If you think that you can stroll into any local bank and open a checking account with bad credit, think again!
Options to get a checking account with bad credit
If you have bad credit or worse – owe a bank money, it can be impossible to get a regular checking account from the bank down the street. Not being able to open a checking account is extremely frustrating and embarrassing.
How will you pay your bills? You don’t want to use one of those expensive payroll check cashing businesses. Although your credit history is bleak right now you do have options if you can’t get a checking account due to bad credit.
Online banking account – a Second chance checking account
Search around on the internet and you will find online banks that are reputable and do not check your credit history. The Account Now Visa Debit Card program is an excellent place to get started. There is no credit check and you’ll have access to online bill pay – so it’s just like a checking account…it’s just easier because you can pay bills with the click of a mouse.
Make sure to set up direct deposit from your employer’s payroll department and have your pay checks automatically deposited into your account. This will get you 100% set up!
Watch out for other ‘wanna be’ second chance checking services. These other online banks charge exorbitant fees because they know the customer is desperate for a checking account.
Open a Joint checking account
If you can’t get a regular checking account due to bad credit consider asking a friend or family member to open a joint account with you. – An embarrassing option but one that might be best for you.
Secured credit card
A great way to add positive credit and pay your bills is to obtain a prepaid or secured credit/debit card. A secured credit card requires that you make a deposit towards your account. Your credit limit will be anywhere from 50% to 100% of what you have deposited.
For example, if you deposit $1,000 your credit limit will be at least $500 and at the most $1,000. These card companies are known to charge a lot of fees. It’s important to shop around to find the best secured card for you. Also, before you apply for a secured credit card make sure the card company reports to the credit bureaus. Not all of them do.
Your efforts will be fruitless. Pay your bills with this card and be sure to make payments on time! The goal of having the secured credit card is to demonstrate to other lenders that you have recently been responsible with credit.
Fix your credit issues
If are unable to get a checking account from a major bank chances are you’ve had a number of derogatory items on your credit report affecting your ability to obtain credit.
Once you’ve been denied credit it’s imperative to get a copy of your credit report from all three major credit bureaus. The process to fix credit is one of the most time consuming, frustrating tasks you will ever tackle.
* We were so impressed with Lexington Law that we decided to become a sponsor and put up this website. Get a FREE credit consultation with credit repair experts by calling 1-800-298-4297
Yes, it’s embarrassing and it might even feel shameful to have to come clean with yourself about your spending and borrowing habits. Negotiating with creditors takes time and humility but if you ignore the past it will cost you lots and lots of money down the road. Few things in life are more satisfying than feeling financially responsible. Your future self will thank you for the work you will do to improve your credit score!