A lot of people are curious if they can get quick cash loans with prepaid cards. That would allow them to get the loan they need after overcoming the single obstacle that they are facing. That obstacle is a lack of bank account.
Cash Advance Popularity Explained
Instant loans that are given out by legit payday companies are very popular for several reasons. First of all they require no credit checks. Normally the process involves checking a credit report and is required by all of the traditional lenders including banks. The report includes a lot of things but they are mostly concerned with the way that you’ve been settling your financial obligations so far. If you are someone who is desperate to take a loan, then it is likely that you wouldn’t be so proud of what your credit report would say about you.
As opposed to standard loans, overnight cash loans also do not require any additional documents that have to be faxed. In the past borrowers were required to issue checks in order to cover for the full loan amount. A person should only have a bank account and a loan application could be processed right away.
Checking Account Requirement
The problem is that even with the very basic requirements for these loans that are now in place, some borrowers are still having a hard time with them. That’s because they do not even have simple savings accounts that they can use. So the solution that some borrowers are seeing is to use a prepaid debit card in applying for a cash advance loan.
This is one way to get around the fact that an applicant has no savings account in the bank. Prepaid debit cards are much easier to get than regular bank accounts. However most legit lenders may be unwilling to help you out if you don’t have an account.
But there is still a problem in connection with guaranteed cash loans. The fact remains that interest charged is still too high. The reality is that most of people seeking an approval for cash advance loans are not really in the best shape financially. A person who needs a $400 loan for example would have little chance of being able to pay that back in full in the following weeks. In cases like that they end up borrowing again until; they end up owing way more than what they have actually used up.
Look for Alternatives
There are alternatives to these loans from payday companies. They might not have the same day processing or come with no requirements, but they are less likely to place a person in a loan trap in the long run, which is exactly what loans from payday companies are designed to do. Try out these alternatives first so you know more about them.