Learning how to get loans without a bank account is crucial if you're a non-U.S. resident, an undocumented immigrant, or also if you only have a working or student visa and want to borrow money for your business.
You might think it can be next to impossible, and it may be challenging to qualify for something as simple as a credit card to access capital. But if you're in any of these situations and looking for alternatives, let us tell you that it is possible!
This article teaches you how to get loans, the documents you need, and the type of financing you can apply for.
Can You Get Business Loans Without a Bank Account?
Yes! Obtaining capital to invest in your business is absolutely possible, even if you don't have legal immigration status or a valid SSN.
Why do lenders require a bank account?
It can be challenging to get a loan if you don't have a savings or a checking account. Lenders typically require it to verify your identity and income. However, some lenders will work with borrowers who don't have a bank account.
At Camino Financial, you will need a bank account to be approved for one of our loans, whether a person or a business account. You can apply without an SSN and with an ITIN instead.
But why is this? The bank account we'll let us examine your business's cash flows to help define competitive loan terms and rates.
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How to Get a Loan Without a Bank Account: Use Your ITIN
You can still get a loan without a Social Security Number
if you don't have a bank account. One option is to use your Individual Taxpayer Identification Number (ITIN).
Some financial institutions will allow you to use your ITIN instead of an SSN when applying for a business loan.
While not all financial institutions will accept an ITIN in place of a Social Security Number for a business loan—significantly larger financial institutions—community banks, smaller banks, and local credit unions might approve you.
So, in a way, the answer to "How to get a loan without a Social Security Number?" is an ITIN.
What is an ITIN?
An ITIN (or Individual Taxpayer Identification Number) is a tax processing number.
The IRS (Internal Revenue Service) issues this nine-digit number to individuals who are not eligible to obtain a valid SSN but who the law requires to file an individual income tax return.
Obtaining an ITIN will not change your immigration status but will allow you to apply for loans to finance your business.
It is an obligation for every individual in the U.S. to file taxes, regardless of their immigration status. Even undocumented immigrants must file taxes
by law if they are working and earning an income in the U.S.
How to Get an ITIN
Getting an ITIN is a pretty straightforward process. To obtain one, you must:
- Fill out form W-7, available in English and Spanish.
- Present a document that proves your identity, such as a passport or driver's license.
- You must also attach a complete federal tax return. This means the IRS process your ITIN and your tax return simultaneously.
- Send your application by mail, or take it to an IRS office or to a qualified agent for processing.
- In about six weeks, you will receive a letter from the IRS with your ITIN number.
The Benefit of Getting an Individual Taxpayer Identification Number
ITINs initially served the sole purpose of allowing non-U.S. residents to file federal taxes.
Still, they are slowly transitioning into being an alternative to a Social Security Number for immigrants who are hoping to access capital for their business.
More financial institutions and non-profit lenders are expanding their offerings to accept an ITIN in place of an SSN.
Keep in mind that an ITIN does not change your legal status; it only serves as a replacement for an SSN in some instances if you cannot get one.
Loan Options if You Don’t Have a Bank Account
After getting your ITIN, you will need to look for a lender who offers financing with this document.
There are plenty of options for applying for a loan without a bank account: from a private lender, a payday loan, or a peer-to-peer lending platform.
We've listed the financing options to help you find the right for your needs; then, you will have to seek a lender to accept you with an ITIN and with the loan product you need.
Camino Financial's Business Loans
While some other personal lenders are beginning to accept the use of an ITIN instead of an SSN, the opportunities for business loans for immigrants
or without a bank account are still scarce to date. This is especially true at larger financial institutions.
We have designed different business loan types around this fact and allow borrowers to access credit using their ITIN
By doing so, we can uphold our mission of financial inclusion for the Latino Business Owner Community.
Small-business loans range from $5,000 to $400,000, with 21.07% a 52.40% annual interest rate, and they can be a great option if you're looking to expand your business or invest in new equipment.
We understand the importance of a quick approval process. That's why we offer loans to pre-qualified applicants in as little time as possible!
We will evaluate your financials, and if you meet all business loan requirements
, we'll make final approval. Finally, and after you sign the contract, you'll have the loan in your bank account.
Our microloan is a credit product designed explicitly for smaller businesses with lower requirements in terms of approval. The interest rates
on these loans usually range from 27% to 57% but can be as high as 28%.
This type of financing works best when used towards working capital or equipment purchases because it does not require collateral upfront.
Our loan specialists are bilingual, the resources we provide in our blog are in English and Spanish, and we provide our members with educational resources to improve their financial performance in the U.S. and grow their businesses.
We're a financial institution that accepts ITIN numbers to apply for business and personal loans without a bank account; you can use it for most business needs, like equipment, staff, improvements, etc.
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from private lenders may have higher interest rates than loans from banks, but they can still be a good option if you need cash fast.
They are typically for larger amounts of money than payday or installment loans, and you can pay them back over a more extended period (usually three to five years).
Typically have lower interest rates than payday or title loans, but they can still be quite expensive.
The following lenders allow you to apply with an ITIN:
Peer-to-peer lending platforms like Lending Club
, and Prosper
allow you to borrow money from borrowers and investors willing to lend.
These platforms are a good option if you have good credit and can't qualify for a traditional loan.
Short Term Loans
These types of loans are typically smaller in amount, and you have to pay them back relatively quickly, but they can be a good option if you need money right away.
Payday lenders typically offer small amounts (usually $500 or less) and are due on your next payday.
They typically come with high-interest rates and fees, making them very expensive.
In many cases, the lender structures the loan as a lump sum payment, with the entire amount due on the date of the borrower's next paycheck; that's why it is an unsecured loan since the lender won't ask you for any collateral.
In some cases, the borrower may be able to arrange for an extended repayment period, typically lasting two to four weeks.
You might not want to use a payday lender for many reasons.
- The interest rates on payday loans are generally much higher than those on other types of loans, so you could repay considerably more than you borrowed.
- If you miss a payment or default on your loan, this could damage your credit rating, making it harder to get credit in the future.
- Some payday lenders use aggressive debt collection practices, so the debt collectors could pursue you if you fall behind on payments.
Installment loans without a bank
account can be a good option if you need access to quick cash but don't have a bank account.
You can pay these loans in fixed payments over time, so they can help you manage your cash flow.
As you repay installment loans in installments, they can be a good option for borrowers who don't have the lump sum of cash needed to repay a loan all at once.
And, because you can spread out the payments over time, they can also help you manage your cash flow.
Be sure to shop around and compare terms before choosing an installment loan. They usually have lower interest rates than payday loans, but they can still be quite expensive.
Auto Title Loan
Title loans use your car as collateral for the loan. If you can't repay the loan, the lender can repossess your car. Title loans are costly, and you should use them as a last resort.
You can use credit cards for short-term borrowing, but they typically have very high-interest rates and fees.
Your credit limit may be lower than if you had a bank account, you might have to put down a deposit, and you may be unable to build up your credit history quickly.
There are plenty of online lenders who are willing to work with people without bank accounts.
One of the biggest advantages is that online lenders can often offer loans with much lower interest rates than traditional banks.
This can save you a significant amount of money in the long run.
Another advantage of using an online lender is that you can often get your loan approved much faster than if you go through a bank.
This is because online lenders have fewer requirements and can quickly make decisions.
An online lender is often the best option if you need money fast.
Cash Advance Loans
It is possible to get a cash advance without a bank account.
A few options are available to those who need access to cash but do not have one.
One option is to use a prepaid debit card. You can use these cards at ATM machines to withdraw cash. Another option is to get a cash advance from a credit card.
Many credit cards allow cash advances to be taken out against the credit limit. You can use the funds as needed.
Some companies will lend money to people without a bank account.
These companies typically charge high-interest rates and fees. It is important to carefully consider all options before borrowing from one of these companies.
How to open a checking or saving account with an ITIN
If you're an undocumented immigrant in the United States, you may still be able to open a checking or savings account at a bank or credit union.
Many financial institutions will allow you to open an account with an Individual Taxpayer Identification Number (ITIN).
To open a checking or savings account with an ITIN, you'll need to bring:
- Your ITIN card or document
- Proof of address, such as a utility bill, lease, or rental agreement
- A valid photo ID, such as a driver's license, passport, or state ID card
Camino Financial Is Your Next Lender
If you're looking for how to get a loan without a social security number, good news. If you are an immigrant in the U.S., you're eligible for a loan to help you build credit; you only need an individual tax identification number (ITIN).
Why Choose Camino Financial?
Camino Financial is your best business loan option for a variety of reasons that extend just beyond the fact that we accept ITINs:
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- We provide fast funding: our application and funding processes are faster and more convenient than with traditional banks. You can receive your funds directly in your bank account within 2-10 days. Discover how Camino Financial loans work.
- Through the loan application process, we will make sure you know and understand every detail of the business loan you are taking and ensure you are comfortable with your monthly payment requirements.
- Applying won't affect your small business credit score.
- We don't require you to provide collateral when applying for a business loan, so you won't be risking your personal property and assets.
- You can qualify with us: we have fewer requirements and required documents than most lenders.
- At Camino Financial, we provide personalized customer service. We match you with a loan agent who will help you find the best financial solution to meet your unique needs.
Do I need a good credit score to get an online loan without a bank account?
It depends. Some lenders will ask you to have excellent credit scores to apply. Others will approve you if you don't have a credit history but will ask for collateral.
Can you get a loan without a bank account as an illegal immigrant?
Yes, you can!
If you're an illegal immigrant and need "no bank account loans," you can get one; you only need an ITIN (Individual Tax Identification Number).
Camino Financial is a committed lender helping immigrant businesses; we approve business loans without SSN.
Can I apply for a credit card without SSN?
As a matter of fact, yes, you can get a business credit card! There are many credit companies out there that will approve your capital without a social security number.
They will ask you to have either an ITIN or an EIN.
This allows non-permanent residents to finance their business needs.
Do you need a bank account to get a business loan without a bank account or an SSN?
Unfortunately, you won't need an account to apply for business loans; you can do it without a Social Security Number or a bank account.
It will depend on the lender if the account needs to be commercial or if you could use a personal one.
Can you get a personal loan with ITIN?
Yes, you can get personal loans without a social security number.
These are easier to get than business loans because the loan amount and terms tend to be smaller.
This means you can get the credit you need and boost the score on your credit report simultaneously.
Some people use personal loans to finance their business ventures, and while that is fine for businesses that are just starting out, it's not that good of an idea for established small businesses.
Can I get a loan from a bank I don't bank with?
Yes, you can usually get a loan from a bank you don't have an account with, although it may be more challenging to qualify for the best rates and terms.
How can I get a loan with a prepaid card?
If you want to get a loan with a prepaid card, you'll need to find a lender who is willing to work with you. A few lenders specialize in loans for people with prepaid cards, so you should be able to find one that can help you out.
Can I get a loan without a bank statement?
There are a few ways to get a loan without a bank statement. One option is to find a lender who doesn't require a bank statement.
These lenders are usually willing to work with people with bad credit, and they may be more flexible regarding qualification requirements.
Another option is to use collateral instead of providing a bank statement. This means you would put up something of value (like your car or home) as security for the loan. The downside of this approach is that you could lose your collateral if you can't repay the loan.