Bad Credit Debit Card Accounts For People Who Can't Find A Non Chexsystems Bank

One of the things that happen to many people who have experienced financial problems is that

, at some point, they end up writing checks on insufficient funds or otherwise overdraft their accounts. If those incidents are left unpaid, then the bank reports them to a company called ChexSystems, whose line of business is to provide financial institutions with information about people who are perceived to have abused the system. Even if you did pay off your account's balance every time you get an overdraft, the bank can decide that you're a risk and close your account before (according to their logic) you get that overdraft that you may not pay off.

Needless to say, the Chexsystems list is not a good one to be on. Simply put, being on the list makes it pretty hard to open a new checking account, because the overwhelming majority of banks in the country base their decision on what your banking history is. If it's negative, most of them won't touch you with a ten-foot pole. But fortunately, that's not the end of the day. If you're having trouble finding a bank to open a checking account, you may want to try another option: a prepaid debit card account.

The biggest difference between a prepaid debit card account and a regular checking account is that in the case of the debit card account, you don't have a set of paper checks that's sent to you. But you still get the most of the financial services you would with a regular account, except that it's a more costly option. Prepaid debit card accounts are also easier to open because of their very nature: they're prepaid. Since you have to provide the money first-hand, there's very little risk for the issuer. This allows them to open such accounts for you even though you may have a negative Chexsystems record, or bad credit.

This is not only good for the debit card issuer. It can also turn out to be beneficial for you too. For one, since you can't overdraft your account, you won't have to pay expensive overdraft fees. You can also use this as a opportunity to establish a positive bank account management record, which you can later use to apply for a regular checking account.

The debit card you will get should be Visa- or Mastercard-branded, so that you can use it everywhere to pay for purchases, as well as to withdraw money from ATMs everywhere. It's linked to your account, so any withdrawals and/or deposits are automatically reflected on your account. Your monthly statement allows you to track exactly how you've been spending your money. You can also have your paycheck directly deposited into your debit card account so that you don't have to cash your check at the local check Cashing store and pay exorbitant fees.

Debit card accounts can also have savings accounts linked to them. This way you can earn interest on your money. Some debit cards even allow you to earn reward points, just like a rewards credit card, although they're a bit harder to find. In general, in you look around and carefully compare offers, you can find a debit card account that will give you all of the advantages of a normal checking account.

If you can't find a local bank that will let you open a second chance checking account, consider a prepaid debit card account. They can be a good alternative to a regular bank account.

by: Preston Conner

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