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ING Direct famous for providing online only banking may be useful for customers, but ING Direct only takes customers with good credit even for Checking/Savings accounts.

Why do you have to have a good credit score to open a ING Direct checking Account?

ING Direct, like so many other banks that have found ways to make money on banking customers directly despite complaints, ties every single checking account to an Overdraft Protection Plan, ergo they automatically open up a credit account for you when you establish a checking account and WILL NOT provide you with an account if you have bad credit.

What Happens if I apply for an ING Direct Checking Account and I do not have stellar credit?

You will probably get a message like this denying you the option to save money with ING Direct.  Bottom line, they can’t make money off of you through their normal interest charges and banking fees from Overdraft protection.

Thank you for applying for Electric Orange. As you may know, Electric Orange includes two important components, an electronic checking account and an Overdraft Line of Credit. Unfortunately, we’re unable to extend the Overdraft Line of Credit to you due to information received from an outside credit reporting agency. The Overdraft Line of Credit is a necessary feature of our electronic checking account and it’s not possible to have one without the other. Because you are ineligible for the Overdraft Line of Credit, you cannot open Electric Orange. You will receive an email with detailed information about this decision shortly.

If your credit status changes, please feel free to apply again. If you have a security freeze on your credit file, our email will provide instructions for requesting another account eligibility review.  – Source ING Direct during Checking Account Application Process

Online Only Banks Missing the Boat in a new Recession Based Economy

ING Direct like many other online only banks launched in the midst of the internet bubble which was rapidly followed by the build up the real estate bubble.  Convenience was an important feature of the bank at a time when many brick and mortar banks still had not figured out how to do much of anything useful online.

They attempted to eliminate traditional fees while making their money from non-traditional fees like overdraft charges, a tactic that is now drawing a great deal of overdraft complaints and finally scrutiny from Congress and Federal Reserve Regulators as they look at predatory consumer lending practices in the banking industry.

The problem here is that there are now millions of Americans that would have been a substantial part of ING Direct and other banks target market, who have upside down mortgages and credit that is far from stellar any more, even though they still have many good prospects in their future financially.

ING Direct has also drawn complaints for closing existing accounts when the spoils of overdraft credit charges and other interest related Opportunities have evaporate for customers who face credit difficulties.

Recommendation – Focus on Banks that Charge Transparent Fees

Stay away from this bank!  Yes, they may provide convenience but their business model is still built on making money from banking business practices that are considered questionable during the current recession and may even come under Congressional targets not to mention potential legal assaults from classes of borrowers and savers around the country.

Instead look for a bank that offers a transparent set of charges and fees that directly illustrate the banks own stability on the bottom line of their own Profit and Loss statement.  If they can’t operate profitably from your loyal business in a transparent fashion then odds are they are trying or succeeding to rip you off when you don’t know it!