Bad Credit Checking Account
When it rains it pours, right? When an area of our finances suffers, it affects all areas. Credit card debt leads to trouble with our home, autos, and even our checking account.
Often when you are in financial trouble, your checking account suffers. Without enough money to cover expenses, overdraft fees and bounced checks 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 right to view your report free of charge. If you are turned down based on that. You can go to chexhelp.com and request a copy it.
What about this bad credit checking account that you may have read about or seen advertised? Many experts advise avoiding companies offering these types of accounts because of the high fees associated with them.
Are there other ways to still be approved?
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.
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 in exchange for a checking account at their institution.
If, within that year, you show a spotless record, your problems may be solved. Don’t forget about unions. You most likely live in a city where you are able to become a member of a credit union.
They will often give you a chance to prove yourself especially if you take a class that helps you practice better financial habits. Keep in mind that there will probably be a small fee associated with this class.
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.