Checking accounts for people with bad credit allow those who are unable to open bank accounts due to bad credit, have access to the banking options everyone else enjoys.
Now it’s a bit of a misnomer that bad credit will prevent you from opening a bank account. Bad credit history should not affect your ability to open a bank account, though it will certainly block you from having access to some bank account options like overdraft, personal line of credit, etc.
Rather, bad credit, in reference to a bank account refers to someone who has a bad “banking” credit score with ChexSystems. ChexSystems is a credit agency that assigns a credits score to people with banking history. ChexSystems is sort of like the Equifax of the banking world.
If you have a bad ChexSystems credit score, most major banks will reject you. You can get a bad ChexSystems score by repeatedly writing bad checks, committing account fraud, or defaulting on bank payments (mortgages, loans, overdraft etc). It’s quite common for someone with bad credit history to be more likely to default on bank payments or repeatedly write bad checks, so bad credit history can indirectly lead to a bad ChexSystems score (through the person’s own actions).
If you have a bad ChexSystems score, you will find it almost impossible to open a checking account. A checking account with bad credit can still be opened however, but you will have to seek out other options. One of the best ways to open a bank account with bad credit is to open a Second Chance Bank Account.
A second chance checking account is basically a bank account that does not implement the ChexSystems credit check. You can open a bank account without your previous banking history mattering. Believe it or not, over 50% who are reported to ChexSystems end up opening a second chance banking account.
Now, a second chance bank account gives you most of the features of a regular bank account. You get a debit account connected to a bank account and you have all the traditional benefits of a regular bank account such as a bank routing number, an account number, and a debit card. Many second bank accounts are initially checkless though but will add checking to your account provided you keep your account in good standing. However, some institutions will offer you checking right away – this depends on the bank.
Second chance banking is one of the best ways for people with poor bank credit to have access to all the regular banking features – so if your name has been added to ChexSystems or Telecheck, you will want to take a serious look at a Second Chance Bank Account.
The best place to open a second chance bank account is online. There are a variety of second chance online bank account companies that are eager to offer you a Non-ChexSystems bank account. It’s simply a matter of looking online for a suitable second chance bank account that meets your criteria. Keep in mind that you should check out different bad credit bank account offers and compare – you may find some companies offering second chance bank accounts that include extra features like checks, lower interest. It’s well worth exploring the different offers to get the best deal.
