Bank Accounts For Bad Credit

A bad credit certainly gets in the way to leading a normal life.

We are judged not so much by the present, but for what we have done in the past. That is the way life goes - and that is the way with banks and other financial institutions. They have to protect their interests and that of their stakeholders. Nothing wrong with that except that second chances become hard to come by, but the fact is, they do come by! And that is a piece of positive news for those looking for bank accounts for bad credit. The route to rebuilding may either be long or it may be short. But does it matter when there is a path to it, regardless of how narrow it may be?

Unlike in the United Kingdom where law mandates the giving of ‘second chances’ to bad credit holders; and there are, as a matter of fact, specialized banks for this purpose, the same is not true for the United States. Nevertheless, there are bank accounts for those with bad credit, such as those provided by traditional banks. One can also try other financial institutions such as credit unions whose rules and requirements may be more relaxed and more on the compassionate side. Here are some examples of bank accounts for bad credit.

Checking Account

There are a number of banks that provide on-line bank accounts for bad credit but these are limited to ‘check cards’ with no check writing privileges. There are also accounts of some reputable institutions including banks that approve checking accounts for those with bad credit. These include Etrade Brokerage (not the Etrade Bank), which has a check card which can be used like a checking account. In time, one may even be given checks as what eventually happened to those with negative credit rating. Compass Bank is reportedly also issuing personal checks under its ‘second chance program.’ Chase Bank offers a debit card with rewards which can be turned into a normal checking account after one year of good standing. Woodforest Bank has also been reported as offering checking account for those with bad credit history. These banks may also allow checking accounts to serve as bank accounts for bad credit.

Savings Account

Savings accounts are also bank accounts for bad credit with overdraft. Some saving accounts offer the same services as checking accounts such as receiving deposits and ATM services. A savings account of good standing may pave the way for the future approval of a checking account.

Investment Account

Another form of a bank account for bad credit is an investment account with investment management companies. For an investment of $ 1,000 they can open a bank account for their clients with a bad credit history.

Salary Account

One can ride on the goodwill of his employer if the latter opens a salary bank account for an employee with a bad credit track record.


Source: Credit Cards For People With Bad Credit Rating

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