How to Get an Online Checking Account with Bad Credit
A checking account is a necessity in today's society. Opening an account online is an option for people with bad credit, providing customers with bill pay, direct deposit and other services for simple money management. Banking online allows for lower transaction costs and 24/7 access to information about your account. Responsible use of your online checking account can lead to obtaining other accounts from your bank, such as credit cards and loans.
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Instructions
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Get a copy of your credit report and correct any errors (see Resources). Small errors on your report can lower your score--any score boost will make it easier to open an online checking account.
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Purchase a prepaid debit card if you do not have a credit card. Most people with poor credit do not have credit cards--but prepaid debit cards can be purchased from a local convenience store. You will need a credit/debit card to fund your account. Put at least $100 on the card, a common amount for an opening deposit.
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Open a basic account at a larger institution (Bank of America, Wachovia). Opening a basic account online with a large bank can often be done if you also add direct deposit from your employer. After the account is open, you will have to visit your human resources office to set up direct deposit. Limited accounts allow the benefits of having a checking account--but limit the number of teller transactions.
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Try an Internet bank, if you are unable to open a basic account. The opening deposit may be higher--but because transactions are completed electronically--Internet banks often have lower score requirements. A few reliable Internet banks are ING Direct, HSBC Internet Account and Emigrant Direct Internet.
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Open an investment account (Merrill Lynch, Fidelity), if opening a basic account at a large bank and opening an account with an Internet bank fail. Investment accounts will require a larger opening deposit, but these banks will often offer a checking account product as well. Your credit score is not used in the decision to open the account.
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