Are you a low income earner with little or no spare cash each month?
Is it worth your time opening a bank account, after all you haven’t got anything to put in it have you?
The answer as to whether you should open a bank account even if you are poor is yes, yes, yes!
The bank account announces you to the world of financial organisations like the passport opens the doors to other countries.
Bank accounts are an essential addition to everyone’s portfolio, even the poor.
If you are still relatively young and don’t yet command a huge wage that you think warrants opening a bank account for, think again. As your wage hopefully rises and you ripen to an age where you are considering buying a home for example, potential lenders will first and foremost want to see your financial background.
Imagine if you will, the mortgage adviser sitting at his desk trying to ascertain whether you are a worthy candidate for such a large borrowing.
The first thing he does is to check your credit status on his trusty computer. ‘That’s strange’ he thinks, ‘There is no credit history for this individual. Well I’m certainly not going to be the test case for this young woman’, and with that the case is closed, no mortgage, no new home, you are stuck with your parents till death do you part.
Why were you refused this long term loan? You would pay it back wouldn’t you?
The answer in a nutshell is that due to you not having a bank account, you are not on the credit scoring computers.
The credit scoring system is designed to give financial lenders and institutions some knowledge when considering who is likely to be able to honor their debt.
Points are amassed over a period of time. Each time you apply for credit, get HP, or let a debt go bad, your points are increased or decreased accordingly.
But as for you, you don’t have a bank account so no lender in their right mind would take a punt as to whether they will see their money again from an unknown quantity such as you.
Some form of bank account should be opened as early in life as possible; one simply can’t get any sort of financing without one.
Wages cannot be paid to you in the normal bank transfer manner, not many companies still operate the brown envelope system of paying their staff actual cash as they once did.
It doesn’t matter whether you have a credit balance of a single solitary penny in that bank account, just as long as it is there it will open the doors to every financial need you may have in later life.
Take my advice, don’t fall into the financial black hole that will hinder any future dreams you may hold, get down to a bank with your birth certificate and or passport today and tell them you would like to open an account!