Bank Checking Accounts
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Things taken for granted, such as bank checking accounts usually have a long history behind them and these types of banking transactions and services are no exception. Some people believe that a form of checking actually existed as early as 400 B.C. but the form which is more familiar today showed up in Holland around 1500 A.D. In the United States, businessmen near Boston put up their own land as collateral and began writing checks against the mortgaged property in the 1700s. So something seemingly quite modern has a long and storied past, including banks sending messengers all over New England presenting checks to other banks to be cashed. If a person looks at the description of a bank checking account in most of these institutions' literature, the length might be a paragraph long, but there are many things to ponder when opening one of these very convenient and important personal finance needs. Consider first the types of checking accounts that are available.
Most consumers in America consider the financial institution where they have their checking account as their "real" bank, not where a car loan is secured or other major loan such as a mortgage might be administered. The money from checking account fees is a large income producer for banks, so they often give away pretty nice gifts as an incentive to open an account and keep it open for a certain amount of time. So because customer retention and their needs are so varied, lending institutions have begun offering a number of different types of bank checking accounts such as a basic, free, interest-bearing, student, joint and money market accounts. It can become very difficult not to think that money (mammon in the Bible) is the most important thing a person can pursue. Jesus gave a warning and also some good news about all of this when He said, "No man can serve two masters: for either he will hate the one and love the other, or else he will hold on to the one and despise the other. Ye cannot serve God and mammon. But seek first the kingdom of God and his righteousness and all these things shall be added unto you." (Matthew 6:24, 33)
The basic account is a no frills, limited number of checks per month account and fees will be paid if more checks are written than the limit allowed. Free bank checking accounts mean no service charges for activity transacted, but it doesn't mean the absence of overdraft charges. Interest-bearing types of check plans means that there is a minimum monthly balance of a certain amount to be kept in the account at all times and if not, there is often a penalty assessed. Well look, they call it a fee, but let's call the "fee" what it is, a penalty! Joint plans are usually used by husbands and wives for equal access to bank checking accounts and online plans allow busy people, including a lot of students, who never want to step inside a bank, do all of their transactions over the Internet. But typically with an online account, if you step into the financial institution and talk to a teller, Zap! You will be assessed a penalty, er, fee.
For the bank checking accounts neophyte, there is some stark news about having the responsibility of bank checking accounts. Many people have had the horrifying experience of opening a notice from their bank and seen the words insufficient funds and perhaps two hundred dollars or more in penalties for bouncing three checks. Bounced checks are called overdrafts, and here is the sobering news: they affect a person's credit score. In fact, the report of them can remain on a person's credit history report for seven years. And these what can seem to be very minor issues between you and the bank can perhaps become a factor three years later when a person is trying to rent an apartment or get a car loan or a mortgage. See? These aren't fees like the bank loves to call them. They are PENALTIES.
In addition to having to watch for overdrafts on bank checking accounts users of the bank services need to keep in mind that eighty percent of all banks in the country use two major reporting companies, ChexSystems and Telecheck to record complaints from banks about abuse of various banking services by customers. These two companies, act as clearinghouses for these complaints, then provide these reports to other banking institutions all over the country. Just like catching the ire of the big three credit agencies, being on the bad side of these two banking agencies can actually freeze someone from getting another checking privilege from any of the 80% of lending institutions across the country. And finding the other 20% of banks not using them can be tricky. There are eight million people in the country with this very predicament, but thank goodness, there is a great alternative.
These opportunities for alternative checking accounts are provided with online banks. From direct deposit to ATM and debit card privileges and all online banking services, bad credit bank checking accounts are offered to customers who have ticked off the brick and mortar lenders. Make no mistake, there are also fees with the online bankers, and penalties in some cases, but they are not associated with the two reporting agencies. The downside to this alternative is the need for routine access to a computer with Internet capability. Often those who must use this alternative method of banking are more economically challenged and thus the computer ownership and Internet maintenance becomes an issue.
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