Opening Bad Credit Checking Accounts

Becoming a "bad credit" person in the eyes of banks has nothing directly to do with your FICO score in most cases. Rather, it has to do with your showing up in the Chex Systems database as a checking account risk.

There are a number of reasons you might show up in the Chex Systems database, including:

1. You closed an account before paying your bank back after they covered an overdraft you made.

2. Abuse of check, credit or debt cards.

3. You have committed some sort of bank fraud.

4. You didn't do any of the above-mentioned things, but someone thinks you have. Such errors can crop up, and until you get the chance to clear your name, you will be treated by prospective banks as if you had actually done them.

If you believe any of these apply to you, these are likely the reasons why banks consider you to be a risky depositor.

If you consider yourself a "bad credit individual," you may feel you deserve a second chance in your banking life.

Second chance checking is looked at by many "poor" or "bad credit" individuals as a lifesaver. That is because banks who offer second chance checking services ignore the Chex Systems reporting system on purpose.

Of course, second chance checking programs offered by banks still require you to go through an application process. But, these banks will never look at Chex Systems to see if you have any glitches on your personal banking historical record.

You can imagine the smile of relief (and little dance of happiness) that a person feels when being granted a new checking account after having been rejected many times before by Chex Systems banks.