Let’s take a look at where it is possible to open a bank account for those with bad credit, and how to open a bank account for the unemployed.
Due to the economic downturn, there are quite a few people with bad credit, such as being unable to repay their student loans or failing their business. If you have bad credit, things like bankbooks are seized.
However, there are times when a bank account is required. So, this time, we will take time to find out where a person with bad credit can open a bank account and also find out how to open a bank account for an unemployed person.
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What is bad credit?
bad credit
bad credit
Bad credit is literally a disgraceful name for people who are not trusted in society. The term is now also used as the term defaulter or financial institution delinquent or multi-debtor.
First of all, being delinquent applies when a certain loan is overdue for 3 months or more, or when a credit card payment of 50,000 won or more is overdue for 3 months or more. It is also applied to cases where you do not pay 5 million won or more in taxes and fines for more than one year or not pay more than three times a year.
Reasons for having bad credit
For example, a person with bad credit can stand on the guarantee of someone close to them. At the very least, you may have bad credit because of arrears or unpaid bills. 신용불량자 통장개설
If someone around you asks for a guarantee or joint guarantee, it is highly likely that this person has bad credit. 좋은뉴스
Disadvantages of bad credit
As a disadvantage of being in bad credit, almost all credit finance transactions are restricted. It is difficult to get a job in a company that values credit.
And, if you are recorded as having bad credit at least once, the record will be kept for at least 3 to 5 years even if the bad transaction information disappears after paying off the remaining overdue amount.
As a result, financial transactions are at a disadvantage. However, if it is canceled within 90 days of being registered as a person with bad credit or if the registration amount is less than 10 million won, the record will be deleted as soon as it is cancelled. With such a small amount of money, a person with bad credit can be restored more easily.
Where you can open a bank account for people with bad credit
In the case of bad credit, there are restrictions on opening a bank account as there are disadvantages in using financial institutions. Therefore, there are restrictions on the opening of a bank account in the first major banking sector such as Kookmin Bank, Woori Bank, and Shinhan Bank.
However, at banks such as securities companies and credit unions, even people with bad credit can open a bank account.
1. Securities company
Opening a bankbook for bad credit – securities company
Opening a bankbook for bad credit – securities company
Securities companies operate independently for each branch. And it is difficult to verify the account as it is often for investment purposes.
Therefore, you can use it if you create a CMA passbook under your name at a nearby securities company. The CMA account has an advantage because the interest rate is high, and the fact that it can be opened non-face-to-face is also good.
2. Credit unions
Opening a bank account for bad credit – Credit Cooperatives
Opening a bank account for bad credit – Credit Cooperatives
Credit unions are non-profit financial institutions. Since each branch is operated independently, information is not shared.
Debtors may be at a disadvantage if they apply for seizure at the exact transaction point, but since there are more than 1600 branches across the country, it is virtually impossible for the debtor to apply for seizure accurately.
Credit unions have a feature that allows you to simply open a bank account regardless of your credit rating.
3. Other banks
Opening a bank account for bad credit – Savings Bank
Opening a bank account for bad credit – Savings Bank
In the case of regional banks or savings banks, there are places where even people with bad credit can open a bank account.
Seoul Area – OK Savings Bank, SBI Savings Bank, JT Chinae Savings Bank, Purun Bank, The-K Bank, Minkook Bank, Sky Bank, Yegaram Bank, Live Bank, Accuon Bank, Welcome Bank
Gyeonggi region – Pepper Bank, Yongchang Bank, Anyang Bank, Sangsangin Bank, Geumhwa Bank, Moa Bank, Namyang Bank, Burim Bank, Samjong Bank, Seram Bank, Youngjin Bank, Inseong Bank
Chungcheong region – Asan Bank, Cheongju Bank, Hansung Bank, O2 Bank, Daemyung Bank, Aju Bank
Gyeongsang region – BNK Savings Bank, MS Savings Bank, Ohsung Bank, Union Bank, Daea Bank, Daewon Savings Bank, Raon Savings Bank, Must Samil Savings Bank, CK Bank, Korea Bank, Soulbrain, Jinju Bank, SNT Bank, Dongwon First Bank
Gangwon Region – CK Savings Bank
Notes on opening a bank account for people with bad credit
Opening a bank account for bad credit
Opening a bank account for bad credit
Even people with bad credit cannot open a bank account. However, even if you open a bank account, it can be seized at any time. So, there are a few things you need to be careful about when opening a bank account.
It is recommended that people with bad credit use multiple bankbooks.
It can always be a foreclosure until you pay off your debt.
So, I make and use as many different bankbooks as possible. This will reduce the burden of forfeiting your bankbook.
Bad credit people don’t choose banks that have a high risk of foreclosure.
If creditors seize the bankbook of bad credit, it is difficult to seize all financial institutions in the market realistically. So, there is usually a strong possibility of foreclosure against banks or representative banks near the debtor’s home or workplace.
More specifically, it is not recommended to use a passbook whose information has been disclosed to creditors.
For example, the bank involved in a loan repayment account or a credit card payment account is already known by the creditor. In this case, it is not recommended to use it as it will be the first to be foreclosed.
Use 2 financial institutions instead of 1 financial sector.
1In the case of a bank in the financial sector, when a seizure is applied, all accounts in that bank are seized.
Therefore, it is recommended to open a passbook at a place operated by a cooperative, such as a 2nd financial sector (Saemaul Geumgo, Suhyup, and unit nonghyup) rather than a bank in the 1st financial sector if possible.
2Even if you want to use the financial sector, it is recommended to open a bankbook far from home or work.
Unemployed person opening a bank account
As the conditions for creating an account have become more stringent than in the past, it is basically necessary to submit the necessary documents, undergo screening, and open a bank account.
Opening a new account has become more difficult for those who have difficulty proving income, such as students, unemployed, housewives or retirees. However, if these people can properly explain the reason for opening a bank account, it is possible to open a bank account.
In order to open a bankbook like this, there is a method of directly visiting a bank window, creating a limit account with restrictions, and changing it to a regular account.
Restrictions are: Withdrawal of 300,000 won per day, 1 million won per day when withdrawing from the counter, and 300,000 won per day withdrawal/transfer from ATM.
In order to change to a general account to remove this restriction, you need 1) automatic debit of utility bills over 3 months, 2) credit card payment history, and 3) national pension receipt history. Of course, if you have proof of income, you can get rid of the restriction right away.