Can I get a savings account if I have no credit?
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Although banks and credit unions are more likely to look into your banking history to determine your financial trustworthiness, some may also run a credit check on you. If you don’t have an established credit history to look at, these financial institutions may be reluctant to take you on as a customer.
The good news is that it’s not totally impossible to get a savings account when you have no credit. Here’s a closer look at your options.
Get a cosigner
Most teenagers have no way of establishing their credit histories. As a result, a young person can get a parent to cosign on a new bank account. Because the financial institution also takes the cosigner’s credit history into consideration when looking at the application, it’ll be more willing to offer the teen a savings account. There are no age restrictions for using a cosigner and he or she does not have to be a family member.
A cosigner won’t have access to the money in the account unless it’s set up as a joint account. He or she will, however, be responsible for any debts or balances the account holder owes. In the case of a savings account, these charges could include overdrafts or unpaid monthly fees. Before anyone signs on the dotted line, make sure a cosigner knows his or her responsibilities.
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