Bad Credit Bank Account
A bad credit bank account is a highly welcomed solution for those who have been unable to obtain a traditional bank account due to overdrafts or other banking missteps. Those who cannot obtain regular lending institution privileges cannot have ATM accessibility or any depositing or withdrawal availability. An estimated eight million Americans fit into this category and the numbers will always grow during tougher economic times and hopefully decrease during boom eras. With an estimated seventy percent of all Americans living paycheck to paycheck, more and more candidates for a bad credit bank account may surface. The alternative for having no access to lending institution services may be the mattress and perhaps one of those fake Drano cans under the sink where money can be hidden quite surreptitiously. Can you imagine a pizza guy ringing the doorbell and the husband saying, "Honey bring the Drano so I can pay this guy?"
The person who has no access to regular banking services has a real dilemma on his hands. The first one is the reality that he is not available for direct deposit conveniences. The means that he will receive a paper check every two weeks and will have to seek out a checking cashing service for the ability to redeem a payroll check. So there is a cost for that. On top of that issue, the person will have to use money orders to pay all bills rendered through snail mail. At an average charge of seventy five cents for those things, that could amount to almost a hundred dollars a year just as a result of such a bad credit handicap. So the access to a bad credit bank account is highly desirable for a large segment of American consumers.
The reason for the fake Drano can and mattress usage along with a bad credit bank account is the existence of two bank reporting companies, Telecheck and ChexSystems. These two companies could be compared quite conveniently to the credit reporting agencies used by lenders to factor in credit worthiness. In this particular case, these two reporting agencies actually record all banking service violations and pass them on to all banks in their networks. The result is that when a consumer gets on the list of these agencies, eighty percent of all banks' services in the US become off limits for violators. But these agencies are violator friendly in that they will provide (for a small fee) lists of non customer banks that may yet provide services for them. Genuine Christians have found a faith in God's providential ways that provides a "cannot be shaken faith." Jesus described such a person this way: "He is like a man which built an house, and digged deep, and laid the foundation on a rock: and when the flood arose, the stream beat vehemently upon that house and could not shake it: for it was founded upon a rock." (Luke 6:48)
Being issued a freeze on banking service is kind of like smacking an elephant with a broom stick. A couple of whacks on his behind won't bother him, but if you keep it up, the dude will sit on your car. In the same way, getting a bank freeze won't occur if you have an overdraft or if you get more money out from an ATM than should have. It's only when a person doesn't take care of the overdraft, or only when you don't pay the money back from the ATM overage that the need for a bad credit bank account emerges. If a customer blatantly lies about information given to the bank or abuses the debit card issued in his name it then becomes a prime reason for freezing one's banking privileges and thus the need for a bad credit bank account becomes necessary.
Once faced with the need for a bad credit bank account becomes necessary, the search for an accommodating lending institution can be daunting. The fact that a bank doesn't use one of these two reporting agencies is not advertised anywhere, so a lot of phone calling might be in order, unless someone does buy that list of non-participatory banks from one of the agencies. Today, the best source of banks not using ChexSystems or Telecheck is online banking institutions. Not only do they not use these reporting agencies, they welcome those needing a banking institution but have sullied pasts regarding abuses of bank services. Online banking is actually the preferred method of banking for many people possessing good relations with their own lending institution.
So a person that does get an online bad credit bank account has all of the same services the snooty neighbor next door has when he goes to his glass and chrome bank down the street. O yeah, he does a lollipop for his daughter and a dog biscuit for the pooch when going through the drive-up. But the convenience of direct deposit is there and online bill paying is also available. That's a really cool way of being to immediately pay a bill when it arrives at the mailbox. And there is no doubt that the money was sent or that it arrived on time at the creditor. Additionally, the customer will be issued a debit card that can be used at any ATM machine, and in all stores or retail outlets that take credit card purchases. And the best thing is that all deposits and savings are protected by the FDIC up to a hundred thousand dollars.
No Credit Check Bank AccountsSecond chance or no credit check bank accounts are designed for people who have experienced difficulty with a previous checking account. Perhaps the person bounced checks or overdrew on the account. Perhaps the person wasn't able to pay the bank the bounced check or overdraft fees. Even if the bounced checks or overdrafts occurred because of a mistake or another strange reason, the individual now finds that he has been blacklisted. Many financial institutions apparently contract with one or two companies that maintain a list of the names of people who have had these kinds of financial problems. When the individual tries to open a new checking account at another financial institution, he is not allowed to do so if his name appears on the list. This can be a frustrating and embarrassing situation for someone who is trying to rebuild financial credibility. The no credit check bank accounts, according to their promotional materials, don't run a prospective account-holder's name through the list. Instead, these institutions offer banking services to those who may have been turned down by more traditional banks. This is why they are also referred to as second chance banks.
People who do not have a personal checking account often pay extravagant fees to conduct their financial affairs. For example, the person may pay a check-cashing fee to cash a paycheck. Someone who is living paycheck from paycheck can ill afford to hand over even ten percent of a paycheck to check-cashing company, but she may have little choice. However, many of the no credit check bank accounts offer and heavily promote the benefits of direct deposit. With direct deposit, a paycheck is transferred from an employer's payroll account into the individual's personal account. This way, the individual avoids losing any of her hard-earned money to a third party. Direct deposit is a convenient feature because recipients don't have to wait to get paychecks in the mail or waste time while waiting in line somewhere to get them cashed or even deposited. On payday, the funds are automatically transferred and, in most cases, immediately accessible to the employee. There are no more concerns about losing paychecks or having them stolen before they are deposited. The money is safe. Because of all the benefits of direct deposit, many employers and government agencies expect all employees to have paychecks deposited into their checking accounts. An employee who has had prior difficulties may have little choice but to investigate the benefits of no credit check bank accounts.
An individual without access to a checking account will have difficulties paying bills. Using cash to pay electric, phone, and cable bills can be time-consuming since the person will need to take the cash to each of these offices. He'll need to stand in line and get a receipt proving the bill has been paid. He may opt to purchase money orders to pay these obligations and a money order will also need to be sent to the individual's landlord or the mortgage company. The costs of all these money orders add up quickly. Here again, the no credit check bank accounts can help. After all, a person who is living paycheck to paycheck doesn't need to be spending hard earned dollars buying money orders to pay other debt obligations. The total monthly cost of the money orders may be enough to pay for one of the bills. The apostle Paul wrote: "For the scripture saith, thou shalt not muzzle the ox that treadeth out the corn. And, The labourer is worthy of his reward" (1 Timothy 5:18). Check-cashing fees and money order costs needlessly take money from those who need it most. The no credit check bank accounts offer an alternative to paying bills with cash or money orders. Many offer a bill-paying service so that debt obligations can be paid online from the bank's website. Though consumers were at first understandably wary of banking online, more and more people are finding this a convenient way both to make and track payments. The bill-paying service is simple to set up so that regular obligations are automatically paid each month and variable obligations, such as a telephone bill that changes each month, can be quickly and easily submitted online.
Most no credit check bank accounts offer other features, including legitimate bank routing and account numbers on printed checks. Additionally, most of these institutions provide applicants with a debit card from one of the major credit card companies. The debit card can be used to make withdrawals from ATMs and to make purchases, both at retail locations and at online stores. Combined with direct deposit and a box of checks, the debit card gives the individual another chance to successfully handle financial matters without bouncing checks or having overdrafts. Second chance banks sometimes offer a feature where balance updates can be received via text message on one's cellphone. When selecting a second chance bank, prospective applicants should only choose one that is FDIC insured. This means that money in an account, up to $100,000 is insured by the federal government in case of the institution's collapse. Individuals should also request a fee disclosure statement that lists all possible fees and their amounts. It may not help much to avoid check-cashing and money order costs only to be bombarded with bill-paying and ATM usage fees. Applicants should also be aware of the bank's requirements. For example, applicants may be required to have brought all past banking-related obligations, such as long overdue overdraft fees, up to date as part of the application process. Once accepted, the no credit check bank accounts institution should provide the applicant with a packet that includes the debit card and information on ordering checks and signing up for direct deposit. The individual is now on her way to rebuilding a positive credit record.