Can You Get a Car Loan with Bad Credit and No Bank Account?

Get Car Financing
Even with poor credit.

By

Contributing Writer

David Topham covers the automotive and auto finance industries as the Content Manager of Auto Credit Express who also contributes to CarsDirect. He was born and raised in Michigan and is a graduate of Michigan State University.


, Contributing Writer - December 9, 2016

Yes, you can get a car loan with bad credit and no bank account. Special finance lenders care about many things, including your job, your income and your recurring debt levels, but not your banking activity.

Special Finance Lenders

You would think that getting a loan for thousands of dollars would require that you have a bank account. However, taking out a car loan isn't technically contingent on having one.

There are lenders that serve almost every consumer, and that includes borrowers who either choose not to have a bank account or cannot get one. And if you have bad credit, you are going to need to work with a special finance lender.

Special finance lenders, or subprime lenders, are willing to work with applicants with less than perfect credit. While they still have requirements you must meet, having a bank account is typically not one of them.

These lenders will check your credit reports when making an approval decision, but any information about your non-existent bank account won't even be included in them. Furthermore, with an auto loan, the vehicle is the collateral. This means that the deal doesn't hinge on what may or may not be in your bank account — or on whether or not you have one at all.

Proof of Income

Applying for a bad credit auto loan is usually done through a dealership with connections to special finance lenders. This is because subprime lenders are typically indirect lenders. If your application is approved, you will be asked to furnish the lender with additional documentation. This is done to make sure you have a good chance of successfully completing the loan.

The list of documentation you will be asked to provide usually includes:

  • A valid driver's license
  • Proof of insurance
  • Proof of residence, such as a utility bill addressed to you
  • Proof of a phone in your name from a national carrier
  • A list of at least six personal references
  • Proof of income

Proof of income is perhaps the most important requirement on that list. Lenders need to verify that you are capable of paying back the loan, after all. Usually, a computerized paystub from within the past 30 days with your year-to-date earnings on it will do. If you are a 1099 employee or are paid in tips, be prepared to furnish at least two years of tax returns as proof of income.

As long as you meet the lender's requirements and can provide proof of income (as well as the other documentation), getting an auto loan should be business as usual, regardless of whether or not you have a bank account.

If you are still facing denials, you could try saving up a larger down payment or getting a cosigner with good credit. Or, maybe you aren't working with the right dealership.

At CarsDirect, we specialize in helping people with bad credit or no credit find auto financing. We have a national network of dealerships that can help get you financed and back on the road. Get started today by completing our simple and secure online application.

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, Contributing Writer

David Topham covers the automotive and auto finance industries as the Content Manager of Auto Credit Express who also contributes to CarsDirect. He was born and raised in Michigan and is a graduate of Michigan State University.


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