Loans with Savings Account

Every person faces difficulties when he urgently needs money. However, the problem for most borrowers is that they do not have a bank account and feel that they are not eligible to get financing. Is there a solution and is it possible to get a loan without a bank account? The answer is yes. If you have a savings account, you can apply for a payday loan, be approved, and receive the funding you need.

Each of us needs funding from time to time to cover our needs and wants. Fortunately, lending is now much easier than it used to be. Many lenders offer short-term loans in the form of a payday loan to help you deal with your financial needs. Previously, in order to obtain a short-term loan, the borrower had to provide a checking account, but now it will be easier for you to get access to the money you need. This way, you can even take out a loan with just a savings account.

What are Payday Loans with a Savings Account Only?

Many people who do not have a credit card or emergency fund often think they will not be able to get a loan, but this is a false statement because even this type of borrower is eligible for a loan. What's more, even if you have bad credit and have previously faced bank or credit union rejections, you can still get a loan with a savings account.

So, some payday loan companies agree to work even with borrowers who only have a savings account and a bad credit history. Thus, if the borrower applies for this type of financing, the lender allows him to pay from that account. Loan repayment terms vary, however, as a rule, you must pay the debt on the day of your next paycheck. Some lenders have a loan repayment period of about 2-3 weeks.

It is also worth paying attention to the fact that many companies and lenders provide online lending services, which is not only fast and convenient but also as simple as possible. All you have to do is:

  1. Visit the lender's website and fill out a simple online form. There, you will be required to provide personal information such as name, residential address, and proof of income. Also, lenders may ask for your bank account information, photo ID, contact details such as phone and email, payslips, and more.
  2. If you are applying for a cash advance loan, then the loan amount will be transferred to you through a deposit.
  3. Thus, if you submit your application and it is approved, the lender will transfer the money to your bank account if you have one. But if you don’t have a bank account the direct deposit will be transferred to your savings account, so that you can use the money for your needs.
  4. So, when you need to repay a loan, you can transfer funds from your savings account instead of having it withdrawn from your checking account. Thus, as you understand, it is enough to have a savings account not only in order to receive money, but also to return it.

Why do borrowers choose payday loans with a savings account?

  • Of course, many people are far from always able to deal with emergencies on their own, find the money for an urgent purchase, or pay for medical treatment. Thus, money is urgently needed, especially if loved ones cannot provide you with the required amount. So, when looking for options that can help them meet urgent needs, most people choose short-term loans.
  • Typically, most people need just a small amount to cope with urgent expenses, such as paying bills or buying food. Thus, a short-term loan is often sufficient to cover these needs. Unfortunately, even people with a good income may sometimes need help, as they may find themselves in different life situations. Thus, a payday loan is often the best way to get quick financing in order to deal with your difficulties and get back to your normal life.
  • Most people are looking for an alternative source of finance when they cannot get a traditional loan from a bank or credit union. Since funding is still needed, people are looking for payday companies or lenders who are willing to lend them money even if they have a bad credit history.
  • Another reason why people look for other lenders is that people may not have a bank account (which is why they cannot get a bank loan). As you know, if a bank loan is approved, then the money is transferred directly to your bank account, which is a problem for those people who do not have one. Thus, clients come to credit companies in order to obtain a loan if they have a savings account only.

Thus, by contacting a lender, you can qualify for a payday loan. As you know, a payday loan is a short-term type of loan that the borrower can use to solve his emergency problems. However, it is worth remembering that such a loan must be paid on the day of your next paycheck. Typically, in order to obtain a loan, lenders assess your credit rating, payment history, and income. However, it is worth knowing that even people with bad credit history can get a loan if they have a good salary and can make timely payments.

What are the advantages of payday loans with a savings account?

Of course, before applying for a particular loan, you should pay attention to its benefits in order to make sure that they meet your needs and desires. So, by examining the main advantages of a payday loan, you can understand whether you should apply or should better look for something else.

  • Even if you do not have a checking account, this is not a problem. Payday lenders work with different clients. Thus, even if at the moment you do not have a checking account, you can still apply and be approved for a loan.
  • A bad credit rating is also not a problem if you need money and are considering a payday loan as a financing option. Often, banks and credit unions refuse a borrower to obtain a loan if he has a bad credit history, however, turning to another company or lender, you will be pleasantly surprised, as payday lenders are guided by the needs of clients. They understand that situations are different and you may have financial difficulties. Of course, in order to be approved, you must have income as proof that you can repay the loan. This way, even if you have bad credit, you can still get a payday loan.
  • A simple application process will also be one of the benefits. If you urgently need money, then you will spend only a few minutes filling out a simple online form. Fortunately, many lenders require a minimum set of paperwork in order to approve your application. This way, you can get money quickly and solve your financial difficulties.
  • Online application is perhaps one of the main advantages of a payday loan. While before it was necessary to go to the lender's store, wait a few hours, waste time, and so on, now you can fill out an application online at any time convenient for you! Just think about how much time you can save. Thus, it is necessary to keep up with the times and use online applications. However, if you wish to apply in person, you also have the option to do so, but remember that this is a longer process.

What are the disadvantages of payday loans with a savings account?

Of course, it would be a lie to say that a payday loan has advantages and no disadvantages. Of course, it is important to pay attention to the cons in order to make sure whether this loan offer is right for you or you should look for something else.

So, as you know, bank accounts are required because they show the lender your ability to repay the loan without delay. Of course, without a bank account, the lender cannot make an automatic withdrawal when the time comes to pay off the loan. Thus, some creditors may find it difficult to agree to such terms.

However, if you have a savings account, your chances of finding a lender who is willing to work with you will already be higher than if you did not have this account. Of course, it would be preferable to provide the lender with a checking account, however, a savings account is also an option to apply. This way, you can also be approved and get paid to deal with your financial difficulties.

Payday Loans with savings account direct lender

Many borrowers choose to work with direct lenders instead of going to companies or intermediaries. Check out the best direct lenders offering Payday Loans online and near you to borrowers with a savings account as well as those owning a bank account:

However, you need to know some information about what you have to provide and how easy it is to get a loan when working with a direct lender. By reviewing the main points, you can increase the chance of your application being approved for direct lender payday loans with a savings account.

  • Of course, lenders are most concerned about making sure you pay off your loan on time. Since you do not provide a bank account, they will not be able to automatically withdraw the required amount on the day the debt is due. Thus, you need to prove that you are a reliable borrower who will be able to pay the loan on time. So, when filling out a loan application, it is better to show all the sources of income that you have, so that the lender will carefully review your annual income. By showing all sources of income, your chances of getting a loan will increase.
  • It is also very important to study the application process and the lender's requirements before submitting it. Make sure you can provide all requested documents such as proof of income, proof of residency, government issued photo ID and so on. The lender will also ask for your contact details such as phone and email. Often, loans are only issued to US citizens or legal residents. So, before applying, make sure that you meet all the criteria and can provide the necessary documents.

Important! If you are self-employed, you still have the right to apply and receive a loan. However, you will also need to provide proof of income. The same goes for freelancers, without confirmation you cannot get a loan. Typically, PayPal receipts, housing receipts or utility bills will be sufficient to show that you have a monthly income. This way, you will be able to show that you have a salary and you will be able to pay off the loan debt.

  • Pay attention to the means of communication. When lenders are working with a borrower providing only a savings account, they want to have multiple options for communicating with you. Thus, you will need to provide your contact phone number, email address, residential address, and so on. Thus, lenders get an additional guarantee that they can contact you and get money when the time comes to pay off the debt. Thus, the more communication you provide, the better your chances of getting a loan.

Also, some lenders may ask you to provide contact information for your employer and sometimes even your family, so that it is easier for them to find you. Sometimes it can be stressful, but if you want to get money, you have to go through this procedure.