If you take a little time out to look into the idea of a payday cash advance and the venues that make them, then for sure you may have noticed that just about anyone with a job can qualify. That even includes people with bad credit. Even so, if you've been checking into them thoroughly then perhaps you may have noticed that there's the stipulation that you also must have a bank account in order to qualify.

Not just any bank account either because most sites require that it is a checking account. A checking account that's at least 90 days old and for sure if you're going to borrow from a community-based payday lending franchise it will have to be a checking account. So then why this one requirement at all? And why are sites so unbending in their demand that you have one?

Now if you head on into town to try to borrow from a community-based payday lending business, the reason for the checking account is really quite basic. That is that they will require that you leave a post dated check in the amount of your loan payment, so they can cash it when the payment comes due. Now if you don't have a checking account than you certainly can't leave them a post dated check.

So then why do online lenders require that you have a bank account and then why do the majority them insist that it be a checking account? Not just any checking account but account that is at least three months old. The answer here is simple. That's that with no credit check and the loans being high risk, they look to cut that risk by insisting that all applicants show some type of previous financial responsibility by having a checking account that's at least 90 days old.

However, this rule isn't chiselled in stone because in more recent times some sites have began to offer loans to applicants that don't have a bank or a checking account. What they do once you pass the qualification process is they wire you the money. Then when the loan comes due, you simply wire transfer the payment back. It's really a relatively simple and straightforward process, but once again these types of sites are in the minority.

Now one thing to bear in mind though if this sounds like something that you might be interested in is that these types of loans, because of the higher risk, have other things that make them different. For one thing you can expect higher fees and a shorter loan term. Then if you're late on your payment when it comes time to wire the money, you can also expect a higher than normal late payment penalty fee.

Copyright (c) 2011 Andrew Scherer