How to Get a Personal Loan With a Checking Account

Everyone needs to borrow money once in awhile. When you have a checking account, it may be easier to get the cash that you need, from a variety of different sources. Depending on whether your loan needs are short or long term, and the state of your credit, there are different methods that may suit you. It always pays to be aware of the fees and interest associated with any loan you're considering.

Instructions

1. Investigate an overdraft loan from your bank. A bank will loan money to their customers by authorizing their consumers' cash withdrawals, debit purchases and checks up to a specified amount, even if there is not enough money in their account to cover it. The bank then charges a fee for each overdraft that occurs, and will collect this money from your next deposit. Talk to your bank manager about the option of adding this service to your checking account.

2. Apply for a traditional loan from your bank. If you already have a checking account, your bank may be more than willing to authorize a loan for you. Make sure that your credit score is as high as possible before applying for a loan. You may also consider a loan from your local credit union.

3. Talk to your boss at work about getting a loan from your employer's finance company. If you have direct deposit going into your checking account from your job, the company may be willing to give you the loan you need, and then arrange for repayments by taking the cash out by automatic withdrawal.

4. Consider the services provided by payday loans, also known as cash advances. These companies do not require good credit to qualify, but they do usually require their borrowers to have an active checking account. You can borrow amounts anywhere from $100 to up to $1,500 at one time. The money will be deposited right into your checking account, and when it comes due, will be withdrawn from the same account. These loans usually fall due within two weeks of the initial advance.

Tips & Warnings

• If you decide on a payday loan, be sure to be aware of the high interest fees the lenders charge. This is especially true if they are not paid back right away.

References

• Americans for Fairness in Lending

Resources

• Truth in Lending