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We all need a bank account for managing our transactions, including people who are bad credit risks. However, as it is well-known those, who have bad credit run up against many difficulties finding a bank that is willing to open a checking account for them.
If you find yourself in this situation, to have had returned checks in the past and are unable to have a bank account, we at Caporaso & Partners can help you open an online account, guiding you from the beginning to the end or giving you all of the elements of information in the parameters of a simple consultation.
But first of all, give us a little information about yourself and your needs, so we can help you better, by filling out the questionnaire here below.
Who is a client with bad credit or at risk?
The term bad credit risk is usually used for someone who has returned checks or has exceeded credit limits. Or rather, the term credit risk refers to the impossibility of paying promissory notes, credit rates or checks. Although, in a broader sense, there are multiple cases from which bad credit can arise, it should be emphasized that this usually happens because of one very simple reason.
In fact, one of the most common cases is that there aren’t enough funds in the checking account needed to cover the amount of the check or promissory note. Anyway, the credit risk doesn’t depend on the amount that is contested.
Basically, this means that a person can hypothetically, can become at risk even because of just a few Euros. As a result, although it appears rather evident that it’s not at all rare to become a credit risk; despite this, it’s very common for a person with bad credit to become a victim of prejudice and find it difficult to open a checking account.
Can a person with bad credit open a checking account?
So, a doubt that more and more people ask is whether a person with bad credit can open a checking account. Regarding this, the law that is currently in force hasn’t placed any type of ban on it, meaning that it doesn’t deny the right for a credit risk client to open a checking account. In reality, however, there is no lack of credit institutions that deny this possibility to those with bad credit.
In fact, they opt to not accept credit risk clients among their clientele, maintaining that they could be subject to a high risk of insolvency. Therefore, because of this, and opt wanting to run the risk, they deny these people the opportunity. But now it doesn’t always happen like that. In fact, some banking institutions have created a specific checking account for high risk clients, which is different from a normal checking account.
The characteristics of a checking account for credit risk clients
Although a checking account for credit risk clients has features that can be more limited compared to those found in an account defined as standard, they are actually real checking accounts for all intents and purposes. Even if the characteristics of a checking account for credit risk clients can vary from one institution to another, some of their elements are quite common with various banking products. Among the characteristics, we find the fact that the possibility of requesting a credit card isn’t provided for in this type of account, given the reputation of unreliability of the applicant; the same goes for an ATM card, for the same reason. A rechargeable card, associated with the checking account, is usually furnished.
The operativity is another characteristic that marks a checking account for credit risk clients credit risk clients. In fact, this could be limited, or else there might not be the possibility for the account holder to carry bank transfers. As a rule, bank credit lines like, for example, credit, mortgages and loans.
The accounts for credit risk clients, therefore, can be usable both online and offline, but, even with the mixed management of these two channels, through a website or else with the other applications that are available in all checking accounts.
How to find an account for credit risk clients
Although banks aren’t generally inclined to let a credit risk client open a checking accounts checking account, some of them, in fact, have created something called checking account for credit risk clients. So, you might need to dedicate some time to find an account that is, in fact, in line with this client’s profile. The online comparators used by our law firm have proven to be very useful for researching a checking account for credit risk clients. In fact, with just a few clicks, they let you identify, above all, which banks could offer this type of checking account and, furthermore, the online comparators are particularly useful for comparing the specific characteristics of this type of checking account.
In short, the online comparators are a precious, flexible and fast tool for finding the most convenient and useful checking accounts for credit risk clients for this type of checking account holder. When we make a comparison, we carefully examine all the operations they present. In particular, we try to observe the presence of a credit or prepaid card, as well as the account’s operations. This way, in fact, it will possible to avoid underwriting one that offers a very low operational threshold.
The cost of this checking account for credit risk clients is another element that we take into consideration. It’s no coincidence that it’s a practice of many banks, knowing that this type of product is — all things considered — very limited, they increase the fee for having an account.
What can be done if an account for credit risk clients isn’t enough?
Although we can compare various checking accounts, it could be possible that some subjects aren’t satisfied by the operations and the products like, for example, what is inherent to the payment cards.
In that case, it’s a good idea to emphasize the fact that some banks have prepared some additional products, such as, for example, rechargeable cards which will be associated with a bank IBAN. Even then, however, making a comparison will be useful.
If you want to know more and are interested in opening a bank account, send us the above questionnaire and a lawyer from our firm will contact you as soon as possible.
Does bad credit last forever?
If you are present in the registry of credit risk clients and are tired of having to face these difficulties just to be able to use an elementary service like a banking checking account, you can ask to have your name removed forever from the registry. There are various procedures and timetables to do that, depending on the type of the credit risk. In conclusion, obtaining what is known as rehabilitation, the person will be able to open a checking account, from one bank or from another, of any typology, since he is no longer the object of any type of limitation.
