Is It Possible To Get A Car Financed Without A Bank Account?
Cars can be expensive and not everyone has the money saved away to buy one when they need to. Hence, the majority of vehicle buyers opt for an auto loan. It’s easy to get a loan if you have a bank account and meet all other requirements set forth by the lender.
However, what if you don’t have a bank account? Getting a car financed without an account can be a bit complicated, but it’s still very much possible.
Why Is It Extremely Difficult To Get A Loan Without A Bank Account?
A bank account will provide credible information about a prospective borrower. Lenders use this information to verify your income and expenses. This helps them validate if you can pay the debt back. Simply put, it’s the blueprint of your financial stability.
Most consumers manage their finances through accounts. For instance, salaries and repayments are directly reflected in a bank statement. Lenders can assess your creditworthiness by reviewing these details. If you don’t have any account history, you’ll most likely be asked to furnish a lot of additional documents to prove your income.
Proof Of Income: The Most Important Requirement
Usually, a lender will review your account and factor in any money you’re earning. This will determine whether you’re a good candidate for a loan. However, it’s still possible to take out an auto loan without a bank statement. If you can prove that your income is high enough to cover the monthly repayments, then you’ll have a pretty good chance of getting approved for financing, regardless of your banking situation.
That said, it’s also important to understand that without an account, you may have to settle with a loan from subprime lenders. This means higher interest rates and stringent repayment terms.
Check With Subprime Lenders And Dealerships
Usually, the best car loan offers are reserved for borrowers who meet all requirements. When you don’t have banking history, your credit score will most likely be low. Prime lenders won’t approve your application if you don’t meet their requirements (usually 750+). Moreover, credit unions typically offer loans at low rates to members only.
Therefore, your options will be limited to BHPH dealerships and subprime lenders since these have minimal eligibility requirements. Both are flexible with their credit score requirements. As a borrower, you must be able to prove that you have sufficient income or cash flow that’ll allow you to make the monthly repayments. If you have substantial income proof, you can get the required financing.
There are some other options that don’t require bank statements. Consider these alternatives before you take out a loan from subprime lenders or BHPH dealerships.
Payday Loans Or Title Loans
Payday loans are for borrowers with poor or no credit. Moreover, this option is appealing to people because it has limited requirements.