Do you have a bad credit rating? Are you listed in Chexsystems? Have you had a checking account closed?
Are you paying for expensive money orders every time you have to pay a bill? Do you have to pay check cashing fees just to get your paycheck cashed?
These fee’s really start to add up when you are paying them all the time! It estimated that the average person spends $342.17 every year in fees, just to cash their check and buy money orders!
How great would an extra $340 in your hand be? These fees are causing you to have less money for; groceries, gas, food, entertainment, and most importantly your family.
However you have found yourself in search of a bad credit checking account – it’s OK! Your not alone their are millions of Americans in chexsystems. This means you have been blacklisted by the banks.
This chexsystems listing will last for 5 years. It is a way for banks to keep and share information with each other about ‘problem customers’. You will be placed on this list if you have had your checking account closed ‘for reason’ in other words if you had an account closed often with unpaid overdraft fees or have been a victim of identity theft.
The good news is you can fix a damaged credit history. In fact Congress passed the Fair Credit Reporting Act in 1970. This law entitles you to file a credit dispute on any item on your credit report that you feel is inaccurate.
Checking Accounts for Bad Credit – Your Options
Friend or Family – The first and most volatile option is to ask a friend or family member to ‘co-sign’ ‘attach’ their account to yours. Often even if your in chexsystems you can go to major banks wherever your cosigner already banks is the best option and the bank will be willing to open an account in your name. However your cosigner will be responsible for any overdraft or fees charged.
As we mentioned this is the most dangerous because clearly life throws a lot of curve balls. And it seems like once one bad thing happens, another happens and it snowballs which is often how bad credit starts with just one missed bill!
We would strongly suggest you avoid this option because of the potential for damage to a relationship with a loved one. The relationships with your friends and family are much more important than money and unfortunately money often causes damage to these relationships.
If you do choose this option please ensure that you use your checking account responsibly and don’t cause any undue financial hardship for your cosigner.
Your Local Bank – It may be worth be checking with a small local bank. We have heard that on occasion a local bank will still issue you a checking account with bad credit. We believe this is on the decline as many banks have merged with major banks in the recent years as a result of the financial and mortgage crisis.
Your best bet is if you have a contact person in a local bank. Use caution though because often a bank will try and sell you a secured credit card instead of a checking account. A secured card can be a helpful tool to help improve your credit score but there are some much more effective methods to fix a damaged credit history.
Prepaid Card – This is an online debit card and will work just like a checking account. You will get free direct deposit and can deposit: paychecks, benefit checks, and even your tax return. This will save you money by eliminating the need to pay check cashing fees! You also will have access to your money as much as 48 hours quicker!
Additionally you will get access to online bill pay with your card. This is a method to have payments sent and you will never have to go and buy a money order ever again. All you do is log into your account online, go to the bill pay section, fill in the business or person you want the payment sent to, the amount of the payment, and the date you want it sent.
This is a real Visa or MasterCard. It will be accepted online, over the phone, buying gas at the pump, and even overseas! You can rent a car, purchase airfare, book a hotel room with it. And your money is protected in case your card is lost or stolen by a Zero Liability Policy. There is no credit check and no chexsystems check your guaranteed approval!