How To Open A Bad Credit Bank Account For Blacklisted People
It is not easy to directly walk into any bank and open a new checking account with bad credit history. This can be due to late payments, bankruptcies in the past as tracked by your credit report at Experian, Transunion etc or your banking activity history as tracked by ChexSystem. The latter is used by banks to blacklist customers who owe the banks fees and did not pay back in time.
Most US banks will use this CheckSystem to screen new account registrations in order to avoid people with high risk of fraud. And when you do nothing about your bank account with a negative balance, your bank may report you and add your name to the database. When you are blacklisted, it will be very difficult to open a new bank account for the next 5 to 7 years.
So when you are declined a new checking account, you need to find out whether it is because you have a poor FICO credit score or you are blacklisted by Chexsystem. Firstly, get your free credit report from any of the central bureaus and generate your FICO score. As long as it is not very bad (less than 500 points), it should not cause you stop you from having a checking account. However, as long as it is lower than 700 FICO points, you may as well try to fix any credit report errors and improve your score. This will help you get more personal credit such as a cheaper loan or a bigger $10000 credit card limit.
Next, you need to find out your banking credit. The best way to get a checking account with bad banking credit is entirely different from the former. This refers to your banking history and not how you handled your credit card debts in the past. If you have cash in bad checks, issued bounced checks or other suspected forms of banking fraud, you may have bad banking credit. In case you know you have a bank account terminated in the past, chances are you have poor banking credit and your name is blacklisted in ChexSystem’s records.
So where can you get bad banking credit checking accounts for people blacklisted by banks? Try buying a new prepaid debit card since no credit check is needed. These are preloaded credit cards linked to a bank account, and you can get a new prepaid charge card with $100 deposit. As long as you have funds in the account, you can use your prepaid VISA or MasterCard against the account balance just like a normal bank card. Note that adding money deposits and making withdrawals may cost a fee.
When you can add direct deposit from your employer’s human resource office, it is possible to get a checking account with poor credit at big banks. This is a limited bank account similar to a full checking account, but the number of transactions will be limited and you may need to pay more fees.
Legitimate Internet Second Chance Checking Account With No ChexSystems
The easy way to get a bad credit bank account is to approach the legitimate internet banks. They are usually not using ChexSystem or FICO score to screen new customers, so it is easy to get in. However, the opening deposit may be higher and the fee structures vary so you should compare several internet banks before signing up. For safety, check their track records at BBB to make sure it i a legit internet bank and they are FDIC insured.
Many people are turned down by US banks because of ChexSystem, so they choose a second chance checking account instead. Even big banks such as Chase offer such guaranteed checking accounts with no ChexSystem screening. You can find many US banks giving online banking accounts for people with bad ChexSystem credit. If you do not make any more financial mistakes or exposes the account to fraud suspicion, it can be converted to an ordinary checking account after 1 year.
Getting a new bank account when you are blacklisted with poor credit is not a problem. Try the above methods one by one until you succeed. There is no need to pay a lot of money to try and remove your name from ChexSystem. We recommend you try online second chance banking accounts for bad credit or blacklisted people.