subject: Do You Need A Checking Account For A Cash Advance Loan? [print this page] In a financial emergency, a payday loan can be of great assistance. When you need cash fast, being able to walk into a lending office and walk out with the money to pay for unexpected expenses in one benefit that makes cash advances so popular. In today's digital world, most times you don't even have to go to a lending store. You can apply for the loan over the internet and have the fund directly deposited into your checking account. As strange as it may seem, some people only have savings account and may be asking themselves if they are able to take advantage of payday loans as well.
Yes, some lenders will allow you to get a loan using your savings account. However, the majority of these lenders will be found online. A lending store usually requires you to have a checking account because they need to be able to present a withdrawal instrument to the bank teller in order to get their money. For a checking account this is a check. However, to get money out of a savings account, you must fill out a withdrawal slip. The only time a bank will honor a withdrawal slip to take money out of a savings account is if the account holder is the one presenting it.
For online payday loan vendors, however, things are little different. They perform financial transactions using an Automated Clearing House (ACH). These services deposit money into, and deduct money from, your account electronically. A withdrawal instrument, such as a check, is not needed. The only thing required for these types of transactions is the bank routing number and the account number. Therefore, you are able to get a payday loan using a savings account if you don't have a checking account.
When searching for lenders online, be certain to read the fine print to make sure that you are able to use your savings account if you don't have a checking account. In some cases you may have to call directly if you are not able to find out by looking at their website. Before you apply for the loan, however, check with your bank to make sure there are no withdrawal restrictions on your savings account. Some banks limit you to 6 withdrawals per quarter, two per month, before they either cut you off from taking out money or begin charging you for each withdrawal beyond the limit.
