"If you're among the 51 million Americans the FDIC claims are either unbanked or underbanked, be aware that you may experience serious financial and employment difficulties in the long run," - Scott Smith, President of CreditRepair.com
Seattle, WA (PRWEB) May 01, 2014
CreditRepair.com President Scott Smith cautioned unbanked consumers this week to consider how their financial choices may negatively impact their ability to acquire cars, homes, insurance, credit cards, and even certain jobs.
"If you're among the 51 million Americans the FDIC claims are either unbanked or underbanked, be aware that you may experience serious financial and employment difficulties in the long run," Smith said.
Consumer advocates use terms like "unbanked" and "underbanked" in reference to those who manage their finances without using regular checking accounts, savings accounts, or revolving credit cards. Instead, these consumers either cash their paychecks in person or use direct deposit with new types of hybrid products like American Express Bluebird, GreenDot, or GoBank.
"None of these financial products report to the credit bureaus, which can cause millions of Americans to either have no credit at all, or end up with thin credit files and low credit scores," Smith added. This unfairly penalizes the unbanked because applications for car loans, mortgages, many insurance products, and certain employment opportunities require reviews of credit reports and credit scores.
Smith advises these consumers to think about building their credit profiles.
"If you are someone who manages his or her finances off the usual banking grid, think about how this may impact you for many years into the future," Smith said. "For example, consider becoming an authorized user on a family member's credit card in order to establish the beginning of a credit history, or think about applying for a secured credit card that reports to the credit bureaus.”
"Your ability to effectively take care of your family later may depend upon it."
Since 1997, CreditRepair.com has assisted thousands of consumers in finding effective, credible solutions to reclaim their credit scores and reports. CreditRepair.com has aligned with the major credit bureaus to ensure that what creditors report is substantiated, fair and accurate. For details about CreditRepair.com's simple 3-step process, visit: http://www.creditrepair.com