How to open a bank account online for free no credit check
In the current world, having a bank account is necessary. But if you have poor credit history due to unpaid fees, overdrafts or committing banking fraud, you may have a rough time opening a free online checking account in some institutions. You may also need an option that does not require an opening deposit. The good news is that you can still open a bank account online even if you have poor credit. To do this, you first need to understand the steps you need to take. From there you can look for the best banking options available for people who want to open a bank account online for free no credit check. One important thing you need to know is that having a poor credit will only affect your ability to acquire credit; either a loan, credit card or mortgage, but does not hinder you from opening a bank account.
But in some cases, banks may use your credit history to decide whether you can open an online checking account. Some free checking account banks will use your credit score to determine your ability to open an instant checking account no deposit required. So what bank opening options are available for consumers with poor credit?
Opening a bank account with no credit check
Just like most lenders, banks also consider your credit history before granting you access to their products and services and this includes savings and checking accounts. Bank can review a customer’s credit score through several ways. This includes using your credit reports from the three major credit bureaus. Banks use credit reports to determine your credit score, a three-digit number used by lenders to find out your creditworthiness. Credit scores are based on different factors including your ability to repay loans and credit card debts on time. There are also agencies that banks work with to get more information on your credit behavior. ChexSystems, for instance, uses a person’s social security number to know their financial history. This information is then reported to banks which can then look into your account for excessive withdrawals, unpaid negative balances and check fraud. Such things can hinder you from opening a bank account. In case this happens, there are several options available. This includes sorting out the issue or asking if your application can be reconsidered. You can also look for a bank where you can open a bank account online for free no credit check. Here is a breakdown of these three available options.
Sort out your past banking problems
If a bank rejects your application for a new account due to a poor credit past, you can try to fix your banking problems which will in turn help improve your financial history. You can do this by requesting for your ChexSystems report. This can come in handy when the bank you want to open an account with uses this system when evaluating applications for new accounts. But even when the bank does not use CheckSystems, you will still be able to see the issues that need to be corrected and repair your credit history. If, for instance, you have negative account balances-including outstanding loan amounts or you spend more than you had in a past bank account-you can ask the listed banks if they can still be paid back. If you are allowed to, ask them to make changes in your report. If the banks deny your request and your past mistakes are not removed from the report, you can start keeping track of the dates. Negative balances are usually removed from reports after five years. At times, credit reports can have errors, and this also happens with a bank history report. Carefully check your report for any errors and ensure that they are corrected. If the mistakes are not corrected, you also have the option of filing a dispute over such errors.
Ask the bank to consider your application
If you are not allowed to open a bank account due to poor credit, there is no harm in requesting for a reconsideration. They may as well listen to the issues that led to poor credit and make an exception.
Bank account with no deposit required
When opening an account, not all banks require a deposit or perform a credit check. In fact, many options are available for people for people to open a bank account online for free no credit check. This means that you can easily open a bank account online without worrying about a bad credit history. Many banks will also not require you to pay any monthly fee or minimum balance fee. This comes as good news for people who have a poor credit history and want to open a new bank account.
Some banks don’t check banking history
There are also banks that don’t require good credit for you to open a new account. However, there are certain rules that must be followed for you to open an account with the banks. For example, you will need to maintain a minimum balance in your account or make a specified number of direct deposits on a monthly basis.
If you have poor credit, you obviously would want to open an account with a bank that doesn’t look into your financial history. You also will not want to deal with a bunch of rules. Lucky enough, you can still find a bank that perfectly suits your needs.
Evaluate second chance banks
Building your finances when having an unimpressive banking history can be quite challenging. In this case, second banking accounts can come in handy. Second chance banking can be the best option for people with poor financial history and want to control their financial future. These are special accounts for people who are not able to open regular accounts due to poor credit history. Many banks in the United States allow customers with poor credit to open second chance bank accounts. However, most of them may have several fees involved which should be considered when evaluating your options. Bank fees are among the things to look for when opening a second chance bank account. Most second chance banks will also require a huge minimum balance. Some of them will require monthly maintenance fees. However, you can have the account upgraded to a regular bank account if you maintain the account for a year or two depending on the bank.
Features of second chance accounts
Compared to regular accounts, the services provided to second chance account users are limited. There are second chance bank accounts that offer direct deposits. You can also use a MasterCard debit card or visa debit card. However, you will not be allowed to write checks. But this can still be the best choice for people who want to improve their credit and you can still apply for a regular bank account after some period of time.
If you have a second chance checking account, you do not have a ‘normal’ relationship with the financial institution. It is therefore important that you regularity communicate with the bank and let them know that you intend to improve your credit and have a regular account. You also should contact them immediately you notice anything questionable in your second chance account.
The simplest way for people with poor credit to open a free checking account is to look for a bank or credit union that doesn’t consider your credit history. Another option is to have a second chance checking account. If you have poor credit but your records are not in the ChexSystems, it will be easier for you to find banks with free checking and no minimum balance.
If you manage to open a regular account, ensure that all fees are paid and avoid writing checks that you can’t cash. You also should avoid committing any banking fraud. It takes up to five years to get a bad record out of your ChexSystem. The record will improve over time only when you practice good baking. If you have bad credit, it is also important that you improve your credit. Credit history may not be important when opening a bank account, but it can hinder you from getting low-interest loans, credit cards and to some extent, it can also affect your employment opportunities.