When you apply for a loan, you need to turn in some documents to prove your eligibility, and one of them is a bank statement. It throws light on your spending behaviour to assure a lender that if you have money left to pay off the loan after meeting all your expenses.
Well, this brings a question to mind if you are eligible to apply for a loan without a bank statement. There are several reasons for not having a bank statement. You may have had your account closed and have not got a chance to open a new one, or you had a salary account that you have had closed. There is no doubt that various financial institutions will not sign off on your application if you do not have an income statement.
Some direct lenders can lend you money even if you fail to submit your income statement, but such options are not many.
If you are out of work, it will not be feasible to submit your bank statement to the direct lender. A lender would always like to consider a current statement to take a look at your finances. With the help of proof, your lender will be able to see your reliability when it comes to paying off a loan. However, having no bank statement and having no income source are two different things.
You are eligible for quick cash loans for unemployed as long as you have some money to repay your debt. Unemployed loans aim to help you when you do not have a full-time job, but at the same time, you should have an additional income source to meet your regular expenses like the unemployed benefits, a part-time job, rental income, and the like.
Payday loans work differently from unemployed loans. As the name suggests, you must have a full-time job to apply for these loans. These loans are so small that you have to pay them back as soon as you receive your paycheque. However, payday loans do not require you to have a bank statement.
You need to fill in the application online in which you will tell the amount you need and submit it along with your payslip. If it seems to be affordable, the lender will transfer money directly to your account.
However, remember that payday loans are minimal and require a lump sum payment, which is why you may find them affordable. Financial experts suggest you should calculate the total cost of the loan with an online calculator so that you do not end up rolling over a loan.
Pawnshop loans are those you take out with a pawnbroker. They also let you borrow a small amount of money, but they have secured loans. You will have to obtain a valuable object. If you fail to pay back the money, you will lose your asset.
Pawnshop loans may be a bit more expensive than payday or any other type of loans that you take out with direct lenders. You will get £20 by putting collateral of worth £100.
A cash advance is 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 purposes.
However, remember that interest will start accruing from the moment you withdraw cash. Further, interest rates can be higher than payday loans. Make sure that you use this facility only when you are in dire need of money. Such loans are highly expensive. You can fall in a debt trap if you do not pay the dues as soon as possible.
Now, you have got your answer. A few loans you can apply for without submitting your bank statement. However, not all of them are affordable options. Before you pick any loan, make sure that you have a repaying capacity. Otherwise, you will fall in a debt trap.
You should also talk to your lender if they have any affordable alternatives. They can help you tide over during a financial emergency.
Emily Rhodes operates as a Senior Content Writer at Easyadvanceloan for 5 years. She oversees the financial planning and monitoring of the cash flow. Emily also helps the firm forecast its financial standing by analysing the operational data and latest reports. It requires detailed research and predicting the trends before arriving at a conclusion. Emily Rhodes’s credible predictions and the best usage of problem-solving and analytical skills help the firm revise financial policies for growth. She ensures the best of her expertise by working in tandem with the CEO and Chief Operating Officer. Academically, Emily is a postgraduate with MBA in Finance from a reputed university.