I love getting credit card offers in the mail. It’s a way to start fresh each month and build a solid credit score over time. However, someone with a low credit score is less likely to be approved for a home loan and a car loan than someone who has a good credit score. How do people with bad credit get access to a bank account?
It’s not the same as getting credit with no credit. When people with bad credit get a credit card through their bank, they might not be able to get any sort of credit card in the future. Building your credit is one of the best ways to establish credit. However, if you’ve had a bankruptcy or a foreclosure, you can’t qualify for credit. It is possible to get a credit card if you have bad credit but it will cost you in terms of interest.
Low credit score bank accounts are a great way to start establishing credit so you can qualify for other credit cards in time. Also, it’s a good way to improve your credit as long as you use the cards responsibly and never go over the limit.
After you have a bankruptcy or other serious credit issue, you can ask the lender if they offer credit cards to people with bad credit. It’s possible to get that relief of using a major credit card by having an account and establishing a positive credit history.
A low credit score doesn’t mean you can’t get a bank account. Consider any bank that is a national chain. These accounts are most likely to have a credit check, but they may be willing to give you an account without a check. With a little research and patience, you can find one that is willing to give you a break.
You can also look into smaller credit unions or local credit unions. This option is usually the option that offers the lowest interest rates. If you belong to a credit union and have always paid your bills on time, they will probably work with you to get a bank account.
In both of the above examples, it’s important to keep your banking habits in good standing. If your financial habits are solid, you will have little difficulty in qualifying for a bank account. Bad financial habits will mean that you will be denied a bank account or that your account will have a lower interest rate. Banks don’t like customers who are in a financial cycle of being a responsible customer versus a financial cycle of being in and out of trouble.
Being a responsible customer is the best versus the perfect customer status. Keeping an account in good standings can save you money in the long run. You’ll have an easier time getting a new credit card account because you didn’t have any trouble qualifying.
Admittedly, some banks won’t do business with people with bad credit. However, most banks have joined forces to help customers with bad credit. If you live in the right area with the right bank, you may end up being able to sign up for a checking or savings account, a credit card account, or both.
If you’ve run into financial trouble in the past or have had issues with foreclosure, bankruptcy, or a tax lien, you are still qualified for a bank account. You may pay a little more for the privilege of having an account, but if you have a history of taking care of your bills, you will no doubt keep your account in good standing. In addition to opening a checking or savings account, you can get a debit card that can be used at automatic teller machines. With all of these options, having an account will prove to be a positive step in re-establishing your credit.