Bad Credit Checking Account
When it rains it pours, right? When one area of our finances suffers, it often takes the rest of our well being with it. Credit card debt leads to trouble with our home, autos, and even our check book.
Often times when somebody gets in to financial trouble, their checking account suffers. Without enough money to cover expenses, overdraft fees and bounced checks begin to pile up leaving us unable to pay fees and get in to positive territory.
Most of us understand that when we dont pay our bills on time, it may be reported to one or all of the three major reporting agencies but do banks do the same thing? 80% of banks report to ChexSystems. Much like credit reporting agencies, if you have a negative report on file with ChexSystems, it is much more difficult to be approved for an account.
You have the legal right to view your ChexSystems report for free if you are turned down for a checking account based on your report. You can go to chexhelp.com and request a copy of your report.
What about this bad credit checking account that you may have seen advertised? Many experts advise staying away from companies offering these types of accounts because of the high fees associated with them. These are often referred to as Second Chance checking accounts.
Are there other ways to get approved for a checking account if you have a negative ChexSystems report?
Yes there are. First, go to the bank of your choice and make an appointment with the branch manager or new accounts manager. Inform them that youve had some credit problems in the past and ask them for options.
Tell them that you’ve had some problems in the past and ask them for options. For those who had some short term problems but have began to rebuild, often banks will be more receptive to your request if you offer to open a $1,000 Certificate of Deposit for a year.
If, within that year, you show a spotless record, your problems may be solved. Dont forget about credit unions. You most likely live in a city where you are able to become a member of a credit union.
Often they will give you a chance to prove yourself especially if you are willing to take a class that helps you practice better financial habits. Keep in mind that there will probably be a small fee associated with this.
If neither of these options work, then a prepaid card can do the trick. Many give free direct deposit and free bill pay. Eliminating those costly money orders and check cashing charges of $1.00 – $3.00.
