Correcting Your Credit Report
Improving Your Credit Rating
Re-Establishing Credit to Buy a Home
Can't Get a Checking Account?
Does anyone know how to get a checking account if your credit is not very good? I have not been able to open a checking account due to credit problems in the past.
I would like to offer some advice to the person who was not able to open a checking account due to credit problems. I have had some experience with this. Here is what I have learned:
Based on my personal experience, the best thing to do is get your ChexSystems report, then challenge anything you can and contact banks that have reported you. Compromises can be made. Banks that have reported you can rescind their negative reports or add information about how you have paid your debt, etc. But the most effective method is time. I dealt with cash and money orders until October of this year, when I was able to get a checking account and debit card from US Bank. And I think it taught me to manage my money better and now I know that I can be responsible with my checking account and not have problems like I did when I was younger.
Go to your local bank of preference first. Set up an appointment to speak with a new account manager. Explain to him or her that you have awful credit. Then tell them you are prepared to purchase a one-year CD at their bank. The amount may vary. We put down $1,000 for this when we did it three or four years ago. Explain to the new account manager that this CD is in exchange for a checking account opened in your name(s) at the bank. At the end of one year, we had to go in to another meeting with the same account manager. He pulled our bank records and saw that we had not bounced a single check. He let us cash out our CD and we got to keep our checking account. It worked for us.
We recently had problems with our checking accounts due to poor credit as well. In our area, we have local credit unions. You can usually obtain a checking account if you take some special classes. They usually have the information onsite. Once you graduate from these classes, you can now open an account with them. The classes are not free. For us, it cost $35 per person or $60 for a couple. The classes are the basis of how to maintain a checking account, etc.
You might try a credit union. Some credit unions require you to be employed by a certain employer or industry, but some are not as restrictive. I belong to a credit union with the requirement that you have to live in or be employed in the certain counties that they service. I got my account after being rejected by a couple of banks.
A checking account is the primary tool used to maintain an individual's personal finances. Money Orders or Cashier's Checks can be an expensive alternative to a checking account. However, that might be the only option if the individual has a blemished credit past.
If an individual has a poor credit history, the first thing they need to do is obtain a credit report and review the items listed. What are the problems? Are the problems accurate? And what are the steps to clear up those problems which is usually by paying dated debt?
There is a program offer by Consumer Credit Counseling Services, entitled "Get Checking". "Get Checking" is a workshop created to help individuals who have never had a checking account, have a closed checking account, or are opening a new checking account at a participating financial institution. The workshop focuses on successful money management, budgeting, and the mechanics of checking accounts. Contact your nearest CCCS agency and asked about the "Get Checking" program. It will put you one step closer to a checking account.
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