The "Second Chance" checking account from Compass Bank offers a bank account option for consumers with less than perfect credit. While it's true for the most part that credit scores won't affect your checking account, customers with blemishes on their ChexSystems record, or a bankruptcy on file, may face challenges finding a bank account. A handfull of banks now offer checking accounts geared to help consumers who have had unexpected financial difficulties in the past get back on track.
Help Recovering From Bad Credit
If your credit has been less than perfect, it may seem like it's impossible to catch a break. Not all banks offer bank accounts for bad credit, so this is a decent choice for consumers trying to reestablish a good bank account record. Going without a checking account, besides being inconvenient, can be expensive -- many check cashing companies now charge exorbitant fees, not to mention the hassle of paying bills with cash.
Monthly Fees, But a Low Minimum Balance
Geared towards consumers with less than perfect credit, the Compass Bank account charges a monthly fee, but has only a $25 minimum balance requirement. Since most people without a checking account probably use a check cashing service, the monthly service fee from Compass should theoretically pay for itself. The account comes with most standard features, including online banking, a check card, and unlimited check writing.
Offers from Compass Bank may vary, so check the fine print when it comes to fees to make sure you're still getting a good deal. The bank should provide you with a list of charges and fees upon opening the account. Bank accounts for bad credit may be scarce, but that doesn't mean you should pay incredibly inflated fees.
Build Good Credit With Responsible Banking
A bank account is an important money management tool, and the absence of one can cost a person a hefty amount of fees in check cashing charges, issuing money orders for bills, and postage. Provided the bank account is used responsibly and expenses are tracked, it can be a great tool for rebuilding credit. A second chance account can give you the chance to establish constructive financial habits, and many banks offer the option to switch to a normal account after certain conditions are met.
(Note: Compass Bank does not guarantee approval for any of their accounts.)