Bad Credit Banks Can Do A Lot of Good

In this day and age, there are a lot of people with poor credit. I have seen people from all walks of life that say they cannot get a home, or a vehicle, or a loan because their credit is bad. The worst thing I hear, which only happens occasionally, is when a person's credit is so bad that they cannot even find a bank, and that is where bad credit banks come in. There are some drawbacks to bad credit banks, but for the most part, they do people a lot of good.

One of the saddest things for me to ever see was a dear friend of mine rejected by a bank because his credit was bad and he owed back fees to a bank for overdrafts. He had been down on his luck, and had never intentionally attempted to write a bad check at all. He just did not make the same kind of money he had been making a previous job and assumed he had money in the bank that was not there. When that happened to him, he decided to start looking at bad credit banks to see if he would be accepted. Sure enough, he found a taker.

It was a bank that was attached to a major department store and when he was accepted, I thought he was going to hug the banker who allowed him to open the account. There were a couple of drawbacks. Like most bad credit banks, for instance, this one was not federally insured, and he could not use his debit card at all of the places the rest of us could. It didn't seem to matter to him, though. He now had a bank account, checks and a debit card, and could actually feel kind of like his old self again!

He budgeted his money properly this time and made sure he always had a decent balance in his checking and savings account, all the while singing the praises of bad credit banks. He swore that he would never go back to a major bank again because so many of them had turned him down when he needed their help the most. Well, that did not last long. One of the major federally insured banks to which he had not applied offered him a checking and savings account, along with a debit card that could be used anywhere in the world. He had to take it.

Bad credit banks do serve an important purpose and for some people, they are the only way they do their business. My friend certainly benefited from one, and while I have been fortunate enough to never need one, it is comforting to know they are there just in case.