Checking Account Tips: Bad Credit Bank Accounts

Nobody is perfect and if your credit history reflects that reality, all is not lost when it comes to securing a checking account. Because of the complexity of the situation created by the Chex System, it may take you additional time and effort to secure and open a checking account. The Chex System is a is a deposit account verification service that  financial institutions use to warn them regarding bank account applicants who have a less than stellar history of managing their finances within transactional accounts.


If for any reason you mishandle your checking account so you end up overdrawn and owing money to the bank, you will be reported to the Chex System. The act of intentionally writing and passing out bad checks is considered fraud and a criminal activity. Once reported to the Chex System it will remain on your record for five years, thus increasing the difficulty of securing a checking account because of your bad credit history. Despite your past indiscretions, you can  work diligently to improve your behavior and wait patiently for the Chex System to drop the negative marks on you.

Those wanting to secure a checking account regardless of their past, need to be proactive in repairing the damage they have done. Was your bank account so overdrawn that you still owe money to a bank? Call them up and work out a repayment schedule with them. By addressing that situation head on you can help improve your bad credit history and work towards your future. After a period of several months, they may be willing to give you a second chance.

Even if you have a bad credit history and are struggling to open a checking account, there are several national bank chains that may be willing to work with you. E*trade Bank, Bank of America, and U.S. Bank that have high approval ratings for approving checking accounts for those who are on the Chex System.