As we move toward a more automated society, it is becoming less and less common to find things done the ‘old way’. One example of this is direct deposit, wherein paychecks are deposited directly into an employee’s bank account. This usually requires the routing number for a checking account, and can be completed almost instantly from the employer’s bank account to yours. But what about people who do not have checking accounts?
Financial institutions have been forced to lay more stringent guidelines for those who wish to open accounts with them. The incidence of hot checks and overdrafts have made it difficult for those with poor credit to even think about opening a checking account. And once you’ve been “blacklisted” as a high risk for financial institutions, it is that much harder to get back on your feet. This is especially true when it comes to cash advances.
I doubt anyone – except those fortunate few who are independently wealthy – has never experienced a time of financial trouble. Medical emergencies, car repairs, home improvements and loss of employment can all contribute to the need for some type of cash advance or loan, and when you don’t have a checking account or good credit to fall back on, how is anyone supposed to get ahead again?
Most financial institutions and lending companies require a checking account and proof of employment before they will issue a cash advance. Typically, you will have to fax in your bank statements and check stubs before they will process your application. Some companies do not operate this way; however, consumers must be careful when seeking cash advances from companies with poor or negligent reputations.
If you do not have a checking account and do not think you can open one, you still have options, however unattractive. In order to get ahead, you will probably need help, and there are resources that can help you get out of your bind. Here are a few suggestions for people who need cash advances, but feel they lack the credit or the background to acquire one:
1. Talk to the Bank
Often, when consumers fill out the application for a checking account online, they will be automatically rejected. However, if you go to your local bank branch and speak with one of the employees there, you might be able to “explain your way” into a checking account. Typically, the employees of a bank can open an account for someone if they fell that the person can be trusted. Explain your situation as well as any past discrepancies and see if they can help you. You’ll never know until you ask!
2. Visit a Reputable Cash Advance Lender
Some of the larger, more reputable cash advance lenders will be willing to work with you even if you don’t have a checking account. Although direct deposit is required for most cash advances, some of these companies will disperse cash in hand. Make sure that you don’t have any outstanding debts with other cash advance lenders before you go in, and bring proof of employment as well as any other documentation that might help you.
3. Speak with a Financial Advisor
Financial advisors and credit counselors are experienced in helping people get out of financial ruts. They can advise you as to the best way to obtain a cash advance, or supply you with other options you might not yet have considered. Financial goals should be long-term, not short-term, and if you can get out of debt and repair your credit history, you’ll be entitled to a cash advance for your next financial emergency.
4. Find a Guarantor
Some cash advance lenders will give a cash advance to someone with a poor credit history if they have a guarantor. A guarantor is someone who signs the loan application and guarantees that the debt will be repaid on time. If, for whatever reason, you are unable to pay, the guarantor will be responsible for covering the debt. A guarantor should be someone you trust – a family member or friend – who has the means to pay the loan if you are unable. He or she should have a checking account as well as verifiable employment, and should be willing to risk their financial situation for you.
5. Borrow from Friends or Family
If you have friends or family members who might be willing to lend you some money until you are back on your feet, this might be better than trying to obtain a cash advance. Friends and family rarely charge interest, and they will be more forgiving if it takes you a few extra days to pay the loan back.