Do you need cash but do not have a checking account? You’re not alone. Nowadays, more and more people are rejected by a new account, and the rejection is not due to the reasons why they might think. The elimination of short-term loans is increasing because many people are in cash trouble. The economy, personal misfortune or simply poor planning is all the possible reasons why you are running short of cash. Here are 5 things you should consider if you are interested in short-term loans without a bank account:
1. The Vast Majority of Short-Term Lenders Need That You Have a Bank Account
Most short-term loan lenders need that you have a bank account. There are 3 key reasons for this:
- In general, the lender will need you to write a check with a later date so you can pay them on your next payday and a check requires a bank account.
- Having a checking account is a symbol that you are a responsible person who can repay the loan.
- Owning a checking account allows the bank to establish its identity as well, which generates confidence.
2. Some Lenders Do Not Need an Account
There are several lenders that do not need you to have an account. But these short-term loans lenders will normally want you to present some type of collateral to potentially cover any risk that your loan represents and that is not easy always to achieve.
3. Not Having a Checking Account Is Frustrating for Other Reasons, Too
Lack of access to your own account is frustrating for many other reasons, in addition to not being able to qualify for a loan. For instance, having an account allows you to have a secure place to keep your money. Also, it allows you to write checks and debit charges at almost any store, gas station and service provider anywhere. Not only that, but current accounts also allow you to manage your fund through online banking. Of course, it provides you access to your money through a network of ATMs located anywhere you go. Click here.
4. Chex Systems: The Reason Why You Can’t Get Approval for a Checking Account
Applying for a new checking account is a very simple process that can take fifteen minutes or less. The bank must establish their identity and configure it in their system. However, what happens if you have requested one or more checking accounts but have been rejected? This is an embarrassing and frustrating experience.
The reason why 99% of people are rejected by a new checking account, to the surprise of a lot of people, has nothing to do with your credit score. Fairly, it is because their name has been reported to a database called Chex Systems. Now, around 80-90% of banks refer to Chex Systems when they think new account applications.
5. Second Chance Checking Accounts Allow You to Avoid the Hassle of Chex Systems
When your name has been reported to Chex Systems, there is no way to eliminate it immediately. But there is a positive side to this cloud: there are a handful of banks that do not refer to Chex Systems when they consider a new application. These banks are called “second chance” banks, for good reason: they provide you a second chance when others do not.
If you are searching for short-term loans with no checking account, it is best to first request a second chance checking account. The approval process can take only one minute, and you can discover any number of lenders willing to extend a new loan. For more information visit: https://www.loanpig.co.uk/short-term-loan-direct-lender/