When it rains it pours, right? When an area of our finances suffers, it affects all areas. Credit card debt leads to trouble with our home, autos, and even our checking account.

Often when somebody finds themselves in financial trouble, they end up without enough money to cover expenses. Overdraft fees and bounced checks begin to pile up leaving us unable to pay them and get in to positive financial territory.

Most of us understand that when we are late paying our bills, it may be reported to one or all of the three major reporting agencies but do banks do the same thing? 80% of banks report to ChexSystems. Similar to the credit reporting agencies, if you have a negative report on file with ChexSystems, it is much more difficult to be approved for a checking account.

You have the right to view your report free of charge. If you are turned down based on that. You can go to chexhelp.com and request a copy it.

What about this bad credit checking account that you may have seen advertised? Many experts advise staying away from companies offering these types of accounts because of the high fees associated with them. These are often referred to as Second Chance checking accounts.

Are there other ways to gain approval for a checking account if you have a negative ChexSystems report?

Yes there are. First, go to the bank you are interested in and make an appointment with the branch manager or new accounts manager. Tell them that youve had some credit problems in the past and ask them for options.

For those who had some short term problems but have started the rebuilding process, often banks will be more receptive to your request if you offer to open a $1,000 Certificate of Deposit for a year in exchange for a checking account.

If, within that year, you have no problems, your problems may be solved. Dont forget about credit unions. You probably live in a city where you are able to become a member of a credit union.

Often they will give you a chance to prove yourself especially if you are willing to take a class that teaches you better financial habits. Keep in mind that there will probably be a small fee associated with this class.

If these options dont work and you need to look for a bad credit checking account, make sure you weigh all of your options. There are many different companies offering accounts with many a wide range of fees.

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