Checking Accounts for Bad Credit

Filed Under Banking and Bank Fees, Credit

It’s long been assumed that having bad credit prevents you from opening a new checking account, this is only a part of the whole story. There are lots of checking accounts for bad credit. But if you’re constantly getting turned down for a new account, odds are it’s not your credit score that’s holding you back.

One of the main things that banks look at when deciding on new accounts is something called the Chexsystem list. This is essentially the “blacklist” of people that have had trouble with accounts in the past. If you’ve been denied an account, it’s more likely due to your being on this list than it is to having a poor credit score. Also, it’s normal to be on this list for five years before you’re removed.

But all is not lost. There are accounts that are designed for people in your situation – they’re known as bad credit checking accounts. These accounts are often available online, and will be guaranteed to you as long as you are a valid US citizen.  

Account Now and Vision Premiere are two of the most well known companies that offer bad credit checking. With one of their accounts, you get many of the same benefits of a normal checking account, as well as the ability to borrow money through the company. Keep in mind that the fees on checking accounts for bad credit run higher than normal bank checking accounts. Then banks charge these fees to offset the extra risk they feel they’re incurring.

If you’re dead set on getting your account through a normal bank your options are more limited. Smaller neighborhood banks that are based in your city may be more willing to offer you an account since they love to take business away from the big boys. For instance, Compass Bank offers checking accounts to people on Chexsystem, but you have to live near one of their branches to qualify.

When you’re denied a checking account it can be an embarrassing experience. When it happens, keep in mind that it’s likely not your credit score that’s holding you back. And if you are on the Chexsystem list, you still have options.

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bad credit checking, bad credit checking accounts, checking accounts for bad credit

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