Bad Credit Banking Online

There are a number of excellent online banking options for those who have bad credit but do have a computer and internet access. Even people who don’t own a computer can get access to these banking options through computers at the public library or the computers at work.

All a person will need to get online banking is to agree to direct deposit or wire money to an account.

Prepaid Debit Cards

One of the best options for people with bad credit is to get a prepaid debit card. A prepaid debit card is a debit card linked to a bank account. A person with bad credit can get such a card because it only pays out what’s in the bank account.

A great advantage to prepaid debit cards like Account now is that they don’t charge overdraft fees. The bank simply declines payment if the money isn’t available this can be embarrassing but it is far cheaper than bank overdraft fees.

Prepaid debit cards can be used to pay most bills including utility bills and credit card bills. Some prepaid debit card providers like Account now will even pay bills via paper check using their website. You just have to go online and ask the company to send a paper check to a creditor. Electronic bill pay is also available from some of these prepaid debit cards.

Anybody can qualify for a prepaid debit card. Most prepaid debit cards will simply ask you to get your salary, pension or government benefit direct deposited to their account. Those who can’t do this can wire money to the card or deposit it at some banks or check cashing stores. One thing to remember direct deposit is free while you pay to wire money.

Those who get a prepaid debit card must get one with Visa or Mastercard on it. Most but not all retailers take these cards. You can get cash with cards at most ATMS but you will have to pay a fee this fee will probably be cheaper than check cashing stores. Paying bills via a prepaid debit card is usually cheaper than wiring money or sending money orders.

To find a prepaid debit card simply type “prepaid debit card” into a search engine and several options will come up.

Paypal

One good option for bad credit banking that people who do business online often ignore is Paypal. Paypal doesn’t require a credit check and unlike prepaid credit cards it does pay interest. Paypal can used to make a wide variety of payments online, most websites including e-bay take it.

Many people don’t realize that Paypal can be used offline as well. Paypal issues a Mastercard debit card that can be used at most places credit cards are accepted. This means you can pay bills or pay for the groceries with money you make on E-bay or payments for work received online. PayPal will also cut paper checks for payment if you request it.

You can also transfer money from your bank account to Paypal fairly quickly. This means you can protect your money if you’re about to get hit with overdraft fees.

Online Savings Accounts

There are a number of online savings accounts including the one from ING Direct. These savings accounts pay interest and they are fairly easily to use. One advantage to these accounts is that you can deposit part of your money into them from your checking account or Paypal electronically. These accounts are a great way to protect your savings especially if you’re afraid that overdraft fees are about to wipe out your checking account.