Checking Accounts for Bad Credit

If not being able to get loans and credit cards wasn't enough, a bad credit rating can even be prohibitive when it comes to acquiring a checking account. Unfortunately, banks see people with a poor credit score to not be financially strong enough to even pay up on bank charges. Several others have come and gone and in the process defaulted on bank overdrafts on accounts. The banks have now had just enough of it and of late have been referring to the credit history of their applicants before granting them even a checking account. But checking accounts are pretty much a necessity. So if you have a bad credit score, does that mean you won't even get a checking account?

Checking Accounts & Credit Score

Good or bad credit, a checking account is a necessity these days as you simply cannot keep all the cash you have on you all the time. So while scouting for checking accounts for bad credit there are a couple of things you might want to keep in mind.

Bank Charges
Few banks will be willing to allot to you checking accounts for bad credit with checks, but the ones that do will surely try a to make a bit more money off you. Simply speaking, they look at a person with a bad credit score and they see a walking-talking high risk opportunity. And they know that they can either biff you off and tell you to come back when you have an acceptable credit score, or use this opportunity to charge you an immense bank charge and other related charges for use of your account. After all, since no one else is ready to offer to you a checking account, they have a monopoly position and can easily make a lot of money off you. So that's the first thing you need to keep in mind.

Online Checking Accounts
This is another option worth exploring. Internet banking accounts generally ask for a lower credit score anyway and can often brag about lower bank charges and transaction costs as compared to physical accounts. The transaction charges are lower for these accounts anyway. They will of course ask you to maintain a basic balance in your account all the time. This means that in all probability you will have to maintain a minimum balance in that account all the time and you may or may not be able to avail the overdraft facility. Of course it is always better to open an online checking account for bad credit with a more reputed online banking company. They may ask for a higher charge but you can rest assured knowing that your money is safe.

Investment Account
Of course if you're at a pretty low ebb with your credit score and the physical and online checking accounts are simply not coming your way, investment accounts may just be the last option you get to park your funds. The idea is a simple one. Investment accounts will require you to maintain a large minimum balance, but at least you don't need to keep all your extra money lying around the house and you can give it to them for safekeeping instead.

Checking accounts really make managing money a lot simpler and hence it is really important to have one. And now that you know the options at your disposal, you can go ahead and apply for one right away.