If you lack a checking account, you’re certainly not alone. Many Americans don’t have checking accounts for a variety of reasons that might include not fully understanding their banking options or simply not having the time to open an account. However, when seeking to borrow money from a financial institution, having a checking account is often a requirement for application and approval.

Each lender has their own reasons for why they require loan applicants to have a checking account. Some lenders may require a checking account because they may see that having a banking account is an indication that an applicant is more likely to have discretionary income and less likely to be surviving from paycheck to paycheck, and generally in better control of their personal finances.

While consumers who do not have checking accounts may have limited options when looking for a short-term loan, there are lenders and products available to them.

Quick Cash Loan Options

  1. Payday Loans

    Even though payday loans have traditionally required a checking account, there are lenders that require only a savings account or proof of income.

  2. Secured Loan

    For secured loans, borrowers put up a piece of collateral and obtain a loan against its value. A common type of secured loan is a title loan, in which the borrower will provide the lender with their vehicle title and use the value of the car as collateral. Borrowers get their car title back when they repay their loan. If the borrower defaults on that loan, the lender can repossess and sell the car, using the funds to settle the outstanding debt.

  3. Pawn Shop Loans

    Borrowers can also take an item to a pawn shop and receive a loan against its value. With this type of loan, the pawn shop simply keeps the item if the borrower defaults on their loan, and the item may be resold.

It’s important to remember that short-term loans should only be used as a last resort for unexpected financial hardships, for example after savings have been exhausted or if borrowing funds from family or friends is not an option. If the need to take out a short-term loan is present, it is important to make sure that loan payments can be made on time to avoid late fees, additional interest, and the risk of entering a cycle of debt.

While lending options exist for consumers without one, there are a number of benefits to opening a checking account. Most banks do not charge their customers fees for cashing checks or processing cashier’s checks or money orders. And while some banks may charge a monthly fee, these may be waived if a certain minimum balance is maintained, or if a minimum amount is direct-deposited into the checking account each month. Banking customers may also utilize additional methods of payment such as debit cards, personal checks, and online payments, offering them more flexibility in how they pay their expenses. These benefits, along with access to more lending options, may be worth some consideration for cash-only consumers.

The content on this site is for informational purposes only and is not professional financial advice. Blue Trust Loans does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.

Hummingbird Funds, LLC is a sovereign enterprise, an economic development arm and instrumentality of, and wholly-owned and controlled by, the Lac Courte Oreilles Band of Lake Superior Chippewa Indians (the “Tribe”), a federally-recognized sovereign American Indian Tribe. This means that the Hummingbird Funds’ installment loan products are provided by a sovereign government and the proceeds of our business fund governmental services for Tribe citizens. This also means that Hummingbird Funds is not subject to suit or service of process. Rather, Hummingbird Funds is regulated by the Tribe. If you do business with Hummingbird Funds, your potential forums for dispute resolution will be limited to those available under Tribal law and your loan agreement. As more specifically set forth in Hummingbird Funds’ contracts, these forums include informal, but affordable and efficient Tribal dispute resolution, or individual arbitration before a neutral arbitrator. Otherwise, Hummingbird Funds is not subject to suit or service of process. Neither Hummingbird Funds nor the Tribe has waived its sovereign immunity in connection with any claims relative to use of this mobile site. If you are not comfortable doing business with a sovereign instrumentality that cannot be sued in court, you should discontinue use of this website.