NEW YORK, NY / ACCESSWIRE / August 27, 2024 / As commonplace as it may seem to have a bank account, not all Americans do. According to a 2021 survey by the Federal Deposit Insurance Corporation (FDIC), about 4.5 percent (5.9 million households) of Americans don't have a bank account for one reason or another.

Due to this, it may be challenging for these individuals to get emergency loans when they're in financial distress. However, though options may be limited, there are a few ways they can still get funding, even without a bank account.

Loan Options That Don't Need a Bank Account

Here are a few places to get a loan without a bank.

1. Payday Loans

A payday loan is a short-term loan (typically two weeks) where the lender will essentially provide an advance on an upcoming source of income, such as a paycheck from an employer, pension, or Social Security. Payday loans may provide immediate cash payments but typically charge an interest fee based on the amount owed, which can range from $10-$30 for every $100 borrowed.

2. Car Title Loans

A car title loan is a secured loan where the borrower gives their vehicle title to the lender as collateral - something of value that the lender could seize if the loan is not repaid. The borrower may typically have approximately 15 to 30 days to repay the loan, or the lender can legally take their vehicle and sell it to recoup the funds.

These types of loans may offer quick cash payments. However, the APRs on these loans may be substantially higher than a personal loan or credit card, and some lenders may also charge additional origination, processing, and document fees as well. Plus, keep in mind, car title loans aren't available in all states and you may need to own the vehicle outright.

3. Pawn Shop

Pawn shops are well-known places where people may use personal items as collateral to get on-the-spot cash loans. However, these loans are risky because if they're not paid back in time, the borrower may lose their property. The loan amount is also often a small fraction of the value of the collateral.

4. Friends and Family

As a last option, individuals can ask their friends and family for assistance during true financial emergencies. However, every effort must be made to pay them back promptly. Otherwise, it could cause significant damage to the personal relationship.

How to Get Better Loan Options

Getting approved for a reasonable personal loan without a bank account could be challenging. OneMain Financial offers flexible terms and may deliver funding in as little as one hour after closing on an approved loan. To qualify for one-hour funding, OneMain requires the borrower to have a bank-issued debit card.

For individuals with an unfavorable banking history, many financial institutions provide a "second-chance bank account" to give them access to banking services. Though these second-chance accounts may be more limited and have higher fees than what a traditional bank account may offer, opening this kind of account could lead to better loan options.

The Bottom Line

Though it's possible for someone to get a short-term loan without a bank account, they may be limited to options like expensive payday loans and car title loans. Those in this situation may want to apply for a second-chance bank account so they can possibly have access to more options to meet their financial needs.

Sponsored Content

About OneMain Financial

View Website

OneMain Financial is the leader in offering nonprime customers responsible access to credit and is dedicated to improving the financial well-being of hardworking Americans.

CONTACT:

Sonakshi Murze
Manager
sonakshi.murze@iquanti.com

SOURCE: OneMain Financial