In need of cash but
don't have a checking account? You are not alone. These days, more and more
people are being rejected for a new account - and the rejection is not for the
reasons you might think (see below).
The taking out of
short term loans is on the rise due to many people finding themselves in a cash
pinch. The economy, personal misfortune, or just bad planning are all possible
reasons why you may be running short on cash.
Here are 5 things you
should know if you are interested in short terms loans without a bank account:
1. The vast majority
of short term lenders require that you have a bank account:
Most short-term
lenders require that you have a bank account. There are three main reasons for
this:
a. usually, the lender
will want you to write a post-dated check to them so that you can pay them back
on your next pay day. And, a check requires a bank account!
b. having a checking
account is a symbol your being a responsible person who can pay back the loan
c. possessing a
checking account also allows the bank to establish your identity, which builds
trust
2. Some lenders do not
require an account:
There are some lenders
who do not require that you have an account. However, these lenders will
usually want you to put up some type of collateral in order to potentially
cover any risk that your loan represents. And, that is not always easy to come
up with.
3. Not having a
checking account is frustrating for other reasons, as well:
Lacking access to your
own checking is frustrating for many other reasons, besides not being able to
get qualified for a loan. For example, having an account allows you to have a
safe place to keep your money. It also allows you to write checks and make
debit charges at almost any store, gas station, and service provider anywhere.
Not only that, but
checking accounts also allow you to manage your money through online banking.
And, of course, it gives you access to your money through a network of ATM
machines located anywhere you go.
4. Chex Systems: the
reason you cannot get approved for a checking account:
Applying for a new
checking account is a fairly easy process that can take 15 minutes or less. The
bank will need to establish your identity and get you set up in their system.
But, what if you have applied for one or more checking accounts but been
rejected? This is a humiliating and frustrating experience.
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