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A wise guide to…

Getting a loan with no bank account

A poor credit rating can hinder your ability to get a bank account and other financial products such as loans or credit cards. If you don’t have a bank account, it can seriously impact your ability to borrow money, but there are still options available to you.

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Representative 99.8% APR (fixed). Representative Example: If you borrow £500 over 52 weeks at a Representative rate of 99.8% APR and an annual interest rate of 99.8% (fixed), you would pay 52 monthly instalments of £13.41. The total charge for credit will be £197.32 and the total amount payable will be £697.32.
Choose Wisely is a trading style of Choose Wisely Limited and is a free to use price comparison website. Choose Wisely Limited is authorised and regulated by the Financial Conduct Authority as a credit broker not a lender, firm reference number 730574 and is registered with the Information Commissioner’s Office number Z3106681.

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Representative 99.8% APR (fixed).

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If approved, the cash can be in your account in as little as 15 minutes.[†]

Table of contents

Written by Inez Miedema
Read time: ~5 mins
Published: 20th March 2020 Updated: 9th September 2020

Can I get a loan with no bank account?

It can be difficult to get a loan without a bank account, debit card or a savings account. However, there are some specialist services, such as loans with no bank account products, that provide what is known as ‘doorstep loans’.

These loans with no bank account can be more expensive than other forms of loans because you will be a higher risk for the lender. However, no bank account loans or doorstep loans can be a good way to rebuild your credit limit. They can also show that you can handle credit by meeting your repayments on time every month.

Why do banks and loan companies need you to have a bank account?

Every online UK direct lender will require you to have a bank account for the following reasons:

  • Banks need to see that you have the funds needed to make your repayments against a loan
  • They will need a bank account to actually pay your money into
  • They need the facility of the bank account to be able to set up a continuous payment authority or direct debit to collect the repayments

However, as not everyone has a bank account for a number of reasons, there are other options for people requiring specialist loans with no bank account.

What are alternatives to no bank account loans?

Cash loans are a popular alternative to bank account loans. These are sometimes called doorstep loans. Customers can start an application online but it will usually be finalised by a representative of the loan company in the applicants home. If accepted, some providers will deliver cash to your home or some require you to pick it up in branch.

As you won't have a bank account to take payment from, the lender will carry out a different process to make sure you can repay the amount that you have borrowed, plus interest. Among other things they will look at your disposable income, the amount you have available after your bills go out. Repayments will be collected by the lender's account manager on a weekly or monthly basis, at your home. With some cash lenders it's possible for you to make the repaymenst locally, at a lender branch. It's important to know that the interest rates on these types of loan can be high.

Drawbacks of doorstep loans

The interest rates on cash or doorstep loans tend to be extremely high. This is because you represent more risk to the lender. Another thing to remember with no bank account loans is that they tend to come with very heavy penalty fees if you don't stick to your repayments. Failure to make repayments can also have a serious negative impact on your credit score.

This means that you should only take out a no bank account loan if you are certain you will be able to pay it back along with the interest that the lender will tell you about. Otherwise, you could find yourself in more serious financial trouble.

Applying for a cash loan

To get the right kind of loan for you and your financial circumstances, follow Choose Wisely’s Get Accepted application process:

  • Fill out our secure application form online in less than two minutes
  • Choose the loan you want from our selection of lenders who will accept your application
  • Finalise your application with your chosen and if your successful you could receive your money within an hour of being accepted

Get the right bad credit loan

Need more information on low credit loans and how to get accepted?

No bank account loan FAQs

Are there any other requirements for taking out a loan?

Lenders will need information to ensure you can afford to pay back the loan over an agreed amount of time. They will do a hard credit search when you complete the application on the lender’s site. Before that, ensure you check which lenders will accept your application on Choose Wisely.

How do I get a bank account?

If you have bad credit and are looking for a bank account, your best option is a basic bank account. Basic bank accounts are products designed for those with poor credit scores. As the name suggests, these accounts offer a place for you to store your money and pay bills from, though they don't come with overdrafts.

Is it free to open a bank account?

Most banks offer a free bank account option. There are a variety of bank accounts that charge a monthly fee and usually offer some sort of benefit with the bank account but if you just need a starting point to store your money and pay bills from, a basic bank account will be a great way to start managing your finances.

Written by
Inez Miedema
CMO & Take Control Author at Choose Wisely

Inez came on board in the Summer of 2019. Her main focus has been helping as many people as possible find our website through online marketing, writing content and partnership deals. She boasts 6 years of FinTech experience with other brands and has an in-depth knowledge of our customers.

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Important Information.

All of the information in this guide is correct at the time of writing.

Rates shown are quotes based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 3.9%APR to a maximum of 1575%APR Representative and loan repayment periods range from 3 to 60 months.

[*][†] Once accepted, your loan can be transferred to you in as little as 15 minutes. The time that it takes for the loan to show in your bank account will depend on your lender and your bank.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to moneyadviceservice.org.uk.

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
Your score can be accessed for free via any of the main credit reference agencies such as Credit Karma, Clearscore or Experian.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk