Best Loans for People with Bad Credit & No Bank Account

Personal Loans

Best Second-Chance Auto Loans

In addition to personal loans, it may also be possible to attain second-chance financing for a car. In many ways, lenders may be more willing to offer such financing. Thus far, we have mostly talked about unsecured loans, which can be difficult for a lender to recoup in the event you stop making monthly payments.

An auto loan, on the other hand, is a secured loan. To be precise, the car itself secures the loan. That means that if you become delinquent on your payments, the lender can opt to repossess the vehicle. While one would hope such a thing never happens, it does make lenders more willing to lend to those with bad credit. Having this option means the lender will be more able to recoup their funds in such a situation.

From your perspective, not only will that make approval easier, but it may lower your interest rate as well. Interest rates are entirely based on perceived risk, and the possibility of repossession makes that risk lower.

A Second Chance at Financing Is Possible

If you have ever found yourself in a financial pickle after taking on financing, you might think no lender would ever consider you again. Fortunately, that isn’t always the case. There are lenders out there that understand that things happen. Sometimes things don’t go according to plan, but that doesn’t mean you shouldn’t be given another chance.

Of course, if you are looking for a second-chance loan, your interest rate will probably be a bit high. You also may not be approved for a very large loan. But you can flip the script by making your payments on-time and in full.

You Deserve a Second Chance (at Financing)

Although some of us may like to think we can never make mistakes, the reality is that they do happen sometimes. Sometimes those lives can affect our relationships, our mental health, and yes – our finances.

The good news is that even if you find your finances are suffering as a result of some missteps, chances are that all hope is not lost. There are many lenders out there willing to finance personal loans and auto loans, as a second chance.

Because, as they say, we all deserve a second chance.

CashUSA

LetMeBank’s rating
Apply Now

Features & Benefits

  • Flexible borrower requirements
  • Loan request can be approved within minutes
  • Money deposited as early as 1 business day
  • All credit types accepted

CashUSA connects borrowers with lenders. Each application is sent to the lender most likely to lend to the borrower. Because it works with a variety of credit profiles, it is not only a poor credit loan broker.

Interest rates vary depending on the lender, so make sure you read through the terms for each emergency loan before you choose. Applying online only takes a few minutes, and funds are often available the next day.

BadCreditLoans.com

LetMeBank’s rating
Apply Now
  • Loan Amount
    $500 – $10,000
  • Loan Term
    3 – 60 months
  • APR
    5.99% – 35.99%

Features & Benefits

  • No cost to check loan approval
  • High approval rate despite credit history
  • Funds available as soon as next business day
  • Assisting people with bad credit since 1998

Bad Credit Loans is an online lender marketplace that allows you to connect with multiple lenders by filling out a single application. The service is 100% free.

Once you’re approved, your lender will provide you with the APR, loan fees, and other terms. Read through the terms, compare all the offers you’ve received, and only accept the loan you’re most comfortable with. You are not obligated to accept the personal loan from any lenders that you are matched with.

NetCredit

LetMeBank’s rating
Apply Now
  • Loan Amount
    $1,000 to $10,000
  • Loan Term
    Varies
  • APR
    Varies

Features & Benefits

  • Poor credit or little credit history is OK
  • Excellent customer reviews
  • No prepayment penalties
  • Only available in 37 states

NetCredit is a direct lender that might be able to fund your needs quickly. Plus, if you change your mind about the loan, you will be able to return it within one business day.

If your needs can be covered with a loan of $10,000 or less, then you should consider working with NetCredit. They also offer lines of credit to customers in some states.

When searching for long term loans, look at both the monthly payment and the total cost of the loan. A long repayment period can keep your payments more manageable each month, but could also end up costing you more in the long term. Each lender will also vary on what kind of fees they charge. You may be charged an origination fee, prepayment fees, or late payment fees.

Also, remember that if an origination fee is charged, you don’t need that cash upfront. However, the money will be deducted from your loan funds before they’re deposited into your bank account. Make sure you include that amount in your estimates for finances since you’ll be receiving a little less than you originally expected.

All of these factors should be considered as part of your decision-making process. While it may be tempting to accept the first loan offer you receive, that’s probably not the smartest choice for your long-term finances. Give yourself some time to rate shop and compare to make sure you’re really comfortable with the commitment you’re about to make.

Getting a Bad Credit Short-Term Cash Advance

A short-term loan is a type of installment loan because it’s paid back over a fixed time period. However, rather than having years to pay off your loan balance, you usually only have 12 months or even less. In fact, many lenders offer short-term loans over a period of just three months.

Clearly, with such a short payoff period, you probably won’t be able to borrow a huge amount. The minimum is usually around $500 and many lenders keep the maximum as low as $2,500. You’ll most likely need a bank account for this type of loan as well. The exception is going to a shark-like lender that offers payday loans as we discussed earlier.

You’ll be better served to take the time and find either a non-ChexSystems bank or second chance checking account that you can use to qualify with a reputable lender.

Here are some options for lenders or lender networks offering short-term loans. There’s still the option for longer terms lasting several years. But if you’re looking for a small loan amount that can be repaid quickly, you’ll still find that with either of these choices.

MoneyMutual

LetMeBank’s rating
Apply Now
  • Loan Amount
    Up to $5,000
  • Loan Term
    Varies
  • APR
    Varies

Features & Benefits

  • Application takes less than 5 minutes
  • Get a decision on your loan within minutes
  • Funds are available within 24 hours
  • Trusted by more than 2,000,000 borrowers

MoneyMutual is an online marketplace of lenders. They make it quick and easy to find a short term cash advance loan in as little as 24 hours.

One application can potentially get you multiple loan offers. MoneyMutual has been trusted by more than two million customers. They serve borrowers with bad credit from all 50 states except New York and Connecticut.

CashAdvance.com

LetMeBank’s rating
Apply Now
  • Loan Amount
    $200 to $10,000
  • Loan Term
    7 days to 12 months
  • APR
    Varies

Features & Benefits

  • Response by email or phone within minutes of submitting request
  • Money deposited as soon as next business day
  • High approval rate even with bad credit
  • Trusted since 1997

CashAdvance.com provides a free service that quickly connects customers with lenders that offer short-term loans that may work for them.

Whether you have an emergency situation or an unexpected expense, may be able to help you out quickly.

When you pick a loan with a shorter loan term, it’s more important than ever to make sure you have a solid repayment plan because the wiggle room is so small. You’re much more likely to incur hefty fines and penalties when you can’t make your final loan payment after a few short months. Make sure your income is steady and you have room in your budget to cover other financial emergencies that may crop up during your short-term loan.

Do you need a checking account to get a personal loan?

In short, you most likely do need one in order to get a personal loan, regardless of your credit history. The reasons for this are simple. Most lenders directly deposit the funds. Gone are the days of receiving a check or even an envelope of cash, especially if you want the convenience of applying to an online lender.

One exception to this rule is if you visit a brick and mortar lender that offers payday loans or title loans. They may be willing to offer you a check or cash card rather than depositing the funds into your bank account. Sometimes you can even get these types of loans with no credit check. But there are definitely pitfalls when it comes to working with these types of lenders.

You’re likely to get hit with some pretty horrific fees and interest rates. Plus, payday loans require a quick repayment and are often blamed for getting borrowers into a cycle of ongoing debt.

That leads us to the second reason some lenders require a bank account. The lender may also require that payments be automatically withdrawn each month on your due date.

This gives them a little more security and partially accounts for why they’re willing to lend to those with poor credit in the first place. Essentially, autopay from a valid checking account lessens the lender’s risk involved with the loan.

General Eligibility Requirements for a Bad Credit Loan

In addition to having your own checking account, most bad credit lenders have a few other concrete eligibility requirements. Here’s what else you can expect to need in order to improve your chances of being approved.

Age. All lenders in the U.S. require you to be at least 18 years old in order to qualify for your own loan.

Citizenship. You’ll need to be either a U.S. citizen or resident.

Income. Monthly income requirements vary by each lender, but at a minimum, expect to need at least $1,000 a month after taxes. This can be either from employment or benefits.

Contact Information. You’re going to need to supply at a minimum one working phone number and email address so your lender has multiple ways to contact you.

Wondering how to qualify for a loan if you don’t have a checking account?

Not only are there plenty of local banks and credit unions you can find to work with, there’s also an increasing number of online accounts that offer flexible criteria. There are typically two types of checking accounts to look out for.

The first is anything offered by a non-ChexSystems bank. If you have a negative banking history that’s causing your applications to get turned down, you probably have a record in ChexSystems. The key is to find a bank that doesn’t run this check and get approved for an account.

The second option is to look for a second chance checking account. Even if they do look at your ChexSystems record, you could still meet requirements to get an account. Usually, you have to pay a small monthly fee (though not always) and you might have some restricted features. Not only can a second chance account get you back into checking, but it can also get you eligible for that bad credit personal loan you need.

Back to Banking

As you can see, getting a bank account is a crucial part of also qualifying for a loan with poor credit. Today’s digital world practically relies on the ability to transfer funds electronically and there’s just no easy way of getting around this inevitability.

But a checking account can help you in more ways than just qualifying for a bad credit loan. You can sign up for direct deposit, whether received through an employer or through government benefits. You can also avoid the hassle of constantly carrying cash in your wallet or purse and having to rely on expensive prepaid debit cards to shop or pay bills online.

See also: 8 Best Bank Accounts for Bad Credit of 2020

Both a bank account and a personal loan can help rebuild your financial history one step at a time. The longer you manage your accounts responsibly, the more likely you are to receive better interest rates and terms further down the road. If you get a second chance checking account, you can usually upgrade to a regular account within six months to a year. And consistent on-time payments on installment loans can help your credit score steadily rise over time.

With just a bit of research and time, you can set yourself up for a much brighter future with far fewer obstacles when it comes to managing your money. Get both the right checking account and the right bad credit loan today to start on the path to a better financial future.