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Bad Credit Bank Accounts - How To Qualify for Bad Credit Bank Accounts

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Proper money management is critical to the success of any individual in today’s world, but it can be incredibly difficult to handle finances effectively without the necessary tools. Although many consumers simply take their good financial standing for granted, there are plenty of individuals that are afraid that they will be unable to open a bank account with bad credit. Paying cash for every one of life’s daily purchases and relying on money orders to pay other bills is not only a hassle, but it also does not help improve a credit rating and will not make it any easier for a person to ever be approved for a loan. Too many companies now require individuals to pay their bills by automatic draft, and many employers require a new hire to be paid via direct deposit. The good news is that it is not only possible to find a bad credit bank account, but it really is not that difficult provided that the future account holder is aware of several key points.

Almost every financial institution requires a credit check prior to approving anyone for a checking account, but what few people realize is that this simply process is a part of the U.S. Patriot Act that requires banks to properly identify their clients. A beacon score may or may not be used in the account opening process. However, a ChexSystems inquiry will be made by the financial institutions, so it is critical that consumers understand what this entails. Any bank that has been forced to charge off an account in the past will certainly report it to ChexSystems. Other banks will be able to run a person’s information through their computer to see if they actively owe any other financial institutions money. A person that has a hit on ChexSystems will be informed and will be given the opportunity to dispute the information. It is important to note that bad credit bank accounts often allow an individual to qualify provided that they will come up with a written explanation in regards to a ChexSystem report.

Consumers can be plagued with a poor beacon score for many different reasons, and most financial institutions realize that there are certainly going to be extenuating circumstances in some situations. The most common causes of bad credit include the loss of a job, divorce, and unmanageable medical bills. If a consumer has suffered from any of these events, it often helps when applying for bank accounts with bad credit to prove to the institution that the problems were in the past. Even many consumers that have severe blemishes, such as a bankruptcy, can show that they have taken responsible measures since the delinquency occurred. Letters of reference from creditors and personal individuals can help entice a financial institution to make exceptions and allow a consumer to be approved for a bad credit bank account. An individual should also never hesitate to prove a stable job environment, and letters from an employer accompanied by a direct deposit request often result in success.

Few individuals understand that a bank will have requirements per account, but the application will often be approved if any of the proposed account holders qualify. In other words, a wife could allow her husband to be added on to her account even if he would not be eligible for one alone. Bad credit bank accounts are often easy to qualify for if there is another individual that can be added to the account. Financial institutions make their money based on the number of accounts that they have under management, so contrary to popular belief it is not a common practice to find a reason to decline applications. While a bank cannot answer specific questions when they are questioned about the underwriting on a loan, there are no such regulations that prevent an individual from being informed of the reasons they are unable to open an account. Consumers should not give up after receiving a decline, rather they should request more information on bad credit bank accounts and ask if any documentation could help with the process. It is not impossible to open a bank account with bad credit, and individuals need to know that they are not alone with their financial struggles. Consumers are no longer expected to have flawless credit histories, and a bank account is simply too important to avoid.

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