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Having a credit card is a great way to have purchasing power and flexibility. However, there are a few prerequisites for obtaining a credit card, including an established credit score and a physical mailing address. But do you need a checking account to get a credit card?
In fact, you don’t need a checking account to have a credit card. However, it will probably make your life easier.
When you apply for a credit card, the bank will not ask for your banking information. It’s up to you to make sure your statement gets paid on time.
You can pay your credit card bill by the following methods:
ACH transfer: This is done by transferring money from one account to another.
Cash: If your credit card issuer has bank branches in person, you can pay your bill in cash.
Check: If you don’t have a checking account, you probably won’t be able to pay by check.
Money order: You can purchase a money order and mail it with your statement to your credit card issuer.
Keep in mind that while it is possible to have a credit card without a checking account, it can cause more headaches than you want.
Do you have to have a bank account to open a credit card?
The short answer is no. Credit card companies will only look at your credit score, current employment and income to determine your eligibility for a credit card.
As the holder of a credit card, it is your responsibility to pay any balance on the card, regardless of the method of payment. While it will be much more convenient to pay your balance with a personal bank account, it is possible to have a credit card without a bank account.
Having a bank account can simplify your credit card payments
An active bank account gives you an abundance of financial tools and flexibility, including direct deposit into a checking account and the ability to save money in a savings account. Your money will also be insured by the FDIC.
The best current accounts will also give you features like zero fees, a robust ATM network for withdrawing money, a respectable interest rate, and great digital banking platforms.
But when it comes to paying your credit card bill, a bank account will either allow you to send money digitally via bill payment or the credit card issuer can automatically withdraw the funds. of your account. This is a great feature because you can schedule when your payment will be withdrawn.
Plus, you’ll save money, time, and possibly stress by not manually sending your payment in the mail, which runs the risk of getting lost.
Benefits of having a credit card and checking account at the same bank
There are many banks that also offer great credit card options to consumers. A few of them include Chase Bank, Bank of America, Capital One and more. Even your local bank or credit union can offer credit card products.
When looking for the best credit card for your financial needs, don’t overlook your own banking institution for their credit options, either.
First of all, it is convenient to have a credit card from your own bank because all your information is saved. Also, if you use digital banking, your checking account and credit card information are likely integrated into the same platform.
As an established customer, you can have more leverage in negotiating the terms of your credit card, including increasing your line of credit or lowering your interest rate if you also have deposit accounts. And by having multiple products with your bank, some offer enhanced rewards.
For example, Bank of America has its Preferred Rewards program, which offers up to a 75% bonus on the amount of credit card rewards you can earn. So, if you link the Bank of America® Travel Rewards credit card with a checking account, savings account or Merrill Investing account, as well as other activities eligible to be part of the Preferred Rewards program, the number of points earned each time you swipe your card will increase.
However, don’t feel tied to your own bank when looking for credit card options. There are dozens of credit card issuers who yearn for your business with great welcome offers. In fact, earning points and miles right now has never looked so good. However, having a checking account that meets your needs is the first step to financial ease.
For example, if you are banking with Capital One but looking for a new credit card, you could get huge value looking at credit cards from other institutions like Chase. At this moment the Chase Sapphire Preferred® Card has a welcome bonus of 100,000 points after spending $ 4,000 on purchases in the first 3 months of opening the account. These bonus points are worth $ 1,250 when redeemed through the Chase Travel Portal.
5X points on Lyft trips through March 2022, 2X points on travel and meals worldwide, 1X points on all other purchases
Earn 100,000 bonus points after spending $ 4,000 on purchases in the first 3 months after opening the account
15.99% to 22.99% variable on purchases and balance transfers
Balance transfer fees
Either $ 5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fees
How to choose the right checking account for you
There are hundreds of chequing accounts available right now, and choosing the one that’s right for you can seem daunting. When shopping for the best checking account for you, consider the following:
1. Is the FDIC bank insured? If the bank is not FDIC insured, it is better to avoid it, as it is not insured in the event of bank failure.
2. What fees are associated with the account? Be sure to note any ATM fees, overdraft fees, or monthly maintenance fees.
3. Is there a large ATM network? If you find yourself withdrawing money on a regular basis, you’ll want a bank with a large network of ATMs.
4. What is the interest rate? Many checking accounts offer interest on your balances, so be sure to shop around for the highest possible interest rate.
5. Is there a sign-up bonus? Banks are constantly on the lookout for new customers and regularly offer sign-up bonuses to new checking account customers.
If a credit card application is in your future, you will ultimately benefit in the long run from having a checking account established to go along with it. If it is possible to have financial products without, that will prove to be more of a headache.
Bank of America® Travel Rewards credit card information was independently collected by Select and was not reviewed or provided by the card issuer prior to posting.
Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.