Not too long ago when payday loans just started they were considered too high-risk. Those who opened up shop imposed stringent requirements, one of which was an active checking account. But are there no checking account payday loans out there?
Today, with payday loans business getting more competitive, rules are getting more relaxed. Even some of the ridiculous finance fees and charges are slowly disappearing.
And though interest rates are still high, they have continued to slowly but surely come down. Yes, there is lots of room for improvement, but even a little improvement is better than none.
Since with payday loans there are no credit checks or collateral is requirement, lenders required that you have an active checking account preferably with wages directly deposited by your employer. Those without direct deposit could still get a loan but the amounts were lower or interest rates higher.
Requiring a checking account was in order to facilitate easy direct withdrawal of the owed funds from your checking account if you defaulted on the loan.
The presumption was that you could not simply close an account for which you had history and open a new one elsewhere. If you had direct deposit arrangement with your employer this would be tricky to do on short notice.
Also, if you just withdrew all cash your cash so the lender would not be able to debit payment you would still run overdraft fees and penalties. It was therefore assumed that you would not be inclined to do this.
While most companies today still insist on the applicant having a checking account, there a few that offer no checking account payday loans. But most will not post this on their website or store. Even some companies that have this requirement will often relent if you explain your situation.
The most minimum requirement is a savings account. If the savings account shows activity and has some history, chances are you will find a payday loan lender who will work with you.
Now, you should know that there are certain additional prerequisites for getting a no checking account payday loan. Though these differ by company, the apparent universal ones are that you must be at least 18 years old, a citizen or resident of the respective country, and have regular income such as a job or pension.
Income and employment history requirements vary by lender. The mean income requirement appears to be around $1000 per month give or take a couple of hundred. Some companies will require one month at your present job, others longer.
The best way of finding a company that will offer you a no checking account payday loan is to do some research online. Some indirect lenders are likely to find a payday advance lender to suit your situation as they often work with several competing companies. Just make sure the company is reputable.
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