Unlike payday loans, which are kind of like pay advances, automobile loans seem like a pretty big deal. It means you're taking out money for something that costs thousands of dollars. So, surely, you'd never be able to take out such a loan without a bank account, right? Checking with local car dealerships may paint a different picture. According to the pros, the most important requirement for taking out a car loan is proof of income. And while a bank account isn't unimportant, taking out a car loan isn't contingent on having one. After all, the automobile itself provides collateral. If the loan isn't being repaid, the lender may repossess it. So, the deal doesn't necessarily hinge on what may or may not be in your bank account -- or whether you have a bank account at all.
Now, let's face it: If you don't have a bank account, you might not have good credit either, which makes you a subprime borrower. We know, it's not a desirable term -- but it's really just between you and your lender. Just know this: As a subprime borrower, your interest rates will probably be much higher than they are for borrowers with more desirable credit ratings. The plus side is that by making on-time payments, you can use your auto loan to help rebuild your credit.
Having bad credit and seeking out unconventional loans may make you vulnerable to scams. Continue reading to make sure you don't wind up a victim of financial fraud.