Bad Credit Bank Account: New Age Formula For Credit Defaulters
Many problems may arise when you find yourself with bad credit
. While some credit options may be available, many of us end up with no options at all. A lot of people assume that their bank accounts are directly linked to their line of credit which is not usually the case. Checking accounts are usually only denied when a person owes the banking institution some money. The only time this really ever happens is in case a checking account with overdraft protection is overdrawn. The new account is usually not approved when the amount is not paid back. Finding a bank that will provide you with bad credit bank accounts while you have a bank account in the negative can be tricky.
It may be possible to go out and obtain bad credit bank accounts in these situations. What usually happens is that you simply find the existence of unpaid accounts you had mistakenly forgotten about. You are not likely to be able to obtain a new account, this is mostly due to the new security measures put into effect lately. Before these new security measures were introduced, most banks wont have performed credit checks on those who simply want a savings account. The new laws specify that credit checks and even background checks be performed on all new applicants. Therefore, if you owe money you may not be qualified to open a savings account.
If you have paid off your all your debts and you find that a new bank account has been denied you at first, do not despair, you can reapply after 6 to 12 months have gone by. This is routine for the banks protection and to provide you with sufficient time to build up your financial situation. You may have to explore several banks before you find one who will extend an account that is especially suited to someone with a poor credit history. You may also perform your research online and even may find financial institutions that offer services for bad credit accounts exclusively online.