How Do You Get a Payday Loan With No Bank Account?
If you are looking to get a payday loan without a bank account just stop looking. You will not find a company that will give you a payday loan if you do not have a bank account. It goes against the three basic rules of payday loans which are: you must have a bank account, you must be over 18 and you must make at least $1,000 a month.
Why a Bank Account is Essential
Bank accounts, specifically checking accounts, are what make the payday loan industry work. When you get the loan you either get it deposited directly into your checking account or you get a check for the amount of your loan. You will never receive straight cash from anyone because there would be no incentive to pay them back. If you receive a check for your payday loan you will have to issue a postdated check for the amount of the loan plus interest which the payday loan company will cash out when the loan matures. If you did direct deposit, the payday loan company will automatically withdraw the money from your account when the loan matures.
What Would Happen Without a Bank Account
Let us imagine we live in a fictional world where you do not need a bank account to take out a payday loan. The company would have to figure out someway to prove you receive a monthly income so they know you have the means to pay back the loan. They would have to find another way to ensure payback of the loan since there is no account they have access to or check they have to hold as collateral. How would they ensure you paid back the loan? Although a signed contract might be able to work in court, the costs of court would exceed the original amount of money you are trying to get back. What payday loan companies would have to do would be hire people to collect, in unethical ways. The payday loan industry would become loan sharking, with people going around threatening bodily harm if the money was not paid back.
The fact that the payday loan industry relies on bank accounts allow it to be more regulated and not resort to being a petty crime operation. You can't regulate cash when it comes to the payday loan industry, its just not possible. You must have checking accounts in the payday loan industry. It is the only option.