Let’s say you’re thinking of taking out a car title loan or payday loan to pay for some unexpected expenses. In most cases it’s going to be a problem if you don’t have a bank account that allows direct deposit. But do you need a checking account to get started with the title loan companies in our directory? The answer is almost always going to be, “no you don’t need a bank account”, with some exceptions. With a secured loan the title lender’s main priority is to make sure you have a lien-free car title with enough available equity in the vehicle.
Why does an online title loan company require a bank account?
We work with applicants all the time who are afraid to apply because are used to being turned down with banks or cash advance companies. Most of these larger loan companies will deny you for a loan if you don’t have a checking account which allows direct deposit. The reason for this is simple. A bank or personal loan lender is often offering an unsecured loan that isn’t like offers for online title loans. The money you borrow can’t be offset by the collateral you provide with a vehicle’s pink slip. So an unsecured loan company will be much more stringent if you don’t bring anything to the table and also don’t have a checking or savings account. You can expect the same issues with a payday loan offer as well. Even though the requirements to qualify will be less difficult, you will likely need to show proof that you work with a bank or credit union and can provide a checking account with direct deposit.
This is a secured loan, why does it matter how I get my money?
In most cases you won’t have trouble getting approved for a no bank account loan as long as you provide the following information. You need to of course provide collateral in the form of a vehicle title. If you apply for a high dollar amount and are willing to put up a newer vehicle with low miles it likely won’t be a problem. You will need to show that you’re the person on the actual car title or pink slip. This means a lender will need proof in the form of a State ID or passport. Many online title loan companies will allow you to apply and submit all the documents online. This is more true now in 2020 with the current pandemic restrictions. But even if you apply entirely online you will still need to meet with someone in person to sign the documents and verify you are indeed the person on the pink slip. It’s probably going to be a notary or representative from the underwriting department that meets with you. Count on them to require a vehicle inspection as well.
Can I use a prepaid card instead of a checking account?
Some direct lenders will require some form of a bank account as they need a way to wire or get you the funds. We often see customers work around this requirement by using a prepaid card service. With this option you can have the money deposited into the prepaid account. The cash will often arrive in the same amount of time as with a typical bank checking account.
Bottom Line Requirement To Get Approved
In nearly every situation you can get started on a title loan online without an official checking account or bank account. The secured lender wants to make sure you have the right amount of equity in your vehicle to qualify for an auto title loan. There may be some other small requirements in play. For example, the ability to payback your loan amount on each due date. Even though you hand over the auto title as collateral, any legitimate company will want to ensure you have the means and ability to pay back the amount borrowed.