Day to day banking is one major aspect of your regular financial activities that can seriously affect your credit record, for better and for worse. But how can you use the banking you already do, to boost your credit rating? Well, there are many different types of bank accounts you can open, each one with a slightly different purpose and aimed at particular type of customer. The key to helping your credit score is to match your banking needs with the right account and ensure you are best served.
To find out which account is right for you, you’ll need to take stock of how you use your current account, what daily services you need, the bank charges you have to pay and even what your plans are in the near future. By assessing these three factors and shedding any feelings of loyalty you have to a particular bank, you can find the perfect account for you.
Bank Account Options
- Personal Savings Account - This is a bank account that is set up for an individual or a couple to save money
- Minor Savings Account - This is a bank account that is set up by a parent, guardian, or grandparent to save money for a minor child. These accounts are usually transferable at the start of college or at a specified age
- Basic Personal Checking Account – This is a checking account that is set up for an individual or a couple. Checks are issued for use on this account. No interest is earned on the Basic Personal Checking Account.
- The Corporate Checking Account- This is an account that is set up for business use. You can have one or more signers on the account depending on the size of your business.
You’ll find each of these types of accounts at most of the high street and best online banks and the beauty of it is: you’re in the driving seat. Pop in and get some free advice and information on the services that come with each bank account offered. Find out the credit limits, the procedure to reclaim bank charges and the perks included a given account. Ask for recommendations based on your usage behavior and remember: you’re under no obligation to sign up and considering the current economic climate; they’ll be extra keen to have you on-board.
Assess Your Needs
Don’t be afraid to assess your needs from a bank account, lay them on the table and seek a solution that fits. By choosing the right account, you ensure that your monthly usage is within the capability and services included in it. This way you avoid any extra fees or unfair bank charges for doing the stuff you need to do.
This is a guest post by John Gregory, who works within the financial claims sector for a company called BankCharges.com. John Gregory is not affiliated or endorsed by LPL Financial.
Securities offered through LPL Financial, Member FINRA/SIPC.
