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Obtaining a Bank Account with Bad Credit History

2012 June 9
by recessionjuice
Obtaining a Bank Account with Bad Credit

Obtaining a Bank Account with Bad Credit History

You can get a bank account with bad credit history that has all the features of a “normal” bank account. Bank accounts offer a secure place to park your money for many people. These types of bank accounts offer debit cards, savings accounts, direct deposit, bill pay, loans, and more.

Since was founded in Washington State we can provide some information to help in the search for businesses that offer bank accounts or replace the role of bank accounts similarly. All information here is applicable to many states, so do not be discouraged if you do not recognized the business names mentioned.

“Nothing is wrong living within ones means, as in living life without obtaining free debt, which boils down to the definition of what “credit” truly is.”-Anonymous

Short to Longer Term Bank Account Solutions

In substitution of a regular bank account, as in Bank of America; consider using a business like Moneytree, as a bank account when facing bad credit history. Moneytree services British Columbia, California, Colorado, Idaho, Nevada and Washington. Referencing Moneytree’s business statement is a good indication of what you should be looking for when looking for a bank account with bad credit history:

“Moneytree is the premier provider of check cashing and payday loan services in the five western states in which it operates. In addition to these core services, Moneytree offers prepaid debit and gift cards,money orders, wire fund transfers through Western Union, and bill pay services” –

Check cashing and short-term pay-day lenders will often have some type of prepaid/re-loadable card that can get your debit/credit card needs accomplished. Additional advantages you will get by obtaining a bank account with bad credit history, is the fact of safely and securely storing money.

Start Saving again…

You can actually start saving again with this, where all the other banks will turn you down.  It typically works like so:

  1. Money is loaded onto your card
  2. You open a free savings account, which is attached to the card account
  3. Transfer money either in or out of your savings/debit accounts

Interest will also be earned on the savings accounts. If choosing a card system with a savings account try to resist moving your money around too much, this just encourages saving.

Before signing up with a business like Moneytree, make sure that their card service offers a savings account. The savings account will go a long way in retaining funds so you may be able to pay some of the bills harming your credit.

Another business that will help you in your solution to a bank account is WalMart. WalMart will cash government, payroll, or tax checks for only $3 on checks up to $1000 and $6 on checks up to $5,000. In this area, WalMart dominates Moneytree. However, be warned that if you have not cashed a check at a WalMart before, your check may be declined. When attempting to cash a check for the first time, do not cash a check over $500. If your check is over this amount, it will likely be declined. Of course, there is no harm in still trying. Let us know if you experience a different result.

Dispute discrepancies on your credit report

Equifax Online Dispute

Never underestimate the tactic of disputing information on your credit report as a way of potentially getting information removed and deleted from your credit record, thus improving your score and ability to obtain credit.

Dispute your credit report with the 3 major credit reporting bureaus

  1. Equifax Credit Report Dispute
  2. Experian Credit Report Dispute
  3. TransUnion Credit Report Dispute

A decent all around credit report that should be reliable is Equifax’s Complete Report. After reviewing the information obtained here, you should be able to get an idea of what bills you may not owe anymore. Any information that you know is false or incorrect should be disputed. Be careful when disputing information, you do not want to awaken an old debt that may be past the statute of limitations for your state; doing so would re-start the time limit for a debt agency to sue.

If you get your credit score to a reasonable level you should also think about a Secured Credit Card as a means to establish good credit. Make sure they will report to the credit bureaus monthly – this will help your credit.

Free sources for your reference

Order your free Credit Report:
Annual Credit Report

Order your free ChexSystems Consumer Report:
Annual Consumer Report

Closing Suggestions

To get a bank account the best way out is to pay your bills that you honestly remember owing. If you have the means – you should pay your bills. Everyone at times will be financially unable to commit. Look up your states statute of limitations, which vary state by state. These limitations spell out the time duration, in which someone may attempt to collect a debt. The financial institution that claims you owe them only has a set amount of time to actually collect or get you to admit you truly “owe” them that debt. After this limit, you may request removal of these marks on your credit report, which will help your credit woes. In some cases, it could be better to simply not pay.