How to Get an Online Checking Account with Bad Credit

It's hard to deal with daily expenses without access to a checking account. Unfortunately, those with less than perfect credit may have a hard time finding a bank to give them a checking account. There are some things you can do if you're in this situation.

Having bad credit doesn't necessarily mean you're out of luck when it comes to online banking. There are several ways you can get a checking account despite a negative credit score. You may not have as many options with these accounts, but it will still get you what you need for basic banking.

• Scour your credit report. Many people don't realize how common it is for errors to show up. Look over the report and dispute items that are erroneous. You can start most disputes online through the credit bureaus. Also look for small debts that can be taken care of. Even though an unpaid account won't disappear from your credit, it looks much better if it reflects as paid instead.


• Look for banks that offer second chance checking. These accounts are designed for people who may have had some banking issues or credit score issues in the past. There is usually a fee associated with these accounts. There are also fewer perks, such as overdraft protection, but it will provide you with a simple method for banking.


• Look for Internet banks that offer limited accounts. Internet banks will ask for a higher opening deposit and you'll need to have your pay direct deposited. Some of these banks will allow you to mail in transactions, but this can take as long as a week for the check to post to your account. Since these banks require more of an opening deposit they usually accept accounts from those with lower credit scores.


• Consider using pre-paid debit cards. This won't give you access to checks, but you'll be able to pay bills and purchase items online. Most of these allow you to direct deposit your pay directly to the card.