10 Bank Accounts You Can Open Even if You Have Bad Credit
Are you considering bankruptcy but worried about how it will affect your future financial opportunities? You may be surprised to learn that there are a number of bank accounts you can use even if you have a bad credit score. Keep reading to learn which banks might have options for you.
What is ChexSystems?
ChexSystems is a consumer-reporting agency that keeps track of your past banking history, good and bad, for banks and other financial institutions. Unlike your credit score, which is based on your borrowing and repayment behavior, a ChexSystems report includes information about your closed bank accounts, such as unpaid negative balances, overdrafts, bounced checks, and instancesof fraud or identity theft.
Banks use ChexSystems reports to help them decide whether to approve new applications. Some banks will deny your application for a new account if you have a bad score on your ChexSystems report. Other banks will direct you to open a secured account instead, which requires a deposit.
Can You Really Open a Checking Account With No Credit Check?
While banks and credit unions typically do not check your credit score when you apply for a new checking account, many will screen your past banking activity. This is often done by running a ChexSystems report.
However, some banks and financial institutions don't check your bank history when you apply for a new checking account. So if you're looking for a new bank and have been turned down due to your bad score, keep going. There may be another option out there for you.
The Top 10 Bank Accounts for Bad Credit
These banks won’t require a credit score check. Here are ten of the best bank options for people with a bad score:
Chime - Chime checking offers features such as no service fees and no minimum balances.
Current - A Current account does not require a minimum balance. There is a free tier available, as well as a premium option that costs $4.99 per month.
Varo - A Varo checking account does not require a minimum balance or a monthly fee.
Money Lion - Money Lion accounts do not require minimum balances. However, there is a $1 monthly fee that also gives you access to other features, such as crypto and investments.
Aspiration - An Aspiration “cash management account” can be opened without meeting a minimum balance requirement. There is a free option, but you can also choose to open a Plus account for a monthly maintenance fee.
Betterment - You can open a Betterment account without maintaining a certain balance or paying any monthly fees.
Axos - An Axos checking account requires an opening deposit of at least $50. However, there are no monthly fees.
SoFi - SoFi offers an array of financial products, including checking and savings accounts. There are also no balance or maintenance fee obligations.
Chase Secure Banking - Unlike other types of Chase checking, the bank doesn’t run customer ChexSystems reports for Secure Banking applicants. There is no minimum balance requirement, but there is a monthly service fee of $4.95.
Wells Fargo Clear Access Banking - If you can’t open a traditional checking account due to your banking history, Wells Fargo offers Clear Access banking. There is a $25 required opening deposit and a $5 monthly fee that is waived for customers under the age of 25.
When you are struggling financially, you might wonder if bankruptcy is the right option for you. Bankruptcy is an effective way to get out of debt and start over, but many people worry about how it will affect their credit score.
Fortunately, there are plenty of bank accounts you can open even if you have bad credit. If you still have concerns, Schedule a free consultation with an experienced DebtStoppers bankruptcy attorney today. We’ll help you make a plan to get your finances back on track without impacting your ability to get a checking account.