You’re out of money, and you have no checking account. An emergency has come up. If this describes you, please read on. We’re here to help.
You could take the hand tools from your car, the big flat screen from your house, or the discs from your collection and sell them at a pawn shop and raise some quick cash, but how many times can you do that? Because you don’t have a checking account, you can’t just walk into a bank and use the automatic teller or approach a human teller. Without money, it can be hard to find someone with the resources in place to lend to you. Most cash advance lenders require bank accounts before they do business with you. So, what can you do? How do you get a cash advance without a bank account?
First, let’s explore the cash advance. Let’s define it, and let’s discuss it as an option. The truth is you may be able to get a cash advance.
In the world of financial products, two distinct items share the name “cash advance.” They are pretty different from one another. On the one hand, you have a cash assistance program tied to your credit card that can be accessed by swiping your card at an ATM. The other type of cash advance is synonymous with a payday loan, or money you borrow fast and repay on the date your next paycheck arrives.
Everybody needs credit in this world to make up the difference. That is to say that most people use credit to pay for goods and services they could not otherwise afford. For this reason, most people are exposed to various forms of credit. A cash advance is a form of credit. You need funds in a hurry, but you can’t pay it back until later. Because many people have credit cards, they have a cash advance built right into their credit. This is how the cash advance became so popular.
Many people look to their credit card for a cash advance. Credit Cards are an easy and convenient way to get cash from an ATM machine or purchase things when you don’t have cash in your wallet. “What’s in your wallet?” the commercial asks? The answer they want to hear is not, “I have cash in my wallet.” They want to hear, “I have a credit card.” In this fashion, the balance you can use from your credit card is called the available balance. When you use a credit card to get a transaction at an ATM machine, you get a “cash advance.”
You get the easy cash advance, but subsequently, you are charged interest from the moment you take the cash out of the machine. There’s no goodwill between the banker and customer on cash advances. Though financial institutions are willing to do it, they immediately penalize anyone who uses it. Even if you pay it back in 30 days, it’s expensive. You’re stuck paying a big fee up front and a high-interest rate whenever you pay it back.
Whether you end up using a cash advance through your credit card or opt for a payday loan instead, you should know the ins-and-outs of each option, as well as a couple of alternatives:
Get a Prepaid Debit Card
The prepaid debit card won’t help you in an immediate emergency, but once you put money in a prepaid debit card, it is ready to use at your time of need. The obvious question is why are you using such a card? Why not carry cash around?
One of the reasons to use a prepaid debit card is that you can make regular paycheck deposits just like you would with a regular checking account.
They won’t issue your personal checks. The issuer gives you a card to use for transactions. In addition, you can have funds electronically transferred to a prepaid debit card. If you sell items at an online vendor’s website, they can forward funds to your prepaid debit card.
If you use it all the time and can manage your money, some prepaid debit cards are actually free. For example, some prepaid debit card requires you deposit $1,000 a month to be eligible for a fee-free card. That dollar amount is not the balance; it’s just the amount deposited for use every month. You may be able to use such cards at card-issuer-designated-ATMs for free. Anybody else’s ATMs will probably cost a $3 service fee.
The prepaid debit card, when managed correctly, can be as effective as a checking account. You can use the prepaid debit card at most grocery stores, department stores, big box retailers, and anywhere else that accepts it.
Get a Secured Credit Card
You’re borrowing your own money with a secured credit card, but in all other ways, it acts like a credit card. To open one, you must deposit a minimum amount, and that becomes the minimum balance you must maintain.
People with a low credit score can use it to fix their bad credit. Every month, the card service reports to the credit bureaus, so if you pay your bills every month, it may improve your credit score.
You use it like a credit card, and pay the bill off every month. Get to know the secured credit card’s terms before you apply. Try to avoid any card that charges an annual or monthly fee.
Go to a Pawn Shop
You can sell your stuff at a pawn shop. When you have an emergency and need funds, this is a solid way to get cash. It’s basically a collateralized loan. The collateral is whatever you bring in that the shop deems to be valuable. They pay only a small fraction of the retail price you paid for your stuff.
To start, visit a pawn shop, see what they have in inventory, and get an idea of what you have that would interest the pawnbroker. You have 30 days to pay back the loan. Keep in mind that if you fail to pay it off, you will lose your collateral. Fortunately, the default likely will not go on your credit report.
Get a Payday Loan
A payday loan is short-term financing made against your next paycheck. You agree to pay back the loan on your payday along with interest.
If your credit prevents you from using a traditional credit card and you do not already have a prepaid card, then this option might be a solution that works for you.
Get an Auto Title Loan
Auto title loans are similar to payday loans, but instead of using your next paycheck as collateral, you use your car. Depending on the year, make, and model, of your automobile you could borrow up to 20 percent to half the value of your car.
You pay back the loan with interest, and then you get your title back. If you don’t pay back the loan, you don’t get the title back, and eventually, you may lose your car.
This is an option for those who believe they can meet the demands of the loan. Those who cannot would be better served by an option that does not put their car at risk.
We hope that you’ve learned something from these five ways to get cash without a checking account. Some are better than others, and finding the best option requires you considering your circumstances.