What Do You Need To Open A Bank Account Online?

A man is shown researching before opening a bank account online
The Rise Of Online Banking And Credit
Part 1 The Impact Of Internet Loans
Part 2 Advantages And Disadvantages Of Online Banking
Part 3 What Do You Need To Open A Bank Account Online?
Part 4 How To Apply For A Payday Loan Online

It is a simple process to open a bank account online. There is no need to make a separate journey to the bank as all the paperwork can be done electronically through the online platform. Before you get started you will need to assemble a few pieces of data. This includes personal information like your social security number, any government ID like a driving license or passport and details about your date and place of birth. In this article we look at:

  • Supplying relevant information to an online bank
  • Who can open an online bank account
  • Applying online for a credit card
  • How your credit score may be affected by your application

Supplying necessary information to an online bank

The bank will also need contact information via a physical address, an email address and a phone number. Opening a bank account online also requires an initial deposit and this can be made using either a debit or credit card. Or, you can make a direct transfer from another account.

Anyone with a history of bouncing checks may be refused an online bank account

Once you have completed the application for an account and provided all the information requested you can sign using an ‘E signature’. Some banks may also mail you a paper agreement to be signed and returned.

Can anyone open an online account?

The short answer is No. If this happens you will need to pay a visit to the bank or provide some more detailed information. Banks receiving applications will always check your credit score even though you are not asking to borrow money. If the credit score is low or if you do not have a score because you are completely new to banking, you may need to go and show your government ID at the bank.

Under 18s cannot open a checking account but there are options for savings accounts and most banks require a personal visit and you must be accompanied by an adult. Individual banks have separate rules so check first before you begin the process.

Bank managers meeting to discuss credit scores for opening new accounts

Anyone who has a history of bouncing checks or having an unauthorized overdraft may be refused an account. If you are not a US citizen then you need to visit the bank to see if opening an account is possible.

Applying online for a credit card

Applying online for a credit card is not quite as simple as opening a bank account. If you are thinking about applying and are unsure about the safety and the procedure, there are a few factors to consider.

Applying for any kind of credit will have an impact on your credit score and multiple applications will cause the score to be reduced.

Before you go ahead and apply for a credit card it is important to think about the answers to a few questions. Why do you want a card? What will you use it for? Do you intend to pay off the balance in full each month? Are you trying to rebuild a poor credit score? Do you want a card with rewards like air miles? What are the charges going to be? Could a personal loan work better for you instead? And, how much can you afford to pay out each month? These are all important questions that should be thought through before you apply for credit.

Credit history and credit scores

Applying for any kind of credit will have an impact on your credit score and multiple applications will have a direct impact causing the score to be reduced. You can make inquiries about cards and as long as you do not actually apply this will only have a small impact on your score. However, it is always better to do the research first and find the best product and the application most likely to be accepted.

A couple are checking their credit criteria before applying for a pre-approved credit card

Check out the best rates and terms. If your lifestyle includes lots of traveling then a card with cash back or air miles rewards may be more suitable than one with a lower rate. Alternatively, you may want a card with the lowest rate possible and the lowest fees.

Pre-approved credit cards

A pre-approved offer of a credit card may not be all that you imagine. It is vital to check out the rate that you have been offered and compare this to other cards. You will also need to meet all the credit standards criteria before you are actually approved for a card. A pre-approved status is actually the lenders way of enticing you to open an account only with them.

Making an online credit card application

The online application for a credit card requires details of your current and past financial situation. Lenders need information about your salary and whether this includes bonuses or commission. You can also add in income from other sources like a pension or monthly payments from bonds. Lenders also require identification documents, proof of address and other personal details.

If you are not certain about what is required then it is a good idea to contact the lender before submitting the application. In this way you will be sure that all the details requested are supplied. This will enhance your chances of a successful application.

The Rise Of Online Banking And Credit
Part 1 The Impact Of Internet Loans
Part 2 Advantages And Disadvantages Of Online Banking
Part 3 What Do You Need To Open A Bank Account Online?
Part 4 How To Apply For A Payday Loan Online

About the author

David Warren

David Warren is an expert on personal loans across the United States. His career in banking has helped make David the loans specialist that he is today. He shares his analysis and insight into the personal finance industry on onlinecreditusa.com