How to open a bank account with bad credit

open a bank account with bad credit

Opening a bank account is an important part of learning to manage your finances. Luckily, CreditNinja is here to help you learn how to open a bank account with bad credit. 

Having bad credit may affect several aspects of your life. It will probably be difficult to get a personal loan, open a credit card, and get good interest rates. This is why it’s so important to improve your credit score. And one step on the path to improving your credit is to open a bank account and learn to budget. 

Can You Open a Checking Account?

The good news is, that having poor or bad credit score alone probably won’t stop you from opening a bank account. According to CNBC, banks don’t actually check your credit when you open a checking or savings account. However, they probably will check your banking history. 

Because your credit score doesn’t usually affect your banking, many banks will still allow you to open an account. That being said, having a low credit score usually means you have less-than-perfect money habits. So it’s important to avoid poor banking practices if offered a checking or savings account. 

If you consistently have bounced checks or an overdrawn account it can affect your ability to open future bank accounts. Make sure that you’re ready to have a bank account, and to learn best practices when it comes to spending, budgeting, good credit or bad credit loans, and refinancing. 

Are There Banks With No Credit Check To Open an Account?

While banks may not check your credit history or credit score, they still like to make sure you’re a trustworthy account holder. 

Many banks use something called a ChexSystems report when you apply for a new checking or savings account. This report looks at your past banking habits. They will be looking for things like overdrawn accounts, unpaid negative balances, bounced checks, and suspected fraud. 

If you have a good banking history—despite your credit score—you can still get a checking or savings account. And if you can open a bank account, make sure you know how much money you should keep in your checking account.

Can I Open a Bank Account Online With No Deposit?

Many traditional banks will require you to put down a deposit in order to open an account. Luckily, there are now many companies and banks that will let you skip this step. 

One good option would be to find a credit union. A credit union is similar to a bank but typically they have better rates and offers. Credit unions usually only allow people to join based on certain criteria. You may be able to join one based on where you live, or based on your job, or if you have a family member that’s a member of one. 

In addition to credit unions and certain banks, there are now many online lenders/banks that allow borrowers to open bank accounts with no deposit. Simply do a search for “online bank account with no deposit” and see what you can find. 

What Are Second Chance Checking Accounts?

If you can’t open a regular checking or savings account, then a second chance checking account may be for you. 

This is similar to a traditional checking account, but with more restrictions. These accounts are designed to help borrowers with poor banking histories develop better money management skills. Eventually, if you develop better personal finance skills you can graduate to a regular checking account. 

There may be several rules or requirements with a second chance checking account. You may need to pay monthly fees, set up direct deposit, or even take a money management class. Even with these requirements, this may be a better option than having no bank account at all. 

At CreditNinja, we care about your financial future. To learn more about banking, online checking accounts, and personal finance, check out the CreditNinja Dojo! 


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