I would like to open a roth IRA with 1k and do some investing but my credit is crap.?

Question

I know my credit is bad but I would like to start saving for my future. I have my bills in order and only one credit that I pay every month but I tried to open a ROTH IRA with scottrade but I couldn't because of my credit. Any one know a good company that I could use to open a roth IRA. I was going to use BOA my bank but i was told to use companies like scottrade, etc.. I need help.

Answer 1

The Scottrade agreement form you signed authorized them to do a credit check. I suspect that most, and probably all, financial institutions have similar wording in their account agreements. Whatever caused Scottrade to run the credit check, is likely to have the same result at any high quality broker.

Also, 1k is not sufficient funds to do active trading. You should consider starting your IRA in a CD. After you accumulate some more funds you can roll it into a brokerage account.

Answer 2

The last thing you need is a brokerage account for your Roth IRA. Open one at Vanguard or T. Rowe Price and stick to mutual funds. Don't try to trade stocks within your IRA.

Answer 3

Try Vanguard and stick with index funds. Vanguard has good customer service - give them a call if the website isn't helpful to you.

Frankly I'm surprised that credit has anything to do with it. You HAVE $1,000, its not like you are borrowing it. But I guess financial institutions are getting more conservative these days.

Answer 4

Really? I am really surprised. I don't remember giving them authorization to do a credit check when I signed up. Did you? If not, how did they know.

Personally, I like Vanguard. Great low cost mutual funds.

Answer 5

try tdameritrade.com it is easy with them. your credit should not be a problem at all.