Loans without checking accounts
If you are trying to get a loan, one of the best things you can do for yourself is open a checking account. A checking account is going to not just help you get a loan, but also help you get a loan with good terms. If you are not in a position to open a checking account, it may be difficult, although not impossible, to get a loan. Here are some of the things you should keep in mind:
Checking accounts help you get better rates. If you want a loan, and you open a checking account with the institution at least three months prior to getting the loan, you are likely to get much better rates. The reason is that you have given them a relationship with you, and shown them that you are fiscally responsible, at least in part.
Opening a checking account means developing a relationship with the financial institution. Think of the loan in terms of you and friends. Are you more likely to lend a friend a few bucks, or someone you have never met before? A bank or financial institution is going to look at your checking account as a form of knowing you. If they know you, you get a higher chance of getting funded, and better terms when you are.
Financial institutions can set up automatic payments if you have a checking account. Most banks won't give you a loan if you don't have a checking account, they want you to have one because it makes it easy for them to get paid. They can set up an automatic payment system where the money comes out of your account. This is good for them, and helps them rest assured that they will, indeed, get paid, and thus they are more likely to lend to you. So, again, it will help you get the loan.
If you don't have checking account.what are your options?
Basically, if you can't get a checking account, what can you do to get a loan from a bank? Your best option, and often the only option is to provide some kind of security for the loan. Most people who can't open a checking account, can't do this. But here is how it works.
Provide security for the loan: Basically, let's say you want to borrow $1000. In order to do that you would have to provide something worth $1000 to the bank. For example, you might have to give them a savings vehicle to hold as security. A certificate of deposit, or CD, for example. So, you give them a $1000 CD, and they lend you $1000. Then, when you pay them back, they give you the CD back. It can be a complicated process.
So, the best thing you can do if you want to get a loan is start by opening a checking account.