Bank Accounts

Checking Accounts for People with Bad Credit

Opening a new checking account with bad credit is getting more and more difficult every day — if not seemingly impossible. Don’t panic. There are options out there.

First of, think about it. Do you REALLY need a checking account. There are plenty of prepaid debit cards (prepaid mastercard and prepaid visa card) programs that offer all of the same benefits that a checking account does. Unless you enjoy the overdraft fees charged by the big banks or you absolutely need to use paper checks, then you should really consider one of these prepaid card programs. They offer you direct deposit, online bill pay and in some cases, even paper checks to use for the ocassional paper check transaction.

The downside you ask?  Well, these cards charge monthly fees of about $10 a month. Some are higher. But if you were one of those people who got hit with overraft fees at least once a month, then this should seem cheap to you!!!

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If you really want a checking account though, read on.

It is simpler to open checking accounts for people with bad credit rather than going for regular bank accounts. The reason is simple and clear, that if you try to create a bank account having a poor credit history then your application might get rejected from the bank. This is particularly bad since you without a bank account you won’t be able to gain access to credit and financial services.

You can choose small banks which compete for higher risk applicants. There are online facilities offering checking accounts for people with bad credit. Basically the banks rely on the ChexSystems, Inc. Or TeleCheck for the purpose of checking account histories. Their task is to keep a record of the checking account history as well as provide reports to the clients including most banks and credit unions. These also keep records of negative financial histories like history of bounced cheques, failure to pay fees and having the account closed for cause.

These organizations that are involved in checking accounts for people with bad credit act more likely as credit bureaus. You would come across a number of banks that offer checking accounts for people with bad credit as well as second chance checking accounts. Thus, a second chance is offered to those who wish to rebuild their credit or even have a positive financial history. You can enjoy a number of benefits as well as a lot of convenience. Thus this will help in securing a better financial future.

There are certain local community banks that offer the facility of opening checking accounts for people with bad credit. In case you have a good job then you will surely get to avail this facility. You will have to deposit the paychecks into the bank account for this purpose. It is advisable to have a direct deposit while opening the checking account.

After the opening of the account, if you deposit a minimum account balance and agree to pay a monthly fee you would be issued a check card as well. In fact you would also be rewarded if you are successful in maintaining a good account history.

This is why a number of services are offered by the checking bank accounts for people with bad credit. So make use of the necessary resources and get the best out of these. So you can go for any of the alternatives. You have limited choices, but at least you have some!


Prepaid Debit Cards

Why bother with a bank account when you can get all the same services with a prepaid debit card? Many of these cards now offer many of the same services most people look for in a bank including the following:

  • ability go get paid via free direct deposit
  • ability to make payment using Visa/Mastercard
  • ability to pay bills online
  • ability to pay bills with checks via phone! ($2.95 fee applies)
  • ability to accept ACH payments – great for people involved in affiliate programs
  • ability to add money in variety of ways (without having to stand in line at the bank)

Some cards, such as Account Now, even allow you to borrow money and to build up your credit.

If you’ve ever had the unfortunate experience of paying a $35 insufficient funds fee (overdraft) for a check paid on the same date a deposit was made then do yourself a favor and switch to a prepaid card and save yourself the money and hassle of dealing with a checking account.

Here are 3 prepaid cards to consider:

  1. Account Now
  2. Vision Premier Prepaid Visa
  3. RushCard