Checking Accounts For Bad Credit
Checking accounts for bad credit situations are more widely available than most people think. Whether they are personal or business checking accounts (bad credit) you are concerned about, there are banks that offer second chance banking in bad credit or other financially challenging situations.
Checking Accounts For Bad Credit Situations
If you find yourself or your business in a challenging financial position and have been denied checking accounts, don't be discouraged. There are banks willing to offer checking accounts for bad credit situations around the country and online.
Whether it is a savings account or checking account you need, and whether your problems are a low credit score, bankruptcy or a negative on your ChexSystems, there is usually a way around it. You can find these checking accounts online or at local bank or credit union branches.
Second Chance Checking Accounts - Bankruptcy, Poor Credit Score Obstacles
When banks open checking accounts for you or your business, they usually look through your record at a consumer reporting agency like the Chex System or Telebank. These are agencies similar to credit score reporting agencies lke Experian or TransUnion, only they focus on your checking account history, rather than your credit history.
Some banks also will look into your credit score, although they are in the minority. A bank's policy on Chex System records in the main thing you want to be most concerned with, as compared to whether you are in bankruptcy or what your credit score is.
To open a checking account for bad credit, you need to find a bank that does not base its decision on opening or not opening the account solely on your Chex Systems record. Some banks or financial institions may not use that as the only criteria.
Look beyond traditonal banks to other financial instutions, brokerage houses or credit unions. For a lot of these financial institutions and credit unions, bad credit may not deter them as long as your ChexSystems record was not due to fraud (but unpaid fees for example).
A number of banks are also willing to offer second chance checking accounts to applicants who may not qualify for their regular checking accounts. In most non-fraud cases of negative ChexSystems record, many financial institutions and banks are willing to work with applicants around that.
Note that the banks or credit unions may consider your account to be of higher risk and the checking account terms may be tougher than regular checking accounts. For example, they may require a higher opening deposit, minimum deposit and/or monthly account fees.
That is why when you are being offered a checking account for bad credit, take a close look at the terms and conditions and decide if they are acceptable to you. If you take some time to research through various websites, you will more than likely find more than one checking account for yourself. So shop around for the best terms.
Checking Accounts For Bad Credit Offers - Points To Consider
These are some of the top things to consider when reviewing second chance checking account offers or checking accounts for bad credit circumstances:
Monthly Fees - Are there any monthly account maintanence fees, and if so, how much? You should be able to find a good checking account from $0 - $10 a month. In general, be a savvy shopper and get an idea about all the fees that are associated with the account.
Account application fees - Are there any account application fees? There are many options for no application fees, so if this fee is being cited by an instituition, consider their terms carefully.
Debit card - Do you get a Visa or Mastercard debit card? Is it free? A card like this makes paying for things a lot more convenient. It's more convenient and safer than keeping cash in your wallet.
Check writing - Can you write checks for free, or are there charges associated with each check written? Do you get a checkbook for free?
Checking accounts' online banking - Online banking makes it easy to manage your finances and keep tabs on your account balance. Online bill pay is also great for paying bills and scheduling payments. You don't want to miss payments and end up with late fees and so forth.
As an alternative to a conventional checking account, consider a prepaid Visa card account with no ChexSystems requirements. It works just like a checking account, allowing for direct deposit of paychecks and online billpay (one-time or recurring payments). You can deposit cash into the account from 135,000 retail locations nationwide. In addition, the card can be used anywhere Visa is accepted. Click to learn more: The Perfect Alternative to a Checking Account!