Bad credit checking accounts can empower you to take charge of your financial future.
It can be devastating and costly when denied for a checking account. We've researched several bank with no credit check that can open a checking account immediately online.
Top 5 Bank Accounts For Bad Credit
Benefits of a bank account
Many people are unaware of the overreaching negative impacts of having a bad-or low-credit score or a negative ChexSystems report.
You end up wasting money on high fees for alternative financial services like check-cashing businesses, prepaid cards, and money orders, all of which do nothing to establish a lasting banking relationship.
Benefits of bank accounts:
Save money on fees
- Money Order Fees: Paying bills with money orders also incurs fees, making it more expensive to manage finances.
- Prepaid Card Fees: While prepaid cards offer an alternative to traditional banking, they often come with various fees for loading money, using ATMs, and even monthly maintenance.
Reduced Security Risks
- Theft or Loss: Carrying large amounts of cash increases the risk of theft or loss, leaving individuals with no recourse to recover their funds.
- Fraud: Without the protections offered by banks, such as fraud monitoring and dispute resolution, individuals are more vulnerable to scams and fraudulent activity.
Access to Financial Services
- Credit Building: Without a bank account, it's difficult to establish a credit history, which is essential for accessing loans, credit cards, and even housing.
- Earn Interest: Banks offer a safe place to deposit money and earn interest, especially if you open an online high-interest account.
- Early Direct Deposit: Many employers require direct deposit, making it difficult to receive paychecks without a bank account. Some banks even offer early direct deposit, where you can get your paycheck up to 2 days sooner.
- Online Banking and Bill Pay: The convenience and efficiency of online banking and bill pay are unavailable without a bank account.
What to Look for in a Checking Account for Bad Credit
Ready to start shopping? Not all bank accounts are created equally. Keep the following criteria in mind as you sift through all of your second chance checking account options.
Minimal Fees
As rewarding as checking accounts for bad credit are, it’s hard to completely escape fees. Some banks may have a monthly fee. If so, inquire about ways to waive service fee like maintaining a minimum balance or setting up direct deposit. As your credit improves, you'll have greater access to free checking accounts.
Low Minimum Balance
Most banks will require you to deposit a minimum amount to open your account. What you may not realize is that the minimum amount required to open your account is often expected to be in your account at all times.
If your balance dips below that number, you could be slapped with a fee. As you shop around, look for banks that have no minimum balance fees and only a minimum opening deposit requirement.
Banking Services
Just because your credit score is low, you shouldn’t be stuck without access to basic banking features. Look at each bank account’s benefits, namely the services that are free of charge. You can keep your eye out for perks like:
- Free ATM access
- Limitless checks
- Local branches
- Mobile deposits
- Highly-rated mobile banking app
While not all of the services above are necessary for a positive banking experience (like access to a local branch), others are like mobile check deposit.
