Bad Credit: A Surmountable Obstacle
You may be asking yourself: “How can I open a bank account with bad credit?” There is a great amount of consumer concern in regard to dealing with bad credit, no credit or overdrafts. In particular, people may be wondering how to go about opening a bank account with bad credit.
Is it possible to open a bank account online with no deposit and with bad credit? We’ve examined multiple bank accounts for people with bad credit and with overdrafts to determine which one could be the right fit for you.
Image source: Big Stock
In this day and age, your credit score is inescapable, especially online. We all run into bumps in the road of life every now and then, and your credit score might reflect this. If you’re interested in opening a checking account online with bad credit, you might first consider seeing just how bad the damage really is.
See Also: Ways in Which Fintech Companies Are Changing Our World
What’s My Score?
Take a moment to check out your credit score for free, on a website like CreditKarma.com or CreditCards.com, to become more aware of your credit profile. Believe it or not, this is one of the most important things you can do before you open a bank account online with bad credit as you can find resources that will help you learn about different reasons that can improve or decrease your credit score.
Now that you know where you’re starting from, you can move onto looking at opening a bank account with bad credit. Here are some options that have received positive customer reviews as good bank accounts for people with bad credit and with overdrafts.
Don’t Miss: CompleteCase.com Reviews – Get All the Facts Before Using CompleteCase
Secured Credit Cards
If you’ve asked yourself if you can open a bank account with bad credit, consider this option developed with people like you in mind. Secured credit cards offer you the chance to open a bank account online with bad credit. Just getting another credit card won’t help you build or re-establish a positive credit history.
When you get a secured credit card, however, you have the opportunity to open a bank account with bad credit.
As you begin making on-time minimum payments with your creditors and keep your balances relatively low to the credit limit, your payment activity is reported to major credit bureaus. Soon, you will begin to see improvement in your credit score.
It’s important to note that before any secured card is activated, it must be funded with a deposit equal to the credit line. Nonetheless, this is still a preferred method for customers who wish to apply for a bank account online with bad credit and with the intention of improving their credit report.
Here, we’ve broken down some of the facts behind various secured credit cards that could be right for you.
Discover it® Secured Credit Card
The Discover it Secured Credit Card is a great if you want to apply for a bank account online with bad credit. There’s no annual fee and no late fee on the first late payment. In addition, paying late won’t raise your APR.
A definite plus about choosing Discover as a bank account for people with bad credit and with overdrafts is that it offers its amazing rewards program to secured cardholders. You can earn 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter.
On all other purchases, you can earn 1% cash back. For new card members, Discover automatically matches all the cash back you’ve earned at the end of your first year.
There is a minimum security deposit amount of $200 or more that will establish your credit line, so if you’re looking for bank accounts for people with bad credit with overdrafts then you might consider saving a bit first before opening a card.
However, at twelve months, monthly reviews will determine if you qualify to get your security deposit back while you continue to enjoy your Discover card benefits.
Discover has a longstanding history with customer satisfaction, which makes it no surprise that this is a popular choice for people looking to open a bank account online with bad credit.
Capital One® Secured MasterCard®
There is no annual fee if you’re interested in opening a bank account with bad credit with Capitol One. With responsible card use, you will receive credit building benefits while your activity is reported regularly to the 3 major credit bureaus.
You can get an initial $200 credit line after making a security deposit of $49, $99 or $200, determined based on your creditworthiness.
A plus of the Capitol One Secured MasterCard is that after making first 5 monthly payments on time, you will get access to a higher credit line, no additional deposit needed. The card is accepted at millions of locations worldwide.
Like many other cards, you can easily manage your account 24/7 with online access, by phone or through using a mobile app. So, if you want to open a bank account online with bad credit, you could consider checking out Capitol One’s secured credit card.
Many Capitol One Secured MasterCard reviews praise how easy it is to open a bank account online with bad credit using this card. In comparison to other cards, it seems to be one of the leading choices for consumers looking to improve their credit.
First PREMIER® Bank MasterCard® Credit Card
First Premier Bank’s Credit card does require a checking account, but once your account is opened, you may use your credit card at millions of merchants worldwide (subject to available credit). For people who want to open a bank account online with no deposit and bad credit, you could consider this card. First Premier Bank is a top 20 issuer of MasterCard Credit Cards.
USAA Secured Card® Platinum Visa®
Today, USAA membership is only open to U.S. military service members, veterans who have received a discharge type of honorable, and their eligible family members.
This secured card is a real credit card – not a prepaid or debit card – that helps you build or improve your credit score if you’re opening a bank account with bad credit.
When you apply, you’ll also be opening a USAA 2-year Certificate of Deposit (CD), an interest-earning deposit account that has a two-year term and a $250 minimum initial deposit.
This CD works as your security deposit – the money you put in upfront, from $250 to $5,000 – is the card’s credit limit. Since you can earn interest on your CD, your deposit is guaranteed to grow. As long as you don’t default on your payments, the money is yours to keep.
The card’s chip technology has added security when used at a chip-enabled terminal and greater acceptance worldwide. Although there is a $35 annual fee, the increased security of the card is a great pay-off.
If you’re a current or former service member looking for bank accounts for people with bad credit and with overdrafts, consider the USAA Secured Card as a way of building (or re-building) your credit.
Related: Choice Home Warranty Reviews – Review
All-in-One Change Management Tools
Top Rated Toolkit for Change Managers.
Get Your Change Management Tool Today...
Debit Cards and Prepaid Cards
Unlike credit cards, prepaid debit cards don’t provide a line of credit and do not influence your credit history. However, if you’re looking to open a bank account online with no deposit and with bad credit, this could be a good starting point.
If you frequently spend too much money and wish to curtail your overspending, debit cards and prepaid cards can help you learn positive spending habits.
Midnight Prepaid Visa® RushCard
It’s very easy to sign up and open a checking account online with bad credit. First, you set up your secure PIN and load money to your card with cash or checks or enroll in Direct Deposit. If you enroll in Direct Deposit, you can get your pay up to two days early.
The card offers easy Online Bill Pay to almost anyone – you can pay your rent, utilities or a friend. If you’ve thought about opening a checking account with bad credit, this card can help you keep track of your money on the RushCard app and gives you access to over 23,000 fee-free MoneyPass ATMs from coast to coast. You can get cash or check your balance at no additional cost.
Green Dot® Reloadable Prepaid MasterCard®
This reloadable, prepaid MasterCard also offers 2 days earlier payment when you’re signed up for direct deposit. If you’re worried about opening a bank account with bad credit, no worries here – there’s no credit check to get a card. And this card is one of the great bank accounts for people with bad credit and with overdrafts as there are no overdraft fees, ever.
You will have access to 24,000 free MoneyPass® ATMs. However, at non-MoneyPass® ATMs, you’ll be charged $2.50 for withdrawals, $0.50 for balance inquiries, plus ATM owner fees. You can reload with cash at retailers nationwide and track your money 24/7 with our mobile app – both traits of this card will help you develop better spending habits.
If you’re thinking about opening a bank account with bad credit, check out the Serve card by American Express. This debit card has no credit check, no minimum balance, and no hidden fees. Free Direct Deposit gets you access to your money up to 2 days faster, and you’ll have free ATM withdrawals at over 24,000 ATMs nationwide.
If you want to open a bank account online with bad credit, the Free Online Bill Pay feature and money management tools will likely delight you.
Futhermore, you’ll have American Express service and security 24/7. Shopping online and off will provide you with card membership benefits like Purchase Protection.
There is a $1 monthly fee in most states (no fee for NY, TX & VT), but the perks are worth it.
Popular Article: PRWeb Review | Get the Key Facts Before Using PRWeb
Online Checking Account
Can you open a checking account with bad credit? Thankfully, some banks have provided this option to their customers. If you open a checking account online with bad credit, you will be able to curb impulse spending and can learn smarter ways to manage your money. Even though your credit won’t improve from this, you’ll still be developing financially beneficial habits.
If you’re considering opening a checking account online with bad credit but don’t know which banks offer these services, it could be because these “second-chance” accounts are called by various names. Here’s a look at what popular U.S. banks have opportunities to open a checking account online with bad credit:
| Bank | Second Chance Account Name |
| Bank of America | none |
| Chase | Access Checking |
| Wells | Opportunity Checking |
| Citibank | none |
| U.S. Bank | Second Chance Checking |
| PNC Bank | Foundation Checking |
| TD Bank | none |
| SunTrust Bank | none |
| Capitol One | none |
| BB&T Bank | Money Account |
Some of these banks are more willing to help out customers who’ve made mistakes in the past. Usually, you’ll still face a tight daily spending limit (such as $400 from Chase). But as you rebuild your credit and demonstrate your responsibility, many banks will allow you the chance to switch to a regular checking account.
Here are some other banks that also let customers open checking accounts online with bad credit.
Image source: First National Bank
First National offers the chance to open a checking account online with bad credit. There are no hidden fees or hoops to jump through when starting your account. There is no minimum deposit, so if you want to open a bank account online with no deposit and bad credit, this bank account could be good for you.
You’re offered one Overdraft Forgiveness every 12 months, so if you’re looking at bank accounts for people with bad credit and with overdrafts, this could be a lifeline during a difficult time.
As a cardholder, you receive free bank logo checks, a free Visa Debit card, and free Online and Mobile Banking that make it easy to pay bills, deposit checks, and transfer money.
Nationwide also offers customers the chance to open a checking account online with bad credit. There is a $50 minimum opening balance with no deposit required, but there are incentives for having an increased balance. Once you have over $2500, your annual percentage yield (APY) increases from 0.10% to 0.30%. There is no monthly fee for signing up for direct deposit. It also offers overdraft protection with a linked savings account. If you want to open a bank account online with no deposit and bad credit, then check out this great option.
Read More: Rosetta Stone Review – What You Should Know Before Using Rosetta Stone
Getting Back to Living Life
So, if you’ve been wondering, “Can you open a bank account with bad credit?” then wonder no more. There are many options available for you to open a bank account online with bad credit.
Whether you choose a secured card to rebuild your credit, a pre-paid or debit card to develop better spending habits or you open a checking account with bad credit, there are still options out there for you and your family. As you continue to live life and have expenses arise, it’s comforting to know that opening a bank account online with bad credit is still an option for you.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.