General Question

Kairi's avatar

Where can I get a loan without opening an account?

Asked by Kairi (510 points ) November 25th, 2013

Every company I have found to get a loan from ends up asking me to create a bank account with them, which I do not want to do because I don’t want to ruin my credit. My credit score is fair, but because of school loans, my bank turned me down. I need to get money together so that I can move out of my parents’ house. I’ve been saving from working, but it just isn’t enough for the area. I just got turned down form an apartment complex (they didn’t say why) and I need to find something ASAP. Any ideas?

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20 Answers

Darth_Algar's avatar

How do you figure on getting a loan without opening an account with the lender?

Kairi's avatar

@Darth_Algar that’s the problem. I don’t want to do that because it will hurt my credit if I open another bank account. I don’t have the money to put into it at the moment either and won’t get paid until after I need the loan for.

Darth_Algar's avatar

Then honestly it sound’s like you’re pretty much shit out of luck. No place is going to lend you money without some sort of account there.

Judi's avatar

getting a loan to move out is not a financial decision that would make you a great credit risk.

Smitha's avatar

Payday loans are easy to get and don’t require any sort of credit check.
A payday Loan is a small cash loan given to an individual based on the fact that the loan is expected to be repaid with their next paycheck. It’s basically like getting part of your next paycheck early. The repayment period is based on how frequently you get paid. The borrower is expected to show proof of employment and a bank statement.
But always remember Easy Money Doesn’t Come Free

Kairi's avatar

@Smitha Thank you! I was told about one once, but then I found out it was a scam with a ton of hidden fees. I’ll keep this in mind while I’m looking. Thanks!

YARNLADY's avatar

The only place you can get a loan like that is from a friend, or as suggested above a Payday loan with a ton of hidden fees.

You will also find that most apartments will charge you a fee to look at your credit report before they will rent to you.

snowberry's avatar

I agree about not taking out a loan just to move out. Have patience, and save up your money just as you have been. And be careful about applying for too many loans just to see if you like the idea. Do it just once, since every time someone else dings your credit because you applied for a loan, it shows up there. This sort of thing happens all the time when people shop for cars. It’s better to get preapproved before you start looking for a car (your interest rate will often be better too). Too many dings, and it’s a warning sign to the next guy, and then your interest rate goes up up up.

livelaughlove21's avatar

Can you please explain to me how opening another bank account will “hurt” your credit? Most banks just require you to open a free checking or savings account with a very small amount of money ($5 in some cases) along with the loan account. After that, you can just forget about it. That account with $5 in it will not affect your credit.

SadieMartinPaul's avatar

Why would a bank account ruin your credit? At least one open bank account is a component of good credit status.

Kairi's avatar

@snowberry I’ve only looked once but they say my application is incomplete but won’t tell me what’s missing to get moving. not sure what to do there. I can pay for most of the rent for the places I’m looking at, I just need a little help.

Kairi's avatar

@livelaughlove21 @SadieMartinPaul from what I’ve been told, if I have open accounts that just kind of sit there, it doesn’t look good. I already have one bank account, and my name is still on my aunt’s checking account as well.

livelaughlove21's avatar

@Kairi An open, unused checking account will not affect your credit in any noticeable way. You were told wrong.

Kairi's avatar

@livelaughlove21 ah okays. Yeah, I figured I may have been, but I didn’t want to risk it.

Judi's avatar

@Kairi , if you have to borrow to pay the rent then you can’t afford it. Period. Next month you will have to pay again and you will also have to pay back the loan. Wait until you have about six months saved up so you can afford to cover emergencies. You are setting yourself up for heartache at this rate.

snowberry's avatar

Agree with @Judi If you have to “have a little help” to meet the rent, you can not afford it. Period. Have patience but you need more monthly income before moving day. Consider looking into renting a room rather than an apartment (I know, we’ve been through this before, and you have reservations about that).—I’m sorry, I know life isn’t much fun for you right now, but you are saving up, right? So keep saving.

Kairi's avatar

@Judi good point. I rechecked at the money that I did have saved, and I actually had enough, plus some my boyfriend gave me to pay the rent, since he’s living there too.

Kairi's avatar

@snowberry I tried to just do a room, but people either never got back to me, ignored me, or didn’t accept pets. I have an apartment set, so now my biggest issue is just actually moving into it.

snowberry's avatar

@Kairi Yeppers, the pet thing might be your biggest hurdle. By insisting on renting a room that allows a pet, you are greatly reducing your chances at getting a room. Still, you can try searching for “roommates” on a search engine. Here is one company, but there are many others, and if you haven’t tried it, you’re missing out: https://www.roommates.com/get_started.rs

Kairi's avatar

@snowberry I’ve tried it, actually. but I never got replies from the people I messaged on there, and they were all pet friendly.

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