Handling essential financial services like credit cards and checking accounts can be a real headache if you have bad credit. But as more people face bad credit or bankruptcy, many banks are making efforts to help out. If your credit score isn’t great, here’s a look at some banks that might give you a second chance:
**National Banks:**
1. **Wells Fargo:** They offer an ‘Opportunity Package’ that includes a checking account and up to three other services. The details can vary by state, but generally, there’s a $10 monthly fee if your balance dips below a daily average of $1,000 or if you don’t have a qualifying direct deposit each month.
2. **Woodforest National Bank:** This bank has second chance checking accounts, though they can be a bit expensive. If you set up direct deposits, the monthly fee is $7.95. Without direct deposits, it goes up to $9.95. There’s also a one-time setup fee of $9.
3. **First American Bank:** They offer a ‘Fresh Start’ checking account at $9.95 per month. You’ll need a $50 deposit to open the account, but after that, there’s no minimum balance requirement.
4. **Central Bank:** Their ‘Clean Start’ checking account has an $8 monthly fee and a minimum balance requirement, but specifics aren’t listed online. You’d need to contact the bank directly for more details.
5. **Liberty Savings Bank:** Their ‘Clean Slate’ checking account doesn’t require a minimum balance. If you keep the account free of non-sufficient funds (NSF) for 12 months, you might be able to switch to a regular checking account. The monthly fee isn’t clearly listed online.
**Local Banks:**
There are also smaller local banks that offer second-chance checking accounts. A website called Second Chance Checking Accounts provides a state-by-state list of these banks. For those outside the US, similar local services are available, like Positive Home Loans in Australia.
**Important Precaution:**
If you’ve had trouble with non-sufficient funds (NSF) in the past, it’s likely that you’re listed with ChexSystems. Before opening a new account, make sure to settle any outstanding dues to keep a clean record. Even if your name still appears on ChexSystems, showing all debts paid can help you open a new account more easily.
Many banks are cautious about allowing people with a history of account issues, but there are national and local banks willing to give you another try. After you open your new account, keep it in good standing so you can eventually qualify for accounts with lower monthly fees.