August 13, 2022
Is It possible to Get a Loan without a Bank Statement?
By : Ellie Brown
To borrow money, you will have to submit some documents like your bank statement and income statement to prove to your lender that you are eligible to pay off the debt. Even though you apply for an emergency loan, a lender will ask for the documents.
Without perusing them, a lender may not be able to sign off on your application, but there are circumstances in which you may not have a bank statement. You will generally need to give a statement of the previous three months as it will give an idea of your spending, and then a lender will determine whether you will be able to pay back the borrowed money.
It may sound weird not to have a bank statement, but the most common circumstances are you have been laid off, and you had only a salary account that you had already closed, or you had to close your account, and you had come across an emergency before you got a chance to open a new account.
Loans where having a bank statement is not compulsory
Here are a couple of borrowing options you should consider when you do not have a bank statement to submit to your lender:
Guaranteed loans for the unemployed
You can take out an unemployed loan if you are out of work. Do not assume that you can borrow money without any income source. If a lender is lending you money, they would like to get it back. This is evident that they will not give the nod to your application if you do not have any money at all to pay off the debt.
To get qualified for guaranteed loans for the unemployed from direct lenders, you need to submit your income statement. For instance, if you receive cash as earnings from a passive income source, you will have to provide details about it to your lender.
Your lender will decide how much you can borrow according to your monthly income. If they find that you have asked for more money than you can afford, they will reduce the lending amount instead of rejecting your application straight away.
Payday loans
You must be thinking about how it is possible to get approval for a payday loan when you have no full-time job, but you do not need to worry because a couple of lenders approve these loans when you have got an offer letter.
An offer letter proves that you have a job and will soon join your new workplace. After a month, you will get your salary, and then you will be liable to pay back the debt. Applying for payday loans is not that difficult.
You just have to fill in the application form to tell how much amount you need, and you will submit an offer letter. The best part is that a lender does not make a hard credit check, which means you will not lose credit points.
They will run a soft credit check to see your past payment behaviour. It is vital to note that payday loans are required to be paid off in a lump sum. It means you need to ensure you will be left with sufficient money after clearing the debt, so you do not face any complications in meeting your daily expenses.
Otherwise, you will have to roll over the loan, and this cycle will keep continuing and eventually, you will fall into debt. Unemployed loans also require a lump sum payment, but a couple of lenders have the facility of weekly instalments.
Pawnshop loans
Pawnshop loans are those you take out with a pawnbroker. Most of the time, a lender will require you to be a homeowner to take out a loan. It cannot be easy to get it when you are a tenant. Some lenders exclusively offer unsecured tenant loans to people, but it is essential to have a bank statement. If you are a tenant and unemployed and have no functional bank account, you can consider taking out pawnshop loans.
These loans are not unsecured because you will have to put down collateral worth much higher than the money you are borrowing. These loans could be quite risky if you do not pay on time because your valuable asset will be repossessed immediately so the pawnbroker can cash it out. These loans can be as expensive as payday loans despite putting down security.
Cash advance
It is defined as a facility that your credit card company provides to withdraw money using your credit card. As long as you have a credit card limit, you can convert it to cash and use it for any purpose. You can withdraw money at the ATM or at the bank.
Needless to mention, interest rates will be higher than payday loans. Experts suggest using this facility only when you are in dire need of money. Cash advances do not include any grace period. Interest rates are charged right away. It is considered an overdraft so try to repay the balance early. You can may end with many debts if you do not pay the dues as soon as possible.
The final word
Now, you have got to know that you can apply for a couple of loans without submitting a bank statement, but you need to ensure that you cannot get money unless you show your income details. Another thing to ponder upon is that you cannot afford all of them.
You need to assess all of your loan options available to you. Do not borrow money unless you are sure about your repaying capacity. Otherwise, you will fall into a debt trap. Do proper research, so you get a loan at the most reasonable interest rates. Talk to your lender if they have any affordable alternatives to help tide you over during a financial emergency.