Six Drawbacks of Choosing Not to Have a Bank Account – Part 1
While it might be hard to believe for some, there are actually quite some people out there who don’t have a bank account. There are several reasons for them to not have one of course, like they prefer to have their cash with them at all times, or that the pre-paid debit cards they use are more than enough for most things they need or that simply put, using a bank tends to be too much of a hassle.
What most of these people don’t know though, is that not having and using a bank account can put several limitations on their financial lives. This of course, does not make having or using a bank account mandatory, yet it still can bring some difficulties along in your life, even on aspects you might have never thought about.
Let’s take a look at six different ways in which not having a bank account can create several problems on your financial life.
1. Required by Creditors:
As you might have though about already, there are situations that will definitely require you to have a bank account, since there are scenarios where your financial information will be needed. For example, let’s say you need a personal loan, a mortgage or other similar things. So if lenders don’t see a history on your of transactions on your bank account, then they might not have put too much faith in your ability to repay any personal loan. To their eyes, you will look as someone that can not even keep a a simple, basic checking or savings account, which will hurt you financially in the future.
2. Needed to Cash Checks:
One of the most overlooked aspects that not having a bank account can hinder you with, is cashing a check. That means that any kind of check, ranging from personal checks, payroll checks, and any other payment that you might receive might not be able to be cashed if you don’t have at least a bank account where to deposit them. Nowadays it is possible to cash check without requiring a bank account, but it requires you to pay additional fees and other related costs for the service. This gets even worse if you get foreign check from a personal loan or something similar, since those tend to be only “cashable” by check-cashing business, which usually take a hefty percentage of the check amount.
3. Needed to Pay Common Bills:
In a world where everything and everyone is connected, it is certainly hard to even imagine paying bills or even occasional payments all by cash and without using a bank account. People without bank accounts usually tend to bypass this by acquiring personal loans and using them to have the bank pay directly to others. They also tend to use money orders and pre-paid debit cards, which can be loaded with money at every mako super market. However, not only these methods can cost substantially more due to the associated fees, but will also generate a tracking problem, since while it is very easy to track a card payment, it is almost impossible to keep an accurate record of, let’s say, a year in cash transactions.
And there you go for today. Check back tomorrow for the remaining three obstacles that might hinder your financial life if you decide not to have a bank account