You can’t even imagine opening any business with no capital. So, this is the same situation with the bank. For instance, if you don’t have complete documents and meet banking requirements, the bank will reject you from opening a new account. So, it’s wise if you aren’t taking bank account opening for granted. However, the bank account is the core thing that helps to bring your financial future on track. Thus, if you are struggling with this, then this writing is here to help.
Possible reasons if the bank is denying you from opening an account:
Before giving the solution, it is vital to know the root cause. Financial institutes don’t do anything without any purpose. So, here are possible reasons due to which bank is denying you from opening a new account:
- If you have negative information on the report, the bank will restrict you from opening an account. However, the negative information could include things like unpaid fees if you applied to too many accounts in a short time or too many bounced cheques. Apart from this, fraud suspects could be a reason for adverse bank reports.
- In addition to the above, if you have errors in the report, the bank wouldn’t allow you to open a new account.
- Above all, a bad credit score is one of the leading causes of denying a new account.
So, if you want to open an account, then it’s vital to resolve these issues. But these issues aren’t the main reason behind the denial of any account.
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Other issues for bank account denial:
If you are rejected, then there is something terrible about your credit score. However, if we specifically talk about the bad credit score, then there are the following things that could be at the top of the list:
|Lots of credit inquiries
|Cheques that you have ordered
|Lots of withdrawals
Moreover, if you are involved in theft or any other illegal activity or want to sort out the denial issue, then work on these pointers.
What to do if you are rejected from opening a new account?
Earlier, we have discussed all causes of denial and how to improve the record. According to the record, about 15% of bank consumers deal with bank account denial issues. So, if the bank is denying, you can do the following things for approval.
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Ask your bank to reconsider the application:
Before taking further action, it is a wise step to talk with your bank. Moreover, if you are an existing or old customer of that bank, then it’s in your favor, and you can ask for reconsideration. But if you aren’t an old customer, then still you can use this option. Ultimately, the bank decides to approve a new bank account. But federal agencies and credit unions ask the reason for this denial. So, ensure you know the actual cause, and appeal to the bank to reconsider your application.
Ensure your report is error-free:
Banks deal with documents and figures, so ensure that you are submitting the right ones. For instance, while presenting a credit score, make sure it’s free from errors. Things like social security numbers and other information should be correct. But if you find any mistakes or discrepancies, gather supporting documents to prove in front of banking authorities.
Find an alternative checking account:
If all your documents are correct and error-free, but the bank is still refusing a new account, then you can use an alternative option. If you can’t open an account in a physical bank, then there are plenty of online platforms where you can open an account. Online banks allow opening checking or savings accounts. Here are the names of few options that you can use to open a bank account:
All these online platforms make it easy and deal with all physical and cryptocurrencies. So, these are like a one-stop-shop for all your financial needs. But these platforms don’t operate in any physical setting; that’s why trust issues are always there.
Repair the negative information:
Earlier, we discussed the causes due to which the bank denies a new account. So, the negative information on the report was the top of the issue. However, if you want to eliminate this issue, then try to improve the daunting points. It is recommended to get a copy of your report and work point to point. For instance, clear if there is any outstanding balance with a previous bank or a weak credit score. It may take months to resolve these issues, but later, you can open an account in your favorite bank. You may also consider working with a credit repair company like iMax Credit Repair to help you repair your credit and allow you to get a more competitive interest rate and cut back on the money you pay in interest.
Try a different bank:
If the bank is rejecting your application, it’s wise to find an alternative bank again and again. Banks and credit unions have different rules and criteria while dealing with any supplication. So, if any specific bank is making an issue of any point, then there are chances that other banks will not do this. However, take information from as many financial institutes as you can, and there are chances at the end you will be able to open a new account.
Other options to try to resolve banking issues:
Apart from the above pointers, there are few other things that you can try to resolve banking issues.
- Clear your report
- Try to improve credit score
- Give a temporary chance to prepaid cards
- Use secured credit cards
- Settle if you have any debt, and for this, you can provide a simple invoice as proof.
Note: Before taking any action, don’t forget to request a copy of your credit report. In this way, you can make decisions in the right direction.
It might not be convenient to find an alternative, but you can deal with these challenges by having a two-way strategy. A bank account provides a smooth road to success. So, if your bank is denying you this road, you immediately need to clean your banking history. Moreover, this could work as an alarm to settle your financial matters by adopting better habits. However, after using these suggestions, there is no reason that you will stay UNBANKED for a long time.