Millions of Americans don’t have traditional bank accounts. Some use prepaid cards. Others rely on cash. Until recently, that meant no loans.
 

Lenders required bank accounts to deposit funds, verify income, and collect payments. If you didn’t fit that system, you were invisible.

In 2025, that’s finally changing.
 

How lenders are adapting to real life

Fintech companies have realized that people manage money in many different ways. Instead of requiring a traditional checking account, some lenders now work with:

• Prepaid debit cards
• Digital banking apps
• Payroll providers

Benefit deposit records. Approval is based less on where your money lives and more on whether it shows up consistently.
 

What these loans look like

Loans for underbanked borrowers often come with:

• Smaller amounts
• Higher rates
• Shorter terms

But for people excluded from the system, access itself is meaningful. Being able to borrow legally is better than relying on unsafe alternatives.
 

What to be careful about

Because underbanked borrowers have fewer options, predatory products are common. High fees, rollover loans, and unclear terms can trap borrowers quickly.

Always check:

• Total repayment amount
• Late payment penalties
• Automatic debit rules
• Bottom line

Being underbanked doesn’t mean being invisible anymore. Loans are becoming more accessible — but caution is still essential.