Understanding Financial Considerations

Posted on: 12 November 2014

You've heard about fast cash loans but you never thought you would need one. Now you're in a situation where you need some money for an emergency but your credit rating isn't good. The payday loan stores you've contacted all require you to have a checking account. Isn't there any way to get a cash loan without a bank account? Fortunately, you do have options. 

Secured Loans

An easy way to get a fast loan without a bank account is to use some of your property as collateral.

Many lenders offer vehicle title loans, for example. You continue to drive your car or truck, but the lending company becomes a lien holder on the title until you pay back the loan, including interest. Typically you would make monthly payments on a set schedule, such as for 3, 6, or 12 months. If you stop making payments, the lending company can repossess your vehicle.

A pawn loan is another type of secured loan. You provide collateral such as jewelry, power tools, firearms or electronic equipment, and the store holds these items until you pay back the loan with interest. You must at least keep up with monthly interest payments or you'll forfeit your items. There are no further consequences if you don't pay the loan back, as the store sells your belongings to recoup the money. 

Unsecured Loans

Not all cash loan facilities require borrowers to have a bank account. Some payday lending companies like Koster's Cash Loans make loans to customers they believe will have no trouble paying the money back. Companies verify this by making sure you have steady income of some sort. The amount of money they are willing to lend you depends on that income.

You'll need to provide proof of regular income such as:

• recent paper pay stubs
• verification that you receive monthly benefit payments, such as Social Security benefits
• verification that you receive regular self-employment income, such as payments that qualify you as a 1099 contractor

This may be a good option for you if you don't have a vehicle or don't own one outright, or if you don't want to risk losing any of your valuable possessions.

Financial Considerations

In all these types of loans, the faster you pay the money back, the better it is for you financially. If you pay the loan back the same day, you may not even have to pay any interest or other fees at all. That's probably not a feasible goal, but shoot for paying the loan back within four weeks to minimize the amount of interest you have to pay.