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Guaranteed Checking Account

Guaranteed checking account products can give you another chance to establish good credit worthiness among banks and other lending institutions. If you have had problems in the past with a checking account interest rates and it resulted in a derogatory credit mark against you, you may have experienced an account being closed at the discretion of your bank. This creates a problem where you are almost guaranteed not to be able to open a checking account elsewhere.

Overdrafts of the Past

It is one thing if you know poor record keeping led to one overdraft charge on your account after another. You probably knew better, but because balancing checking items gets lost in all the other things on your to do list, it is just the way things have to be. A few mistakes on the checkbook register and you are forced to face a future with the inconvenience of what poor credit can do as far as banking goes. Perhaps you can simply wait out the years it takes for the bad credit remark to fall off, but in the meantime you are stuck.

It is another thing entirely if an unfortunate crossing of one check in the mail with a debit at a gas station resulted in your bank charging several fees which made getting your account out of the red next to impossible. If that gas station caused an authorization or hold amount to be placed, it might have caused even more fees and even more of a negative balance. That was before the actual gas amount that was purchased gets factored in, creating even more fees.

In an instance like this, perhaps by the time your next paycheck arrived it would have been guaranteed to go to making up the fees leaving you completely underfunded to take care of normal bills and expenses. In order to survive a situation like this you may have abandoned that checking out of need. Even though there was a negative balance on it, there was no way to pay that amount up so unexpectedly and still managed everyday expenses.

As such it probably was not long before the bank closed it due to an extended overdrawn checking balance. It may feel that it was not your inability to be responsible that resulted in this occurring. Yet, because of this you have been living on money orders and keeping cash around on hand. All because it is guaranteed that you cannot open another checking line anywhere else. Fortunately, this is where guaranteed checking account products can be of help.

A Fresh Start Guaranteed

A guaranteed checking account is something that even a person with bad credit will qualify for. Many banks and lending institutions use certain types of credit sources to qualify individuals for an account. Banks that offer guaranteed checking account products often do not use the same credit sources and as a result can accept you no matter what.

Some banks also offer guaranteed products even though they do use credit ratings to qualify customers. Often local or smaller banks will qualify individuals for a guaranteed checking account despite a poor credit mark. Still other lenders, usually banks that operate solely online, easily can get any individual wanting to make a fresh start into a guaranteed product.

The one thing to keep in mind when searching for an ideal guaranteed checking account is that there may be a few requirements to meet in order to open one. There may be a minimum deposit required. This can sometimes be around $100.00, so be prepared to actually save up some funds before applying for a particular guaranteed checking account.

As with any type of banking product, you also want to know clearly what the terms of service are. A guaranteed checking account may offer traditional checks or only a debit card. If you are particular about having paper checks, be sure these are available before depositing a significant sum with any financial institution.

Generally, online oriented banks will be the types to offer only debit cards to use without paper checks. Debit cards may also incur various fees for use. In fact, most of these types of products will probably cost a little bit more than you are used to, but remember this is due to credit risks that you pose.

Despite any bad hits to credit in the past, a guaranteed checking account can give anyone a second chance. This will allow you to establish a much better credit rating in the future. Any charges that the new product cost are probably worth it for the convenience it affords. Besides this, those charges may eventually become a thing of the past as you prove yourself to be the responsible banking customer you are.