are a very small number of reviews in general, then it is best to steer clear.
When applying for a loan without a bank account, you will also want to provide the lender with all of the necessary documents that they request, so that they can verify your application. What documents a lender requires will depend on the lender you have chosen.
How Do You Pay Back A Doorstep Loan?
Generally, doorstep loans are paid back by the client in instalments. The repayments are collected personally by the lenders, hence why they are known as ‘Doorstep’ loans.
The loan repayments are most commonly done using cash.
Why Do Lenders Prefer You To Have A Bank Account?
Generally speaking, it is much more beneficial, in the eyes of a money lender, if you have a bank account.
The reason for this is that it allows the lender to get a direct insight into your finances, and your spending habits.
Sharing your bank account with a lender will allow them to see how you manage your finances, which helps them to assess if you would be too risky to lend money to.
As well as this, a bank account is the best go-between between a lender and an individual borrowing money.
The bank account can be used to directly deposit the money that is being loaned and can also be used to set up a direct debit in order for the lender to collect repayments on a regular schedule.
These are just a few of the myriad examples of why money lenders prefer customers with bank accounts, but many lenders are also understanding of the fact that many people do not have bank accounts, which can be due to many other reasons.
Though it is generally preferred by most lenders that you apply for a loan with a bank account, it is possible to apply for a small loan without a bank account, and we hope that this guide has helped to show you how you can do it safely yourself.
Such loans are not preferred by lenders, thanks to the high risk associated with them, but they are still officially available and offered by many lenders across the world.
Frequently Asked Questions
What Is The Easiest Loan To Get Approved For?
Arguably the easiest loan to be approved for is a payday loan, which allows you to access the money that you would receive on payday at an earlier date.
How Can I Get An Instant Loan In 5 Minutes?
It would be difficult to get a loan from an official lender in as few as five minutes, but if you needed money that quickly, you could borrow it from friends and family.
Do Cashapp Let You Borrow Money?
Yes. Through the CashApp app, users can directly apply for small short-term loans that need to be repaid alongside an additional 5% flat fee.