Checking Account for Bad Credit: What You Need to Know
Many people need nowadays need bank accounts to get on with their daily lives. Having a bank account allows us to manage, receive our finances easily all in one place.
However, not everyone knows enough about bank accounts, especially if they have a bad credit score. You might be afraid to open a bank account, but thankfully there’s no need to worry whether you have good credit or not.
To help you learn more about bank accounts and how you can get one with a poor credit score, here are some facts that you ought to know.
What Kind of Bank Accounts Are There?
There are several kinds of bank accounts, with the most common form being a savings account and a checking account.
Each bank will offer different forms of these accounts that could be beneficial to you, some banks could even offer you a savings account that works as a checking account.
Both a savings account and a checking account will hold and receive money.
The main purpose of a savings account is to save money. Money can easily be deposited into these types of accounts and some banks would offer things such as ATM cards so you can withdraw the cash whenever you see an ATM.
While you may use your saving accounts in certain instances if the bank allows it to buy things online or to pay for things (if it serves as a debit card), you should try to use a savings account for its intended purpose.
Typically, most people such as teenagers or the elderly would open up savings accounts. But it is a good idea for anyone at any age to open up and start saving as soon as possible.
The second common form of bank account is a checking account, which is a good option if you are looking for something that will help you pay for things easily.
Checking accounts aren’t meant to have money inside them for long periods of time, so if you plan to use a bank account to deposit money in and use it for your everyday needs, a checking account might be the way to go.
It’s convenient if you want to pay for things like gas, groceries, online bill payments, etc.
What if I Have a Bad Credit Score?
If you have a less than stellar banking history, you may find it more difficult to open a bank account. Thankfully, there are things such as a checking account for bad credit.
You just have to ask your bank if they offer such things. Typically you would get a lot of the same basics that a normal checking account would have.
However, you have to keep in mind that there may be limitations and rules that you might have to follow compared to people who own regular checking accounts.
If your banking history is very poor, you may have a really hard time, especially if you have filed for bankruptcy in the past.
If you also have too many unpaid fees from past bank accounts, you might get denied for a bank account right away when you apply. This is why many people go for second chance banking to get a bank account fast.
Second chance bank accounts are a great way for people to start rebuilding their history with banks. It isn’t easy building a good banking history without it, otherwise it would be a long and difficult journey.
Second chance bank accounts also allow you to have access to bank accounts right away without having to wait too long.
These bank accounts are usually very beneficial as well, not only in rebuilding your banking history, but in what they have to offer.
One of the most popular forms of second chance bank accounts is second chance checking accounts. While you might find it difficult at first, especially if you had a checking account before, because of the limitations that a second chance checking account has, it can actually be a good thing.
There are certain limitations on the checking account that can keep you from spending too much, which is good for both your own savings and budgeting, along with keeping a good banking history.
It just takes awhile to get used to and eventually you’ll be off to getting on the right track again.
Who Can Use Second Chance Bank Accounts?
Pretty much anyone who gets denied of traditional bank accounts can apply for one. People who have committed financial fraud in the past can rebuild their trust with a bank by using second chance banking.
If you have had a lot of overdrafts, you will also be able to use a bank account, thanks to second chance banking.
Many people suffer the effects of having too many unpaid fees or over withdrawals from their past bank accounts, but you can redeem yourself with a second chance bank account.
This is also helpful for people who have gotten their accounts closed due to any of the things above or for other reasons.
Why Should I Get from a Second Chance Bank Account?
Not all bank accounts are made the same, even for second chance bank accounts. While you may be limited to what you can get with a second chance account, you can still try to find the best one possible for you.
You just have to know what sort of things you want from the account and look for banks that will offer that in their second chance bank accounts. Here are some things that you should look out for.
You should ask the bank what their overdraft restrictions are for their second chance bank accounts. While many of them give you a pretty firm monthly, weekly, or even daily limit, it could be a good thing.
You don’t want to make a mistake by getting more or spending more than what you actually have, which leaves you with lots of penalty fees if you do so.
Fees are also normal to expect from second chance banking for maintenance. However, it could be waived if you meet a certain requirement, such as a minimum maintaining balance in your account or make a regular deposit.
If you are used to writing out checks to people, ask the bank you are interested in if they will allow you to write checks with a second chance bank account.
They may not offer or have little check privileges to offer you or ask for you to pay a fee. Another crucial to think about is if they will offer you online banking services, since most banks have moved into the virtual world now.
Online banking is a great way for you to keep an eye on your finances and perhaps even buy things online if your bank allows it.
What Are Some Banks that Offer Second Chance Banking?
There are many banks all over America that will offer people a second chance bank account. If you are interested in a checking account, United Bank Gateway Checking might benefit you.
Their second chance bank account is great for most people, because you only need to pay $10 every month to keep the account open and valid.
However, if you have maintained a good banking history with them for at least half a year, you can actually upgrade your account into a regular United Bank account.
Online banking is also offered by United Bank with their app that you can download on your phone to pay for bills or send mobile checks.
Another good bank to consider if Wells Fargo Opportunity Checking. They also only require you to pay $10 each month to keep your account active, however they allow that fee to be waived, provided that you meet the requirements.
You need to have made about 10 purchases using the account, get at least $500 from a direct deposit, and keep at least $1,500 in your bank account everyday.
It’s also great because you get all the access to online banking, many ATMs all over the country, etc., but there is a catch.
You can’t just go and get this account right away. You have to apply for a standard account and get denied to be offered this form of checking account.
Even if you have little to no credit score or you have a poor banking history due to some past mistakes, you can still get a bank account.
Getting a savings or checking account with second chance banking is a great way for anyone to get the account they need and improve their banking history.
By using this type of account, you get access to a bank account right away and in the future, you get to upgrade or get new traditional accounts.
Learn more about second chance banking by visiting dedebt.com