Car Finance Without a Bank Account: How to Get Approved
Car Finance Without a Bank Account: How to Get Approved
Posted on March 14, 2024
Today’s blog post is in answer to a customer question we saw last week. It was an unusual one but interesting enough to warrant a fuller explanation and clarification in case other people were wondering the same thing. The question was ‘Can I get a car loan without a bank account?’
Our car loan team takes it from here.
Car Loans and Bank Accounts
The vast majority of Canadians have one or more bank accounts but not everybody does. That’s why this question was so interesting.
To answer the question directly, yes you can get a car loan without a bank account. But it isn’t easy.
Whether you don’t trust the banks, have always used cash, like to be off the grid, or something else, not everyone manages money in the same way.
Sometimes, credit or financial hardship means not having a bank account. That’s voluntary but understandable if you feel the financial system let you down.
Struggles With Financing a Car Loan Without a Bank Account
While it makes getting a car loan a little more difficult, it isn’t impossible.
For one, having a bank account doesn’t impact your credit score or loan eligibility. As long as you have a sufficient credit score for the loan, you can still get one.
The lender just wants to know if you’re a good borrower, can afford to repay the loan, and can prove it.
If you can do those things, you can get a car loan without a bank account.
You will have to go further in proving your income, proving any savings and ID though. The lender will want to be extra cautious in making sure you are who you say you are and can genuinely afford to repay the loan.
The fact you don’t have a bank account should not preclude you from accessing a car loan.
Not Having a Bank Account
The main challenge with servicing a car loan is making payments. We always recommend setting up automatic payments wherever possible to keep life simple.
Even if you don’t use automatic payments, bank payments are the normal way to pay a loan. But they aren’t the only way.
You’ll need to work with a lender who has branches or who accepts payments through other branches.
If you don’t have a bank account, you cannot use cheques or bank payments. You’ll need to use cash which requires the lender to have branches or a presence somewhere you can pay.
There are a few mainstream lenders who still have a presence in our towns and cities so you may want to work with one of those.
There are also other lenders who will accept alternative payment methods too. Perform some research to see what lenders work with non-standard payment methods or with cash and research their car loans.
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