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Guides

9 Loans for People with Bad Credit & No Bank Account

Ashley Dull 11/3/17

Certain facts have the ability to make one feel old simply by being facts. For instance, consider the fact that the popular science fiction movie, Men in Black, was released in the summer of 1997, which makes it a shocking two decades old.

But while it may seem like yesterday, the world is a very different place today than it was when Tommy and Will saved the galaxy for the first time. For instance, we all have touchscreen computers in our pockets, cars are starting to drive themselves, money has been replaced by plastic — and checking accounts now cost a fortune.

Yes, like Pogs, feathered bangs, and paper checks, it often seems that free checking is a thing of the past. Unfortunately, despite the cost, it’s getting harder to avoid the necessity of a bank account in today’s digital world, particularly if you need other financial products.

Installment Loans | Short-Term Loans | Credit Cards

The Majority of Lenders Will Require a Checking Account

Whether we like it or not, between direct deposits and online shopping, the average consumer needs a bank account simply to function in the modern financial world. And while you can obtain prepaid cards and use cash for most purchases, some things in life simply require a checking account — and that includes obtaining a personal loan, regardless of your credit.

In fact, excepting a few questionable payday lenders, the vast majority of lenders will require you to have a valid checking account as a basic application requirement. For one thing, that’s where the lender will most likely deposit your funds if you’re approved. For another, this gives the lender a little more information about your finances, which it will use as part of its credit risk analysis.

The majority of personal loan lenders will have the same basic requirements, including a steady income and valid checking account.

Of course, the cost of maintaining a checking account seems to keep increasing every year, and the only way to avoid the fees is through elaborate systems of automatic transfers and minimum balances. Or is it?

The solution to the high-priced checking account dilemma may actually be to ditch the traditional checking account altogether — and head online. A number of banks are now offering fee-free online-only checking accounts with all the basic features, including direct deposits, bill paying, and debit cards.

What you won’t get is access to brick-and-mortar branches with in-person tellers or dedicated ATMs. This means any check deposits will need to be done remotely. You may also have limits on the number of transactions you can perform per statement cycle.

Personal Installment Loans for Bad Credit

Named for the installment-based repayment structure, personal installment loans are a good way to finance purchases you need to repay over a longer period of time, as they typically extend from three months up to seven years. Installment loans typically have minimum amounts of $1,000, but you can find personal installment loans of up to $35,000, even with poor credit, so long as you meet other requirements.

What you won’t find are installment loans that don’t require at least a basic checking account to qualify, so know that when you apply. When considering taking on an installment loan, be sure to do your homework; shop around a bit for different rates to get an idea of what’s fair for your income and credit score. Online lending networks, such as our top-rated picks below, can be an easy way to receive multiple quotes all at once.

★★★★★
4.9 /5.0 Stars
  • Loans from $1,000 to $10,000
  • All credit types accepted
  • Loan requests can be approved in minutes
  • Get funds directly to your bank account
  • Use the loan for any purpose
  • See official site, terms, and details »
Loan Amount $1,000 to $10,000
Interest Rate 5.99% - 35.99%
Loan Example
Representative example
★★★★★
4.9 /5.0 Stars
  • Loans from $500 to $5,000
  • Helping those with bad credit since 1998
  • Compare offers from multiple lenders
  • Simple form & quick funding
  • Get your money as soon as next day
  • See official site, terms, and details »
Loan Amount $500 to $5,000
Interest Rate 5.99% - 35.99%
Loan Example
Representative example
Our Expert Review 4.9/5.0 (see review)
★★★★★
4.8 /5.0 Stars
  • Loans from $2,000 to $35,000
  • Bad credit is no problem
  • Available in all 50 states
  • Use the loan for any purpose
  • Fastest approval and funding
  • See official site, terms, and details »
Loan Amount $2,000 to $35,000
Interest Rate 5.99% - 35.99%
Loan Example
Representative example
Our Expert Review 4.8/5.0 (see review)

+See More Loans for Bad Credit

While it can be easy to fixate on the size of your monthly payment, it’s important to pay attention to the length of your loan, as well. The longer you take to repay your installment loan, the more it’s going to cost you due to the additional interest payments. The best loan will balance an affordable monthly payment with a cost-effective loan length.

Short-Term Cash Advance Loans for Bad Credit

Often called cash advance loans, short-term personal loans typically have lengths of six months or less. In contrast to installment loans, short-term loans are repaid in a single, lump-sum payment at the end of your loan length that includes both the principal and applicable finance fees.

Where short-term loans are similar to installment loans is in the fact that you’ll have a hard time trying to find a lender willing to skip the checking account requirement. Even if you do find a lender that doesn’t require a bank account, you’ll likely pay higher finance fees or maintenance fees for the privilege. You can use online lending networks, like our expert-rated options below, to find the most affordable lender.

★★★★
4.0 /5.0 Stars
  • Short-term loan of $100 to $1,000
  • Bad credit is no problem
  • Large network of lenders
  • Loan decision as fast as a few minutes; funding as soon as next business day
  • Required: Income of $1000+/month and at least 90 days on job
  • See official site, terms, and details »
Loan Amount $100 to $1,000
Interest Rate 200% - 2,290%
Loan Example
Representative example
Our Expert Review 4.0/5.0 (see review)
★★★★
3.5 /5.0 Stars
  • Short-term loans $300 to $2,500
  • Compare loan offers from multiple lenders
  • Funds wired in as little as 1 day
  • Specializes in bad credit
  • Must have a job and checking account to qualify
  • Not available in: GA, PA, WA, WV
  • See official site, terms, and details »
Loan Amount $300 to $2,500
Interest Rate Varies
Loan Example
Representative example
Our Expert Review 3.5/5.0 (see review)
★★★
3.0 /5.0 Stars
  • Quick approval cash loans of $300 to $2,500
  • Receive cash in as little as 24 hours
  • Options for US, UK and Canadian applicants
  • Bad credit OK
  • Note: "Payday" loans are designed for short-term needs
  • Not available in: GA, PA, WA, WV
  • See official site, terms, and details »
Loan Amount $300 to $2,500
Interest Rate Varies
Loan Example
Representative example
Our Expert Review 3.0/5.0 (see review)

+See More Loans for Bad Credit

Well before you look for a short-term loan lender, it’s vital that you determine if you’ll be capable of repaying the loan when it comes due. Many borrowers take on a short-term loan, then can’t afford the lump sum needed to repay the loan, initiating a cycle of extensions and additional fees that can cause the debt to multiply exponentially. If you think you’ll need more than a few months to repay your loan, consider an installment loan, instead.

Credit Card Loans for Bad Credit

As casually as we use our credit cards, it’s easy to forget one key detail: credit cards are loans. Every time you make a purchase with your credit card, you are, essentially, borrowing money from the issuing bank, with the understanding that you’ll repay that loan. Along those lines, your credit card might be a viable loan replacement, particularly for short-term loans.

What’s more, most credit card issuers won’t require banking information to qualify, so you could potentially obtain a card without checking account. The cards on our list are from issuers who specialize in poor credit applicants and include both unsecured and secured card options.

★★★★★
4.8 /5.0 Stars
  • Checking account required
  • We may approve those currently building their credit history
  • Application response in 30 seconds
  • Know the score! Quarterly FICO score on your monthly billing statement
  • All credit types welcome to apply
  • Your First PREMIER Bank credit card activity is reported to the Consumer Reporting Agencies each month. Making your payment on time and keeping your balances low relative to the credit limit will result in positive marks on your credit report
  • See official site, terms, and details »
Interest Rate See issuer website
Reports Monthly Yes
Application Length 6 minutes
★★★★★
4.8 /5.0 Stars
  • Holiday gifts they'll like, payments you'll love! Use your line of credit to shop over 550,000 items from great brands like Samsung, KitchenAid, and DeWalt
  • Take advantage of low monthly payments if you apply and are accepted for a Fingerhut Credit Account issued by WebBank, who determines eligibility and qualifications for the terms of credit
  • Fast, easy online application process and a quick decision
  • Not an access card
  • See official site, terms, and details »
Interest Rate See issuer website
Reports Monthly Yes
Application Length 5 Minutes
★★★★★
4.6 /5.0 Stars
  • Checking account required
  • Fast and easy application process; response provided in seconds
  • Manageable monthly payments
  • If approved, simply pay a Processing Fee to open your account and access your available credit
  • Reports monthly to all three major credit bureaus
  • See official site, terms, and details »
Interest Rate See terms
Reports Monthly Yes
Application Length 9 Minutes

+See More Credit Cards for Bad Credit

One thing to keep in mind, although you likely won’t need a checking account to apply for a new credit card, you may need a bank account to pay your new card, at least online. Most credit cards are paid via banking transfer from a checking or savings account. Depending on the nature of your card, you may be able to make payments with cash through a branded ATM or bank branch, or through the mail with a money order.

Bad Credit Loans You Can Bank On

Like rose-colored glasses, nostalgia can tint our perception of the past — and the present. Considering the massive changes that have occurred in our world over the last few decades, it’s easy to yearn for simpler times, when phones only made phone calls and banks didn’t charge account fees. At the same time, however, few of us would eagerly part with our fancy, newfangled cellphones for anything — not even free checking.

And much like the cellphone has become a near-necessity in modern society, so, too, has the checking account, regardless of its potential fees. Everything from your paycheck to your loan application will require you to have a viable bank account, so the only real option for most of us is to embrace the change (perhaps by using an online banking app to make your loan payments with your newfangled phone).

About Ashley Dull
Ashley is the Finance Vertical Manager at Digital Brands, Inc., where she oversees content published on BadCredit.org and CardRates.com. Ashley works closely with experts and industry leaders in every sector of finance to develop authoritative guides, news, and advice articles with regards to audience interest. Connect with Ashley on Twitter and LinkedIn.
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