Personal Loans Without a Bank Account

Where can you get a personal loan without a bank account?

Well, it’s possible to get a personal loan without a bank account, but they are usually small, expensive, short term, and can require collateral. Having said that, you have a few options. 

Pawnshops can lend money to people who don’t have bank accounts. If you own your car and there is no money owing on it or very little, you can look into getting a title loan. You can take a cash advance off your credit card if you have one, or you could consider asking family or friends for a loan.

Pawnshops

A pawn shop will take an item of value that you have and can lend you an amount based on the item’s value. The amount they use is often 20%-60% of the amount of the item. So, if you have a piece of jewelry or a power tool value at $500, you could potentially borrow between $100-$300. Pawnshops will give people personal loans without a bank account because they hold the item as collateral. If you don’t pay them back, they’ll sell your collateral to get their money back.

To qualify for a loan at a pawn shop, you need:

• An item to use as collateral
• Some identification-the requirements can vary between shops
• You need to agree to the terms and conditions of the pawn loan

The amount you can borrow will vary from shop to shop. Some have low lending limits, while others, such as Cashcanada.ca, can lend up to $10,000. Pawnshops have high rates (from 10%-200% or more) and short repayment terms of usually 30 days to a few months.

Title loans

A title loan is a loan on a vehicle you own. It can be a car, truck, motorcycle, RV, or other vehicles the lender considers acceptable. If you owe money on the vehicle, some title lenders might still give you a loan on it. The vehicle’s value must be more than the amount you owe plus the title loan to qualify. Some title loan lenders will approve a personal loan without a bank account because they hold the vehicle as collateral. If you don’t make your payments, the lender can repossess your vehicle and sell it to get their money back. 

You will need to provide the title lender with:

• Your driver’s license
• Proof of ownership
• Proof of insurance
• Documents showing the vehicle is paid for or the amount you owe
• An inspection and/or appraisal of the vehicle

Depending on the vehicle’s value and how much you owe on it, you can potentially borrow several thousand dollars. In some instances, you can spread the payments over a few years. However, title loans often have a high-interest rate-sometimes as high as 60%- as well as additional fees such as a registration fee, discharge fee, administration fee, and others. If you get this type of loan, carefully read all the paperwork they give you because the documents will disclose all charges.

Pros and cons of pawnshop and title loans

Family or friends

If you have family or a friend willing to lend you money, you can repay them in cash, so you don’t need a bank account. However, loans from family or friends can lead to relationship problems, so it’s best to approach this situation cautiously.

Borrowing without a bank account

Pawnshop loans, title loans, credit card cash advances, and loans from friends or family are the easiest way to borrow without a bank account. If these options are not the best for you, think about opening a bank account instead of getting a personal loan without a bank account. The identification you need for pawn loans, title loans, and to be approved for a credit card is similar to what you need to open a bank account. If you don’t live near a bank, you can open one online. Having a bank account will give you more options to borrow money.