 TITLE: Can You Get a Loan Without a Bank Account? CONTENT: Do All Lenders Require Bank Accounts?\n-------------------------------------\nHaving a bank account isn't universally required to borrow money, but lenders who don't require it may be offering subprime loans. \"Subprime\" in this case describes loans that carry high interest rates and fees that are marketed to borrowers who may have a hard time repaying debt, such as those with a low income or bad credit. Certain loans and credit cards can be very helpful to these borrowers—such as government-backed mortgages and secured credit cards—but other types of subprime loans are best to avoid, and may not require a bank account.\nPayday, pawnshop loans and title loans are three types of loans where a bank account may not be necessary. Here's how each works:\n*   **Payday loans**: Payday loans are short-term loans that allow you to borrow a small sum of money (usually $500 or less) until your next paycheck. Payday lenders may ask for a bank account, but sometimes a prepaid card account may be enough to qualify.\n*   **Pawnshop loans**: Pawnshop loans are loans where property of value—such as jewelry or machinery—is used as collateral for the amount you borrow. The lender might give you cash and will hold on to the item until you repay the loan.\n*   **Title loans**: Title loans are loans backed by a car without a lien. You can still drive your car around, but the lender holds the title to your car until you pay off the loan. If you miss payments, the lender may have the right to take your car.\nHowever, payday, pawnshop and title loans are notoriously expensive. The annual percentage rate (APR) on these loans could be 400% or more, and the terms can be restrictive. For comparison, the average APR on a 24-month loan is 9.46%, according to Federal Reserve data for February 2021.\nBecause these loans cost so much and may be difficult to repay, it's almost always best to avoid them. If you can't pay the loan back promptly, fees can add up, leading to a debt trap that's hard to get out of. END