Banking’s no longer as simple as it once used to be: To open a bank account nowadays you will, for example, need to be subjected to a credit check. As part of this procedure, the bank will look at your credit history over many years and it will look for payment irregularities, the amount of money you currently owe, what your credit limit is, how much of it you are using on credit cards and whether you have paid your bills on time.
Getting a Basic Bank Account without a Credit Check
Having missed payments or having maxed out your credit cards result in a low credit score, which in turn makes it far less likely that you will be accepted for a bank account. A low credit score will also mean you will find it difficult to get credit anywhere, may have to pay more interest on any loan you do manage to secure or may just be refused outright. Although it is always worth a try to apply for a current account or basic bank account, you should be aware that there is now an alternative available which requires no credit check and has therefore quickly gained in popularity. It is called a guaranteed bank account and puts a world of banking back at your disposal.
No credit checks equals guaranteed acceptance
The main benefit of a guaranteed account is that it is literally guaranteed that you will be accepted when applying for one. This provides it with a decisive advantage compared to the kind of basic accounts offered by many standard banks. These also offer people the chance to get a basic bank account, but frequently involve some kind of investigation similar to a credit check, which means you may still be refused. It doesn’t just make the application a stressful and unpleasant event, but means that banks still refuse many applicants even the most basic services. Bankrupts or unemployed are naturally affected even more by this dilemma.
With a guaranteed bank account, no credit check is necessary because you will not be offered any credit. As a a result, the bank is not taking a risk with you. Because there is no credit, you may have to pay other fees, so this is where you should be careful. Some companies charge more fees than others and it can vary greatly. Read the small print, get reviews from money saving forums and research your options carefully. If you arrive at the decision that a guaranteed account may be valid, then it may well be the ideal option for you.
Guaranteed acceptance equals excellent features
So what does this type of bank account offer? Well, it lets you put money into your account and withdraw it. It give you the option to manage your bank account online. It will more than likely give you the chance to get a prepaid card, which you load with money and spend like a debit card or even like a credit card for online purchases and gaming. In short: It means you can go back to living your former life again or at least to make a fresh start.
Do make sure to research the companies offering bank accounts, though, and make sure you are aware of any fees so you don’t get any nasty surprises. Guaranteed banks have made it easy to get a bank account for everyone, but that doesn’t mean finding the perfect provider is just as simple.