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Bad Credit Banks - Bad Credit Banks for Checking Accounts and Loans - Bad Credit Banks for Loans, Bad Credit Banks for Checking Accounts

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Today, your credit rating is everything. If you are experiencing having bad credit for the first time, you may be surprised at all of the opportunities and services that close their doors to you because of a few blemishes on your credit report. With bad credit you will find it difficult to buy a car or receive any other type of loan you once qualified for. You will discover that finding a new apartment to rent is another problem. If you ever do find a new apartment that lets you in regardless of your credit, soon after, you will notice that your utility providers won’t deal with you unless you give them a large deposit first. Want a new cell phone? You had better start looking at prepaid phone plans. Lastly, having bad credit closes standard banking services.

There are two main reasons people deal with a bank: to ask for a loan and to open a deposit account, be it savings or checking. If you have bad credit, some banks will close all of these services to you. The (sort of) good news is that there are a few banks that have chosen to continue to do business with people that have bad credit.

Some bad credit banks have simply found a way to do business with everyone. This doesn’t mean that they don’t check your credit. It simply means that they have specialized services tailored for people with bad credit. While these services are similar to their regular services for people with good credit, there are some noticeable differences.

The biggest difference, you will come to discover, is that there are usually high fees involved for these services. Since, in the bank’s eyes, they are taking a risk in doing business with you, they must recoup their losses by charging high fees. So, even if you do stiff them, they have possibly several months of fees collected from you to make up for any loss.

Bad Credit Banks for Loans

Some banks are willing to give loans to people with bad credit, but very rarely are these loans unsecured. Taking out a new loan from bad credit banks requires some collateral. For most banks, the only collateral they are willing to work with is real estate, whether you own the property outright or you have sufficient equity built up on your existing mortgage.

Bad credit banks that provide home equity loans stills use your credit information even though your equity is used as collateral. This information is used to add fees for the service and to determine the annual percentage rate (APR) of your loan. If you have bad credit your loan rate will be higher than for someone with good credit. This is because, even if you do default on your loan and they seize your property, there are many expenses involved in taking the property, assessing it, and auctioning it before they can recoup their losses from you.

The best way to find bad credit banks for loans is to use an online loan broker. With a loan broker, all you have to do is submit a single application and they will find submit it to as many as two hundred different banks that are known to offer loans to people with bad credit.

Bad Credit Banks for Checking Accounts

Opening a new checking account can be a difficult experience if you have bad credit. Bad credit banks and even some of the biggest standard banks sometimes offer a service called a second-chance checking account for people with bad credit or for people who have marks for undesirable activity in one of the banking reporting agencies, such as Chexsystems. With a second-chance checking account, most banks require that you have direct deposit set up with your employer. This ensures that you will have money deposited into your account on a regular basis to cover any bank fees or overdrafts. Second-chance checking accounts also do not give you check-writing privileges. You must make due with a debit card to make payments from your account.

Some major banks and credit unions offer second-chance checking accounts, including Bank of America, Chase, Wells-Fargo, Suntrust, and Wachovia. Account services, however, vary by location and branch, so call your local branch first to verify. Online banks can also provide checking accounts, such as ING Direct and USAA. Many of these banks have a program for those who do well with their second-chance accounts. If the account remains in good standing for a set period of time, usually 6 to 12 months, they will upgrade you to a regular checking account that has a lower or no monthly fee and gives you check-writing privileges.

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