Navigating essential financial services like credit cards and checking accounts can become problematic if you possess a poor credit history. Nevertheless, as the number of individuals with bad credit and bankruptcy filings increase, numerous banks have started creating provision for these demographics. If your credit rating is low, here’s a roundup of a few banks that might be willing to overlook your prior mishaps and offer you a second opportunity:
National Banks
1. Wells-Fargo: Their ‘Opportunity Package’ encapsulates a checking account and up to three additional services. State-wise package specifics may fluctuate, but typically a $10 monthly fee is required for accounts with a balance less than a daily average minimum of $1,000 or without a qualifying monthly direct deposit.
2. WoodForest National Bank: Despite being relatively pricier, you can open a second chance checking account with this bank. For accounts with monthly direct deposits, the maintenance fee is $7.95 per month, while for those without, the charge is $9.95. An initial setup cost of $9 is also applicable.
3. First American Bank: Providing a ‘Fresh Start’ checking account at a monthly fee of $9.95, it necessitates a $50 deposit upon opening. However, post this, no minimum account balance is demanded.
4. Central Bank: They propose a ‘Clean Start’ checking account, the details of which are not easily accessible online. The service incurs a monthly fee of $8 and a minimum balance requirement. Exact specifications need to be determined directly from the bank.
5. Liberty Savings Bank: This bank grants a ‘Clean Slate’ checking account, devoid of a minimum balance prerequisite. After maintaining a non-sufficient funds (NSF) free account for 12 months, you can transition from a ‘Clean Slate’ to a regular checking account. Unfortunately, the monthly fee for this account is not openly advertised on their website.
Local Banks
Several smaller local banks also allow the opening of second-chance checking accounts. The website Second Chance Checking Accounts curates a state-wise list of banks offering this service. For non-US residents, related local services are also available. Positive home loans, for instance, is an excellent option for Australians.
An Essential Evocative Precaution:
If your checking account has a track record of non-sufficient funds (NSF), it likely caught the attention of ChexSystem. Prior to opening a new account, ensure to clear all such dues to maintain a clean record. Even though your name will still appear on ChexSystem, a clean status reflecting all debts paid could ease the account opening process.
A large number of banks are wary to permit individuals with prior case of mismanagement to hold accounts. However, there are select national and several local banks willing to give them another chance. Following the opening of your new account, ensure to maintain it in good standing to eventually qualify for checking accounts with lesser monthly fees.
