Is it okay to have a bank account just for paying bills?Like, it's only for security reasons. Because I don't like using my card that linked to ANY of my accounts at the bank I use. Is it okay to have another account at a different insititution just for paying student loan, electricity, rent and phone. So that all these "hands" will be somewhere not... |
Absolutely it's OK and actually a very smart way to keep your primary accounts secure.
I have a second account at a credit union just for bill pay, paypal income, and internet transactions....it's not used for any other reason and is in no way linked to our household accounts.
Do make sure that whatever account you open doesn't come with hidden fees. Some banks require a minimum balance, or direct pay, or other quirky little conditions. Most credit unions don't seem to charge those kind of fees why that might be a good option for your second account.
Unless you have a lot of money in the same bank in an account that is linked to this one, you are bound to be asked to pay $10 a month in fees.
yes it's not only fine, but it's GOOD! Because you are building up a credit history and that raises your credit score.
If that credit card has a history of bills paid on time, and sometime in the future you need to take out a cash advance, you will qualify for more loans.
I think its smart to have 2 bank accounts as long as you keep enough in there that you don't get hit with any fees. 2 accounts is good to stay diversified, if one bank went under you are FDIC insured but it could be a month or more to get your money back .....
I think that's a really smart idea, that way they cant have access to all your funds.
