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No, you don’t always need a bank account to be approved for a payday loan but it does help speed up the process and gets approved quickly.

If you are working with a typical payday loan provider you will need to have a bank account and it is one of the four main criteria that govern whether you will be approved or not. They will likely deny you if you don’t have one.

There are loans available if you don’t have a bank account. These loans are called doorstep loans. Also – in some rare cases you might find a lender with lenient eligibility requirements that don’t require you to have a bank account to be approved. However, it does make it more difficult to get your money if you don’t have a bank account because you won’t necessarily be able to get your loan the same day, the next day, or within 24 hours.


How Does A Doorstep Loan Work?

Doorstep loans are also called emergency home credit loans. They are a type of short-term loan which allows you to borrow a small amount of money fast when you need it.

Doorstep loans are typically for smaller amounts than installment loans or payday loans but are also a type of unsecured loans. This means that the borrower will not need to put up any collateral against the loan. If you had to you would typically secure a loan with property or a car. Some sort of asset.

Doorstep loans are typically used by those with poor credit histories and those without a bank account. When compared to other types of loans it has the highest default rate of any type of personal short-term loan.

They received their names because in the past the lender would typically have to come to your house, or doorstep, to give you the money. Doorstep loans are now available online but still keep their original names.


How Can I Apply For A Doorstep Loan?

To start you’ll need to get in touch or find a doorstep loan company or lender. You’ll need to fill out their application form with a number of details including your name, how much you want to borrow, and for how long. You’ll also need to let them know your financial history and credit score. After that, the company will get in touch with you if they want to loan you the money and will arrange a meeting to discuss the terms and conditions of the loan.

After you have agreed to the terms they will lend you the money in physical cash. This is different from a typical payday loan where they will send the money to your bank account. With a doorstep loan, they give you the money in person. After they give you the money they will then visit your property monthly to collect the weekly or monthly payments that you owe. They will do this every week until you have repaid the total amount that you owe.

When you take out a payday loan the money will be taken out of your account each week or month and you won’t need to speak to anyone. With a doorstep loan, someone will physically come to your property each month which can be quite intimidating. They are sometimes regulated by the FCA but depending on who you work with it might not be regulated by the property authorities.

To make a long answer short, yes you can get a loan without having a bank account but it comes with risks.


A doorstep loan got the name because they used to hand deliver the money to your doorstep.

Why Do Payday Lenders Ask That You Have A Bank Account?

When you work with most payday lenders they require you to have an active bank account. There are many good reasons for this that we will cover below.

When you first apply for a loan one of the first things a lender wants to check is whether you have a regular income. This is one of the key affordability checks because a lender wants to know that you can afford to pay back the loan each month.

Having a bank account also means that they can send you the money quickly after you have applied. And on the flip side, they can take the monthly repayments from your bank accounts to make it easy for you to repay your loan. This is done using something called ACH Authorisation and makes it easy for you to pay back your loan on a set date each month.


What Other Eligibility Requirements Exist?

If you want to apply for a loan with Capital Bean you’ll need to meet some eligibility requirements:

  • Be a US citizen or resident
  • Be over 18 years old
  • Have a live bank or checking account to get your money
  • Steady employment and income of at least $800 per month

What If I Don’t Want A Doorstep Loan – What Are My Options Without A Bank Account?

There are alternatives that exist if you don’t have a bank account but still need money quickly. You could:

  • Borrow money from friends or family on a standard repayment plan
  • Work more – take extra shifts or pick up work on upwork of freelancer
  • Make cuts to non-essentials at home – you could cancel Netflix or go without Starbucks this week.

In some cases, the government will help you out if you don’t have enough money to pay off a bill or tax owed. They can sometimes help you set up a repayment plan and this could help with short-term cash flow.

Richard Allan

Richard Allan

Richard Allan is the founder of Capital Bean and a passionate writer about personal finance, budgeting and how to save money at home and work.

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