Beware the Phantom Credit Check When Opening a Bank Account
Did you know that banks sometimes perform a hard credit check before allowing you to open an account? While this most often happens when you open an account with an overdraft line of credit, it can happen with plain old checking and savings accounts, as well.
Why should you care?
Because hard credit checks can reduce your credit score. Admittedly, it’s a small effect, so those with stellar credit don’t have a lot to worry about. But if you have borderline credit, these sorts of things can be enough to make move you down into undesirable territory.
How can you protect yourself
The simplest way to protect your credit score is to ask the bank whether or not they’re going to run a credit check. Of course, if you really want/need the account, there’s not much you can do about it, but you’ll at least be making an informed decision.
If you’re familiar with any banks that do a hard credit check during the account opening process, please leave a comment below. I’ll start… I have it on good authority that ING Direct does this with their ING Electric Orange checking account, presumably because they offer an overdraft line of credit.
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As crazy as that nonsense is, what abour insurers (auto , household, even LIFE) will turn you down oR charge you an extremely high rate based on you FICO score (even the fake-o score – they have at least 3 to choose from to justify their actions by citing the lowest “score” that they can find) Remember when these policies were priced based on historical driving records, too many claims, hazardous location such as a flood plain, or age and overall health? All of these greedy policies are just now starting to affect the economy in ways that most people can’t even understand.Sadly, this is just the tip of the iceberg of what is the perfect storm of economic collapse. almost 8 TRILLION and counting in just 5 months *poof* gone.
Comment by bubbs — Nov 26th 2008 @ 5:15 am