Why Payday Lenders Request for Your Bank Account Information
Most payday lenders require your bank account information. The reason is that they need your banking details in order to transfer your cash (loan money) into your account as well as to collect your repayment on your due date. That is why nearly every payday lender asks for your account and routing numbers. If you don’t have an active checking account, you may have other limited loan options like an auto title loan, but there aren’t many states that allow them.
Why do payday lenders need my bank account information?
Payday lenders request your bank account details, generally your account number and routing number to verify that you’re eligible for a loan. Almost 100% of direct payday lenders require you to have an open checking account to be considered for a loan.
A lender will use your information to deposit your cash and to repay your loan. When it is time to repay the loan, the lender will debit your checking account for your payment. Without your checking account information, payday lenders cannot transfer funds.
What do lenders do with my bank account information?
Quality payday lenders retain your information for a short time until your loan transaction is completed. Referral sources like CashOne, do not retain your information after a short period of less than 30 days. For your protection, they delete this information even though it is stored in separate servers with special encryption software.
What bank account information do payday lenders ask for?
Payday lenders ask for the routing number and account number from your checking account. They use databases to verify that the numbers are correct before approving your loan. This is done electronically in just seconds.
They will also verify that you meet the minimum requirements for the state you reside in. These may include being at least 18 years of age, a citizen or permanent resident of the U.S., and that you have a steady income from your job or other sources. These requirements vary from state to state, but your lender will explain what is needed.
Is it safe to give out my banking information?
Yes, if you’re applying for payday loans online with a reputable source like CashOne that encrypts and does not share the information. When requesting a loan, make sure the loan request (application) page is a secure, encrypted page for you to submit your information. The page will appear as https:// in your browser. If the site does not have the ‘s’ then you should not use it at all. Your data is not secure!
There are a number of scams out there. Most of these are done by offshore companies who prey on people over the phone by asking for:
- Your personal bank account login details
- An upfront security fee for applying that will be ‘refunded’ with your loan
These scammers will search the internet and use names of legitimate companies and even use local phone numbers that they purchase in bulk. Once they have your money, the numbers are shut off, and your 'deposit' has been transferred offshore to another country. NEVER, EVER pay an upfront fee for any loan of any kind.
They are always SCAMS!
What other information do payday lenders ask for?
Besides your checking account information, payday lenders, or referral services will require you to provide some personal information. This usually includes your full name, date of birth, and Social Security number. They will also need to know your place of employment, your monthly income, your current residence address, and a way to contact you. Cell phones are fine, but you have to have an email address as well.
Even if you are seeking a lender, you should never use insecure websites or pay a fee of any kind to get a loan. If you don't want to provide your bank account information, you will probably not be eligible for a payday loan or most other types of loans.
Need a payday loan from a direct lender that accepts most applicants?
Just fill out our short loan request form, and we will refer you to more than 120 licensed lenders. But only 1 will contact you. It’s easy, fast, and secure with CashOne!
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