It’s not fun being turned down for a bank account simply because you have messed up your credit. And I’m sure most would agree, it’s not fair either. What does bad credit have to do with getting a checking account?
I have no idea why banks turn down people simply because of a bad credit score. Your Credit Score reflects how you can pay your bills. Your Checking Account simply has to do with you depositing money into your own bank account to write checks.
Banks probably assume the worst with a bad credit score. Thinking if the person cannot pay their bills, they may end up over drafting their account as well which in my opinion is bogus.
But in the world that we live in, people are being turned down daily by the thousands. They cannot open checking accounts because of their bad credit scores.
Think about this. Would you rather have bad credit and be turned down for a bank account? Or be in Chexsystems and be turned down for a bank account? My answer would be, I’d rather be in Chexsystems. Simply because, people with bad credit will have those marks on their Credit Reports for seven years. People who are in Chexsystems well, only 5 years. Still, 5 years or 7 years that is a lot of years.
Also, people who are in Chexsystems the banks tend to budge a little more better toward you after you have been listed for about 3 or 4 years.
You see, with today’s economy banks are being more protective than ever and their requirements are stronger than ever. Meaning, if you have bad credit you most likely will be denied a checking account.
If they really want your business and they pull a Chexsystems report and you have been listed for 3 or 4 years you may have a really good chance of that bank opening the account for you. That is, if no other bank listed you after your first Chexsystems Mark.
People who have bad credit have to prove to their Creditors that they can be credit worthy again, before they will even get another credit card. So they have to start off with low limit cards and begin again until they prove themselves. Once proven, their limits are raised by the Creditors.
A Second Chance Checking Account with bad credit is exactly the same way. You have to prove to the banks that you can do this. That you are not going to overdraft your account. There are banks that give you a second chance. These banks will report your Account in good standing (that is if you keep it in good standing) and this will give you the boost and reference to finally be able to open a new checking account in your area.
With over 90% of banks running credit checks now-a-days more people than ever are being turned down because of bad credit. Again, is this Fair? In my opinion no. However, it is reality.
So, get an account that allows for Direct Deposit and offers you a Visa or MasterCard Debit Card. Even if no check writing is available. Use this account for at least a year, and get the Credit Reference on your report. Then go apply for a checking account in your area. Show them that you opened this bank account over a year ago, and have never overdrafted your account. Show them you can be responsible. This is the best solid proof one can get to show the banks that they too can open an account for you with checks, and trust you just like the previous bank did.