Bad Credit And In Need Of A Bank Account | Personal Finance ...

Blaming the economy for your bad credit rating or for not being able to get a bank account sounds like a bad excuse for bad management. And yet, there's a grain of truth in it. The last few years have seen a massive crisis of the global financial system, with banks collapsing, unemployment rising to record heights and an entire nation (Greece) on the brink of bankruptcy. Considering the scale of the dilemma, it was hardly a surprise that the problems were quickly passed down to the average man. It didn't take long before getting even a small credit became all but impossible and many found it exceedingly hard to pay their bills. Those who had taken on loans or raked up credit cards debts were struggling to pay them off. An ever increasing number of people were being made redundant and so couldn?t pay their debts and others just simply couldn?t cope with the increasing cost of living. In short: Making ends meet was turning into an everyday challenge.

Bad credit rating : A rude awakening

For some of those affected by the impact of the economic downturn, bankruptcy may have been their only option. Others may have found work and started repaying their debts. But a negative mark had already been left on their credit history. For many of them, the aftermath of the crisis turned into a rude awakening. Rather than being able to get a new job and work their way back into society, they struggled to even get something as basic a bank account, with high street banks turning down a growing number of applicants. The current craze about basic bank accounts and so-called eccounts ? both aimed specifically at people with bad credit ? is an immediate result of this development. And they have both proven a veritable godsend for people who have a bad credit history as there are usually no credit checks and often people are accepted who would be turned down almost anywhere else.

Basic bank accounts : Basic facilities

Needless to say, a bank account for those with a bad credit rating can only provide the most basic of bank facilities. After all, in these difficult times, even banks have become cautious to say the least and will not want to risk doling out money to someone they feel they can not trust. And so, basic bank accounts and eccounts will allow the customer to deposit and withdraw money but will not allow for overdrafts or provide customers with a cheque book. There are bad credit bank accounts, however, which will offer the customer the benefit of a debit card or master card prepaid card. This isn't just a fantastic payment tool which allows you to purchase services and goods at millions of locations. It also allows the card holder to build up their credit score over a period of time. The bank reports back to the credit agency about the customer?s spending pattern. This will show to future money lenders that they are able to handle their money.

Stability : Turning a bad credit rating into a good one

There are other ways of rebuilding credit such as taking out a prepaid card, remaining in the same job, in the same house and with the same bank, as banks like to see stability. Check your credit report for inaccuracies too as they can sometimes contain things that are damaging your credit score. If you are sure your credit report is correct and you have a low credit score then a bad credit bank account will probably be of interest to you. Look online for the very best bad credit bank account options.

The more time you'll invest, the better. The clouds may have cleared a little, but the crisis is anything but over.

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