How to Get A Loan Without Bank Statements

For many loan options, borrowers are required to provide bank statements during the underwriting process. Some non-traditional loan options like auto title loans however are available without bank statements.¹

Continue reading to learn why bank statements are required for many loan options and how you can get a cash loan without having to provide recent account statements from your checking or savings account.

Why Lenders Ask for Bank Statements

Many lenders request or even require bank statements during the loan underwriting process for various reasons. Depending on the type of the loan, the primary reasons include:

• Verification of the borrower’s income: Reputable lenders will generally want to confirm that borrowers have the means to make loan payments given their income and expenses. This is in both the lender’s interest and the borrower’s interest – loan defaults negatively impact a lender’s profitability, and can negatively impact a borrower’s credit rating if the lender or loan servicer reports to the credit bureaus.
• Verification of the borrower’s assets: For some loans, lenders will want to verify the borrower’s assets. This can include mortgages where the lender will want to confirm the source of the down payment for the home, or loans that are backed by the assets in the bank account.
• Verification of the bank account information: for loans where the proceeds are disbursed to the borrower’s bank account – personal loans for example – bank statements are often also used to verify the accuracy of the bank account number and routing number that the customer may have entered online while applying. The goal is to catch any typos which would result in the loan proceeds not arriving at the customer’s bank account when the loan is finalized.

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Loans That Require Bank Statements

Several types of loans usually require that borrowers provide bank statements. Typical loans where a recent checking or savings account statement may be required include:

• Loans from traditional lenders like banks and credit unions
• Online personal loans that are disbursed via ACH. Some of the lenders even require that applicants provide their bank statements electronically through services like Plaid.
• Mortgage loans tend to come with the requirement to provide several months of bank statements both for verification of income and source of funds for the down payment.
• Business loans made by commercial lenders will often require business bank account statements to confirm the cash-flows of the business.

Loans That Don’t Require Bank Statements

When specifically searching for loans that don’t require bank statements, borrowers may be left with fewer credit options. In order to find no-bank-statement loans, potential borrowers can:

• Look for loan options without bank account requirement: if you can find loans that don’t require a bank account, you’ll also not be required to provide bank statements as proof of account ownership.
• Look for loan options with flexible income verification: since income verification is one of the main reasons why lenders ask for bank statements, finding a loan option with flexible income verification options can help you get a loan without bank statements. Lender that don’t require bank statements may accept alternative evidence of income such as paystubs, recent tax statements, benefit letters and more!
• Look for loan options that offer a variety of funding methods: if you can find loan options that offer fund disbursement through check or cash pickup at participating money transfer locations, you may also not need to provide account statements from your bank during the loan process.

While the exact rules and requirements for bank statements can vary from one lender to the next, loan products that can be available without having to provide recent bank account documents can include:

• Car title loans: car title loans are secured by the borrower’s vehicle. The increased likelihood of repayment due to the use of the vehicle as collateral often allows title lenders to not require bank statements.
• Other collateral loans: other collateral loans like pawn loans frequently don’t require bank statements since the lender can sell the pawned asset if the loan is not repaid.
• Credit cards and credit card advances: credit cards and card advances are often available without a need for bank statement verification, since credit card companies can use reasonable estimates to determine an applicant’s ability to pay.

What Are The Pros and Cons of Providing Bank Statements For a Loan?

Giving your bank statements to a lender during the loan process can have some pros and cons.

Pros of Providing Bank Statements:

• Several verifications at once: For some lenders, providing a bank statement can take care of several verification items at once. For example, some lenders may accept bank statements to verify an applicant’s income, address and liquid assets all at once.
• Accuracy and smooth funding: for loans that are disbursed to the bank account in question, providing bank statements (or a voided check) can ensure that both the account number and routing number is accurately entered into the loan system and that the loan funds will arrive promptly!

Cons of Providing Bank Statements:

• Safety: Bank account information should be kept as secure as possible to minimize the risk of unauthorized access. Sharing full bank statements as little as possible can be one way to keep this information safe.
• Privacy: Bank statements can include very personal information, especially for applicants that use their bank account debit card for making payments and withdrawals. The transaction history visible on bank statements could include merchant names that give away the type of merchant. For example, the statement could show repeated visits to pharmacies or doctors.

Why Borrowers Might Look for Loan Options Without Bank Statements

There are many good reasons for lenders to request bank statements for verification purposes, but there can be good reasons for potential borrowers to look for loan options without bank statements. Besides the potential cons of providing bank statements listed above, some applicants are looking for loans that don’t require a bank statement simply because they don’t have a bank account. Even though the vast majority of households in the United States have a bank account, around 5.6 million households are still unbanked and therefore not able to provide bank statements!

No matter the reason, with auto title loans serviced by LoanMart, you can qualify for the cash you need without having to provide bank statements.¹

Alternatives to Bank Statements With Title Loans Serviced by LoanMart

In order to qualify for a car title loan serviced by LoanMart, you can use several alternatives to providing bank statements during the underwriting process.¹

For income verification purposes, borrowers can take advantage of several alternatives to show evidence of their ability to make loan payments:⁵

Paystub or Paycheck

A traditional way to provide your proof of monthly income is a paycheck or paystub from the company you’re working for. You definitely receive a paycheck if you do not have direct deposit, and you still may be receiving a “void” paycheck or paystub if you do have direct deposit set up with your employer.

Earnings Statement

Whether you’re receiving a yearly income, or you have another source of income every month ( workers compensation, etc.), you can request an earnings statement from your source of income to provide a breakdown of your monthly/yearly income.

Pension Plan Statement or Award Letter

If you’re retired and receive social security or pension income, your recent statement for your monthly pension income can qualify as a source of income. Regardless if you have the money sent as a check or directly deposited into your account, the pension statement or aware letter can be a proof of income.

Letter from Employment with Verification

If you have a job that pays you in a different way than other employers or you receive money from someone in the form of cash, you can have your employer write a letter as proof of employment. Note that an employment verification call may be required to confirm the letter’s authenticity.

Conclusion

No matter your reason for looking for a loan without bank statements, auto title loans serviced by LoanMart can be accessed without having to provide account statements from your checking or savings account. Apply today or call us at at 855-422-7412 to discuss your options for title loans without bank statements!¹