Are there Lending Options for Those Without Access to Financial Institutions?
If you are looking to get a short-term advance without a bank account just stop looking. You will not find a company that will give you an advance if you do not have one. It goes against the three basic rules of cash advances which are: you must belong to a financial institution, you must be over 18 and you must make at least $1,000 a month.
The Reasoning
Specifically, checking accounts are what make the unsecured lending industry work. When you get the funds you either get it deposited directly into your checking account or you get a check for the amount of your financing. You will never receive straight cash from anyone because there would be no incentive to pay them back. If you receive a check for your approved amount, you will have to issue a postdated check for the amount of the principal plus interest which the lending company will cash out when it matures. If you did direct deposit, the company will automatically withdraw the money from your portfolio when the balance matures.
What Would Happen Without One
Let us imagine we live in a fictional world where you do not need to belong to a bank or credit union to take out a cash advance. The company would have to figure out someway to prove you receive a monthly income so they know you have the means to pay back the balance. They would have to find another way to ensure payback of the financing since there is no bank information they have access to or check they have to hold as collateral. How would they ensure you paid back the balance? Although a signed contract might be able to work in court, the costs of court would exceed the original amount of money you are trying to get back. What cash lending companies would have to do would be hire people to collect, in unethical ways. The industry would become loan sharking, with people going around threatening bodily harm if the money was not paid back.
The fact that the industry relies on consumers having accounts allow it to be more regulated and not resort to being a petty crime operation. You can't regulate cash when it comes to the short-term financing industry, it's just not possible. You must belong to a bank or credit union when requesting funds. It is the only option.
