Are you looking to open a bank account, but don’t have a great credit score? The good news is that even with bad credit there are good options available for you. The key is to find the right bank or credit union for your needs.
There are three types of financial institutions that offer checking and savings accounts to people with bad credit: traditional banks, credit unions, and second-chance bank accounts. Each has its own set of requirements, benefits, and drawbacks.
Traditional banks, such as Wells Fargo, are for-profit institutions that are subject to state and federal regulations. They typically offer a wider range of products and services than a credit union, but they also have higher fees.
Credit union refers to not-for-profit institutions that are owned and operated by their members. They are subject to state and federal regulations, but they have more flexibility than traditional banks. This allows them to offer better rates and terms on their products.