Payday Loan Lenders and Cash Checking Stores Getting Paid for Services

Bank accounts are pretty important to payday loan lenders online and in store fronts. Studies show that there are 10 million households which do not have an open bank account. Some of these households have never had one while others lost theirs and struggle to open a new one.

Free checking accounts are not so free anymore. This is making banking costly to some consumers. Those who live paycheck to paycheck may not be able to fund the minimum amount needed to open the account or have enough to fund the account each month to prevent monthly fees. About a third of households without bank accounts cannot afford to open one. Others are being declined bank accounts due to bad banking history, poor credit ranking, or not enough required identification. Those people who had accounts but closed them was often due to too many overdraft fees eating at their income.

For those of us who have always had a bank account, it is hard to imagine what a person or household would do without. People are relying on pawn shops, prepaid cards, check-cashing stores or work with cash only. The payday loan lenders need a bank account in order to process a loan. Storefront lenders will hold a check as collateral for payment on your loan. An online payday loan lender will verify your bank account and use ACH debits in order to deposit your loan. Bank accounts are just not what they used to be. Even transferring banks is expensive. Keeping money in one account while having enough to open a second is tough to do. It's like moving to a new apartment. You have to pay the rent for the month at one, but come up with security deposit and first month's rent for the second before you get your old security deposit back. That is a chunk of change which many households cannot afford.

In order to to finances work, people without bank accounts have to pay for banking services. Transactions are fee as long as you have an account, but when you go to a cash checking store, you will be paying services fees for each transaction. Banks will provide some services to non-account holders for a fee. Money orders, bank checks or money transfers will all come with a price. Want to stick to a cash only policy with your finances? You will be paying to cash your pay check as well as spending time or money getting your bills paid as well. Some cash checking stores are looking into creating a place to save money instead of dangerously carrying the cash around on their person.