There are few things as frustrating as going into a bank branch to open a checking account, only to be told that you’re not eligible for a new account because of blemishes on your credit report or because of your name being listed on a Chexsystems report. With the economy being in bad shape, lots of people have taken serious hits when it comes to their finances, and the number of people whose credit has deteriorated has increased dramatically. So now what you get is a lot of people looking for banks that don’t rely on your credit rating to allow you to open an account. Bank accounts with looser requirements are necessary because not only do you need them from a convenience standpoint to do your regular financial transactions, but you also need an account so that you can get your finances back on track because relying on check cashing services to do all your financial transactions is a very expensive option.

Second chance checking accounts

This is where second chance checking accounts come in. If we’re (brutally) honest, we have to tell you that your options will be limited, because as weird as it may sound, financial institutions are not very risk-prone. What you’re looking for is a bank that will offer you a checking account with standard features, but that will be willing to overlook your bad credit. Checking accounts for people with bad credit are not a different product per se: behind the scenes, they work in exactly the same manner. The only difference is that because you’re considered a “higher risk”, you will pay higher fees and service charges compared to people who have “regular” checking accounts.

To open the account, the requirements are minimal (the hardest part is actually finding a bank that doesn’t check credit): have a government-issued ID and a valid Social Security number. This is required because of fraud verification, and also to make sure that the financial institution complies with FINCEN, which is a set of financial requirements to combat terrorism financing and money laundering.

Advantages and features of second chance bank accounts

Like we said previously, second chance checking accounts work the same way a regular bank account does. You will get standard features such as direct deposit, online banking, online bill pay, Visa or Mastercard debit card, ATM transactions, and so on. As for the restrictions, there’s a good chance you will have limited check writing privileges (if at all), and you will certainly not be allowed overdrafts. But considering how those overdraft fees can quickly pile up, we’re not sure that’s a bad thing.

Even though such accounts do come with their drawbacks, they are viable options as long as you remember what got you in trouble in the first place and do your best to manage them well and qualify for the “regular” accounts as fast as possible. Consider the fees as you paying back your way into the good graces of the financial system. In any case, it beats carrying cash everywhere (which is really not safe). Banks that don’t check credit provide a good solution to people looking to get their financial house back in order.

Banks That Don’t Check Credit To Open New Accounts | Second Chance Checking Accounts

Are you a business owner looking for more ways to save? Chase’s Ink Classic card offers an excellent rewards program that just might be what you’re looking for (if you qualify for it). This card is designed for small businesses and sole proprietors that want a simple rewards program and no annual fee. It’s also a good fit for those who want to earn points (Ultimate Rewards Points) toward free travel on all of their business purchases but don’t want to be restricted to any single airline or hotel program.

The biggest benefit of cash back credit cards is of course that you can redeem your rewards in the form of cash, which you can use to offset your business expenses. The more qualifying business expenses you put on your card, the more cash you’ll get back.

Features

In a nutshell, the Ink Classic offers the opportunity to:

• earn 5 points per dollar spent, up to $25,000 each year on office supplies, phone service, cable, and wireless internet
• earn 2 points per dollar spent, up to $25,000 each year for travel purposes (fuel and lodging)
• earn unlimited rewards (1 point per dollar spent) on anything else
• get a one-time bonus of 15,000 points after first purchase
• get a one-time bonus of 10,000 points after $5,000 is spent in the first 3 months of card ownership
• pay no annual fee
• get 0% introductory APR on purchases for 6 months; no interest on your purchases from the date you open you account until the close of your 6th monthly billing cycle
• get 0% introductory APR on balance transfers for 6 months; transfer outstanding balances from higher-interest rate cards and pay no interest on those balances for the first 6 monthly billing cycles you have your account
• get free additional cards for employees (no per-card fees); earn points/cash back on additional cards; set spending limits on each card
• get free monthly statements and quarterly management reports; expenses are itemized and categorized to to streamline tracking of business spending
• get Zero Liability Protection; you are not liable for unauthorized purchases made with your Ink business card.
• get other benefits like travel accident insurance, auto rental insurance, roadside dispatch, baggage delay refund, 24/7 real-person customer service, purchase protection, extended warranty, fraud early warning service, etc.

Because your points never expire, your bonus 25,000 points amount to $250 that you can redeem towards travel, experiences, gift cards, merchandise, and more anytime you want.

In keeping with its intent to be a true business credit card, the Ink Classic’s rewards are specifically designed to benefit a business user by providing the most rewards points for expenses that are vital to most small businesses. The Ink Classic card is a good option for the business owner that travels regularly. You get double points when airfare is purchased through Ultimate rewards, as well as complimentary access to over 600 airport lounges in more than 100 countries worldwide for one year for two members. The first two lounge visits are free, then Ink cardholders simply pay a discounted rate of $27 per person per visit for themselves and any accompanying guest(s) when visiting a participating lounge. This offer is valid for only your first year.

Chase Blueprint system

You get to control which expenses you pay down each month, which balances to tackle first, and even how fast you want to pay off the balances you carry on your card. Choose from:

• Full Pay. Avoid paying interest on what you choose by paying for them right away, even if you carry a balance on other items.
• Split. Manage large purchases more effectively by making monthly payments towards paying them off. it separates the larger purchase from the rest of your balance on your statement so you can set a goal date and monthly payment, and get to work paying it off.
• Finish It. Pay off your debt faster by choosing a goal date or monthly amount, Chase handles the rest in the background.
• Track It. Get feedback on how your money has been spent by seeing spending trends so you can track your progress and goals.

These tools let you decide what you pay and when, and even let you avoid paying interest in spending categories you use the most. This way you can better manage your finances, get out of or stay out of debt, earn better rewards with your card, and generally pick up healthy financial habits that will help you out in the future.

Related: Chase Bank & ChexSystems

Terms & Conditions

• 13.24% to 19.24% annual APR and balance transfer APR after initial 6-month introductory offer
• 19.24% to 23.24% APR for cash advances
• 29.99% penalty APR
• $15 for balance transfers or a 5% fee, whichever is higher
• 3% foreign transaction fee

Verdict

As you can imagine from its requirements, it will be difficult for new businesses to qualify for this card. If you own a growing small business and you qualify, definitely consider the Chase Ink Classic Business Card. Its simple and convenient rewards program and the fact that those rewards never expire make it a great card for businesses that choose to use credit cards to pay for all of their purchases and then pay off the bill every month.

How to apply

You can apply for the Ink Classic business card online; if you qualify, you will get you approval instantly. Keep in mind that both a tax identification number and a legal business name are required in order to apply, and your company will need to have a great Dunn & Bradstreet score in order to qualify for this card.

Credit score needed

Credit score requirements: Excellent (750+) – [What's a good credit score?]

Chase Ink Classic Business Card Review | Up to 25,000 Bonus Points

Are you a Los Angeles resident who’s trying to open a bank account but is unable to because you’ve been reported to ChexSystems? Well depending on what your requirements would be, and your specific situation, there are several options that are available to you.

Did you get reported to ChexSystems because of fraud?

If that’s the case, then you will have a very hard time finding a bank that will agree to do business with you. Even some of the prepaid debit cards may decline your application.

Did you get reported by mistake?

Learn how to dispute a ChexSystems report.

Did you get reported to ChexSystems because of unpaid overdrafts?

If you have an overdraft that you haven’t paid for, the bank will close your account and send your information to ChexSystems.If you find yourself unable to open new accounts because of this, you need to go to the bank that reported you in the first place; they’re the only way for you to get out of ChexSystems. Explain what happened and offer to pay for what you owe, but in exchange they must agree IN WRITING to write ChexSystems and ask that your name be removed. It’s very important that you get their agreement in writing because they may not follow up.

If you paid the overdraft  and are waiting for your name to be cleared on ChexSystems’ database, you can ask the bank for proof that your debt is paid off. Some banks will agree to open an account for you even if your name is showing on ChexSystems, as long as you can prove that you don’t owe money to another bank.

How long has it been since you were reported?

Your information stays on file for five years. If it’s been four years and you only have one year to go, maybe it’s best that you wait it out.

What are my checking account alternatives in Los Angeles?

If all else fails, you can use a prepaid debit card as a checking account alternative. There are many of them that will give you most of the features you would get with a regular checking account: Western Union, Ace Elite, Rush Card, Walmart MoneyCard, Amex Prepaid, and so on.

Why can’t we give a list of L.A. banks that don’t use ChexSystems?

The first reason is that, from a logistical point of view, that would be a nightmare. Banks change their policies all the time and the sheer number of them would make such a list so hard to maintain that there’s no way it could be priced in a way that makes sense for both the customers and the people that make it. Lists that you see marketed online are just bogus lists copied from Yellow Pages and other sources and pasted.

The second reason is that many banks may actually open bank accounts for people on ChexSystems but would rather not advertise it, because it’s something they do on a person to person basis, and they don’t want it to get out of hand. With the number of people in financial trouble, non Chexsystems banks are in high demand these days.

Non ChexSystems Banks In Los Angeles | LA Second Chance Checking Accounts

Although there is a big stigma attached to it, filing bankruptcy is one of the legitimate ways that is at one’s disposal to literally start over financially. You can get rid of substantial amounts of debt, freeing up some much needed cash flow. That money can in turn be used more wisely so that you can avoid falling into the same problems down the road.

Of course, this is easier said than done, and there’s the small matter that bankruptcy is the single worst thing that can happen to your credit score. Not only does a bankruptcy ruin your credit rating, but it also stays on your credit report for 10 years (other information on your report falls off after seven years). A low credit rating makes it very difficult to be approved for car loans, home loans, and even credit cards. Well to be totally honest, you technically can get those loans, but the interest rates will be very high; there’s also the option (that’s gaining in popularity) of using secured credit cards to repair your credit. Let’s not even talk about the credit card offers you will get right after getting discharged: you will pay through the nose for that “privilege”. But in any case it doesn’t hurt to be in the know if you want to repair your credit after getting your bankruptcy discharge.

Another reason to start the process as soon as possible is that if you ever again plan on applying for a job (a lot of them run credit checks), buying a home, buying a car, or even going on vacation and securing a rental car, you are going to need credit. Of course, you will have to be patient, because the improvement is not going to happen overnight, but nothing says that you can’t do your best to speed up the process. The following tips will put you on the right track:

Get your credit report and check it regularly

The very first thing you should do is pull a copy of your report from one of the credit bureaus to make sure all of the information on there is correct. Some people suggest getting all three copies because they differ and you want to get any errors fixed on all three. You’re entitled to one free credit report per credit bureau every twelve months, although the scores are never free and you have to pay to get them. Don’t believe the commercials, the advertised score is not free, it’s free when you agree to pay a monthly fee. Don’t ask us how that makes sense!

When reviewing your report make sure all of the creditors are reporting your information (including the bankruptcy) accurately, and if they are not you need to dispute this right away. Make sure the debts that were part of the bankruptcy are properly noted, usually with a “BK” notation. You want creditors to know that you no longer have those debts. If there are any discrepancies you will need to dispute them right away. Fill out the form that came with your report, make a copy for your records and mail it to the bureau through certified mail. They must verify that the information is correct and if they can’t they must remove it from your report. Only after you’ve thoroughly verified that all of the information is correct can you start working on rebuilding your score.

Now this where you need to make a judgment call. You can either get all three of your reports for free and then three to six months later purchase them to make sure everything has been correctly reported, or you can order them one at a time, at 4 month intervals, to monitor the changes.

Make a budget and stick to it

Now that you no longer have to make all those payments on your debts, it’s time to make a new a monthly budget. Make sure your expenses do not exceed your income. This is probably one of the most important steps, as it sets up the building blocks for your new money habits so you don’t get yourself right back in trouble.

Get new credit

It may be hard to get an unsecured credit card after filing for bankruptcy but as soon as you start getting positive information listed on your credit report, apply for a credit card and start using it moderately. By moderately we mean pay if off every month. A lot of people say that it’s best to try with a retail card, but if you want to make sure you’ll be approved, get a secured credit card (your credit limit will be equal to an amount you deposit at the bank). Use it and make sure you pay it on time, so that you start proving to lenders that you are capable of handling revolving credit (and possible higher debt loads in the future, like a car or home loan)

Taking out a small secured loan through your local credit union is another way to start re-establishing your credit after bankruptcy. Be sure to make your payments each month and on time. As an added bonus, if you have both revolving credit and installment loans, this improves what FICO calls your “credit mix” and bumps up your score.

Pay your bills on time

This can not be stressed enough: all your bills should be paid in time and in full. On-time payment history is the single biggest factor in raising your credit score, accounting for 35% of your score calculation. If you want to be absolutely sure that you won’t miss any payments, set up automatic payment plans because you (literally) can’t afford to have late payments showing up on your report. And if you have a student loan (those aren’t discharged in bankruptcy), be sure you pay on time. You are already considered an extremely risky borrower, so any indication that you are slipping into old patterns will not bode well for your credit score. You must pay on time and in full each month. All those on-time payments will ultimately raise your score and start making you look more attractive to creditors.

Don’t max out your credit cards.

If you cannot pay your credit cards in full, try your best not to exceed a balance that is more than 30 percent of your limit. Your balance-to-limit ratio (the amount of outstanding credit you have to available credit) is another big part of the credit score calculation.

There are no magical shortcuts, but the above tips may prove helpful. Once again, you will not fix your credit overnight, and you will need to be diligent and patient with the process. But with the right knowledge, and with better financial habits, you can once again have “good credit”, sooner than you thought you would.

Credit Repair After Bankruptcy | Improving Your Credit Score After Bankruptcy

It’s pretty well-known out there that ChexSystems is basically the watchdog of the banking world. This is the database that all banks (well depending on the estimates, anywhere between 80 and 90 percent) report to whenever there has been an issue with someone’s bank accounts. This issue can be repeated overdrafts, unpaid overdrafts, or fraud, and so on. When that happens, your information gets sent over to ChexSystems, who maintains a database of all such reports. Every time a prospective customer shows up to open a new account, their name is compared to the database to figure out if there are any known issues with them. If there are, chances are that they will get denied the chance to open a new bank account.

Related: How long does your name stay on Chexsystems’ database?

We know that most big banks use ChexSystems, but we wanted to know specifically how different banks handle it. So we made a call to Citibank’s customer service to clarify things. Here’s what we found out:

Do they use Chexsystems?

Yes, they do

What options are available to someone who has their name on ChexSystems and wants to open an account at Citibank?

They have to clear out the issue with ChexSystems first

What if the person paid off an overdraft that caused them to get listed and can prove it?

They should go to the bank that reported them and have that bank have their name removed from ChexSystems’ database

Is the ChexSystems policy company-wide or do the branches have some leeway?

All applications are processed through ChexSystems. For the ones that are made by phone or online, you get denied automatically if your name is on the so-called “black list”. For applications that are filled out in a branch, we could not be given a definitive answer as to whether or not someone at the branch would have the authority to approve opening an account even if the prospective customer is on ChexSystems. We’re inclined to think that there wouldn’t be much in the way of flexibility, but you never know. It might be an option worth pursuing.

Related: Banks that don’t check your credit

Does Citibank Use ChexSystems? Their Customer Service Answers

You’ve fallen behind on your payments, whether it be student loans, or credit card debt, or your car loan, and now you jump every time your phone rings: what if it’s a bill collector trying to get a hold of you? Or worse, what if the bill collectors are calling your friends and family members so that they can find out how to reach you? It’s not a good situation to be in, and most people struggle with how to handle it.

When a debt collector starts the process of trying to collect on a loan, the first thing they want to figure out is where they can reach you: where do you live, what’s your phone number, where do you work, and so on. A lot of times that information may have changed, so they will turn to other sources to get it, such as a business or a relative. And while the practice itself is legal, a lot of times debt collectors cross the line. So how do you know when your rights have been violated?

What’s legal?

When it comes to contacting third parties, debt collectors are allowed to verify your contact information (address, phone number, workplace). That’s it!

What’s illegal?

Debt collectors may not:

• harass, oppress or abuse any third parties they contact about you.
• advertise your debt by revealing to others that you owe money
• falsely represent themselves as attorneys or government employees if they are not

So if a debt collector calls a third party and tells them that they’re trying to get in touch with you because you don’t pay your bills, that’s illegal. If a collector has violated your rights, you can sue them for actual damages plus $1,000 in punitive damages. To report a debt collector for violations, go to your state Attorney General’s office and to the Federal Trade Commission. You also have the option of suing said debt collector within one year of a violation. If you win, they’re liable for damages that you can prove, such as lost wages. You could also be reimbursed for your attorney’s fees and court costs. Keep in mind however, that winning a case against a collector who violated the law doesn’t mean that you no longer owe the money.

The same rules that apply to debt collectors calling you apply to them calling third parties about you. So if your relatives, friends or neighbors want to stop receiving these calls, they just need to tell the debt collectors to stop contacting them. By law, they will be required to stop all those calls. If they don’t, there’s grounds for these victims to file a complaint to the Better Business Bureau about these debt collection agencies’ unscrupulous business practices.

Debt Collectors Calling Your Friends Or Relatives: What’s Legal And What’s Not

American Express keeps looking for (and finding) ways to make its business credit cards more and more attractive. Their Business Gold Rewards card is designed for the small business owner who pays the bills in full every month and wants to enjoy the reward benefits of Membership Rewards. Now for a limited time, new signups have the chance to earn 50,000 Membership Rewards Bonus Points when you spend $10,000 in the first 5 months of being a cardholder, on top of earning three points for every dollar you spend on on airfare, two points per dollar spent on advertising, gas, and shipping, and one point per spent dollar on everything else.  The 50,000 points can be redeemed for 50,000 frequent flier miles, enough for two airline tickets or $500 in gift cards.

Another interesting feature that you get with American Express is that if you have the personal Amex Gold Card and get the business card, you can earn Membership Rewards points on both cards under one Cardmember account.

How to qualify for the 50,000 Membership Rewards bonus points

To qualify for the bonus, new cardholders must spend at least $10,000 during the first five months, an attainable threshold for businesses. Customers must apply using bonus ID 6752 no later than November 28, 2011 and spend $10,000 within the first 150 days after opening an account. Then, they will receive the points 6 to 8 weeks after hitting the $10,000 mark.

Pros (Features & Highlights)

• LIMITED TIME OFFER. Earn 50,000 Membership Rewards® Bonus Points when you spend $10,000 in the first 5 months of card membership
• Extra points. 3X points on airfare | 2X points on advertising, gas, and shipping | 1X points on everything else
• No interest charges. Since this is a charge card, not a credit card, you have to pay your balance in full each month and therefore there’s no APR or interest to worry about, but you still get to earn rewards with your spending. You do have to make payments on time,  your balances are due in full each and every month. Should you not pay your balance in full by the due date, you will be assessed a fee, and depending on your history (or lack thereof) with American Express, your account may be closed without notice.
• One million rewards from over 500 brands. American Express has more airline and hotel partners than any other rewards program. Redeem your points for a wide variety of rewards such as travel rewards (no restrictions or blackout dates) including hotels, cruises, and rental cars, merchandise, latest electronic gadgets, Ticketmaster tickets, dining, designer clothing, gift cards and much more. American Express even has a partnership with Facebook that allows you to redeem your rewards points for Facebook ads: each $6,750 spent on the card is worth $50 of Facebook advertising.
• Unlimited Rewards Potential. There is no limit to the number of points you can earn and points do not expire. Membership points can be transferred to other American Express accounts for faster accumulation.
• Exclusive access to Gold Card Events. As an American Express Gold Card, you are eligible for upgrades and perks that the general public doesn’t have, and in many cases, when booking events, you may buy tickets (Presale Event Access) before they are out for sale to the general public because American Express reserves seats at thousands of venues and holds them for Gold Card members.
• Event Ticket Protection. If you charged tickets to your card and can’t attend, you’ll be reimbursed up to $1,000 per event, per year.
• No annual fee for the first year, a savings of $175.
• Automatic savings through American Express’ OPEN Savings Program when you spend at participating companies. Using your card to automatically get rebates ranging from 3% to 10% on your business purchases at OPEN Savings partners, including (but not limited to) travel and car rental to office supplies retailers, merchants and dining establishments. The discounts are automatically credited to your statement each month.
• Unlimited Additional Gold Cards for an additional annual membership fee of $50 (waived for the first year)
• Annual Travel Benefit. You get a statement credit of $100 every year when you book a cruise or vacation of $3,000 or more through the American Express Travel Services website.
• Travel insurance is included with membership and covers emergency transportation and medical care.
• No pre-set spending limit. Unlike most cards, this Business Gold Rewards Card does not have a specific spending limit, which is useful when it comes to cash flow flexibility. However that doesn’t mean unlimited spending. Your spending limit adjusts based on the usage of your card, your payment history, credit record and other factors.
• One-click online integration with Quickbooks. This feature helps improve accounting and streamline record-keeping processes. Charges are tracked, summary of accounts created, and all important financial information is quickly imported.
• Purchase protection. Up to $1,000 in coverage for eligible purchases that are damaged or stolen within the first 90 days after the purchase ($50,000 limit per Cardmember account per calendar year)
• Return protection. Up to $300 in coverage per eligible item if a vendor will not accept a return ($1,000 annual limit)
• Extended warranty. Up to 1 extra year on a manufacturer’s warranty for eligible items that covers up to $10,000 per occurrence ($50,000 annual limit)
• Baggage insurance plan. Up to $1,250 for carry-on baggage and $500 for checked baggage is available if it is lost or stolen on a plane, train, ship, helicopter or bus when you purchase your Common Carrier Conveyance ticket with your Card
• Car rental loss and damage insurance. Use your eligible Card to reserve and pay for an auto rental, and decline the collision damage waiver at the rental car counter, and you can be covered if the car is damaged or stolen. Coverage applies for the first 30 days of an auto rental if rented from a Car Rental Company
• Dedicated customer service. Access to consultants who know your company to assist with Dispute Resolution and billing inquiries
• Dispute Resolution. Unauthorized charges are investigated immediately and you are not responsible until your case is resolved.
• Identity theft assistance. Call AMEX the moment you think your identity may have been stolen
• Roadside assistance. This perk includes towing, flat tire repair, battery jump, fuel delivery and locksmith services–all at no cost. Essentially get the same service you would get with AAA! You get up to 4 service calls per year valued at $50 each.
• Account Access/Management. American Express Business Gold Card members can access and manage their account entirely online, even receiving regular updates and account activity notifications on their mobile phones or PDA devices. Advanced online statements breakdown your expenses and the year-end summary can simplify your accounting. You can authorize someone to manage your American Express Business Gold Card account and issue secondary cards to your employees.

Fees

• Annual fee of $175 (waived in the first year)
• 2.7 percent foreign transaction fee
• Late fee of $35 or 2.99 percent of the past due amount, whichever is greater
• Returned payment fee of $35

Cons

• $175 annual fee. For the first year, the annual fee is waived. Thereafter, you need to pay $175 yearly for this card. This is not a cheap card, but the potential rewards more than make up for it. If you’d like to try the card, you can do so without paying the annual fee by closing your account before your anniversary date.
• High credit score requirement. You have to have a very high credit score to be approved.

Verdict:

The Amex Business Gold Rewards card is ideal for established businesses and offers plenty of generous ways to earn rewards points. It is a poor fit for businesses that usually carry a balance through several billing periods. This charge card comes with solid customer service, a great rewards program, tools to manage your budgets and card account, and features including extended warranties, purchase protection, and travel protection. If your business has the level of expenses that would earn you more in rewards than the cost of the annual fee, and is capable of paying the bill every month, you should consider the Business Gold Rewards Card® from American Express OPEN and take advantage of the rewards.

Business Gold Rewards Credit Card From American Express Open: A Review

The idea behind opening bank accounts for children is that it’s never too early to start teaching them about money: how to earn it, how much to spend, and how much to save. Ideally, you get them to earn it through an allowance (emphasis on the earning; no allowance just for the sake of allowance), and then teach them rudimentary budgeting so they can figure out what happens once they get the money. This is where they start when they spend the money, which lays the foundation for them to understand the concept of saving. From that perspective, opening a bank account for your child makes sense and one can argue that it’s best to do it as early as possible.

While as adults, we have come to fully grasp the importance of basic financial skills such as budgeting, investing, and generally planning our financial future, most of us totally neglect teaching those very essential skills to our children. Some have suggested that since most people struggle with managing money, they subconsciously consider themselves ill-equipped to teach their kids about money. Well just look at it this way: by giving your child a strong foundation in money management, you’re preparing them to avoid a number of pitfalls in the first place, which will make things easier for them as they grow into adulthood.

Where and how to open your kid’s bank account

Considering the fact that we’re dealing with youngsters, it’s preferable to start off with a high interest savings account for kids, although most banks do offer both checking and savings accounts. When they grow older (into mid-teens), then they can “graduate” to checking accounts, which typically come with a linked debit card. Finding a great account is actually easier than you may think: banks compete quite fiercely for new savings accounts. Getting a new customer at such an early age increases the chances of them becoming lifelong customers. Most of the best bank accounts for children will offer pretty good interest rates and possibly other benefits which are considered promotional expenditures to lock in those new customers.

After deciding which type of account you’re opening, go to the bank with your child. At this stage, your child should know that a bank is a place you put your money until you need it. You should also have had a conversation about interest: what the bank pays you for the privilege of holding your money. Let the bank associate talk to your child: this way he/she will feel a lot more involved in the process. Make sure that the account is in your child’s name and all the mail is addressed to him/her. Your child will feel like a grownup when those statements start coming in the mail every month, just like mom and dad’s!

Make sure you pick a bank that doesn’t charge monthly maintenance fees or have minimum balance requirements; also make sure there is no limit on the number of small deposits. Be especially watchful of the definition of inactive accounts and the associated fees. Why? because of the nature of the account you’re opening. Ideally, your kid will be making deposits when they get their allowance (to reinforce the concept of saving before spending), but in reality the account might go untouched for extended periods of time. You don’t want your child to get unwelcome surprises when they open up their statements.

Speaking of statements, when they arrive, go through them together and explain the interest and any other numbers that may appear upon it. It will be much easier to explain the power of compounding if the account is earning interest.

The first bank you check will likely be your own bank: less paperwork because your own account is already there. Now in case their offerings don’t really match what you’re looking for, then you should scope out the competition, including the credit unions and online banks. Depending on the age of your child, your requirements for the accounts will differ, so consider how your child will use the account when making your selection.

Once you’re comfortable with the account selection (and your kid is, too), it’s time to read and sign the paperwork. Of course, your child will have to sign as well. Your child will then be assigned their very own account number so they can make the first deposit. He/she will also receive a register to keep track of deposits and withdrawals, which should be no problem if you’ve previously done your homework and taught them everything they need to know about that.

Enabling your child to open a bank account is a great first step to teaching them about money, including budgeting and basic investing (that’s why an interest-bearing savings account matters). After they make that initial deposit, you now have a good starting point to sit them down and help them draft their own budget, including savings. It’s a very important skill to build and it will serve them well throughout their lives to help them develop a very strong financial literacy.

Bank Accounts For Minors | Opening Children’s Checking Accounts | Kids’ Bank Accounts

The No-Fee $10 purchase cushion is a feature offered by Ace Cash Express and NetSpend on the prepaid debit cards that they issue.

It works exactly as its name suggests. We all know how prepaid debit cards work: you load the card, and then you get all the convenience associated with a debit card, until your balance reaches zero. Typically, a prepaid debit card will not authorize any transaction for an amount greater than what is on your balance, even if it’s a couple dollars. So let’s say you have $52 dollars left on your account but need to pay for a $55 purchase. Most prepaid cards would decline the transaction. With a no-fee $10 purchase protection, your transaction will be approved as long as your shortfall is $10 or less.

Now that doesn’t mean that you were extended $10 worth of credit; on the Ace Cash Express website, they call it a non-contractual courtesy, and you are expected to pay that money back as soon as possible. It doesn’t look like it’s much, but when you consider that you don’t have to pay any overdraft fees for that feature, those debit cards certainly differentiate themselves from the competition.

No Fee $10 Purchase Cushion | Best Prepaid Debit Card Features

If you’ve been reported to ChexSystems, then you already know how much of a hassle it is to find a bank that will open new bank accounts for you. Actually you might be just in the middle of that search, which is why you’ve landed on this page. Most people in this country have no idea what ChexSystems is, but as soon as you’re in trouble with them, you realize that they are pretty important. ChexSystems is a reporting agency that is used by the banks to screen applicants for new accounts. If your name is on their list, that means that you have had trouble with other banks in the past and as a result, they don’t want you as a client.

Most of the banks in the country use that database to guide their decisions; it’s estimated that about 80% of them do, although some say this estimate is probably closer to 90%. So if you’re looking for a non Chexsystems bank, you can understand that the odds are against you. But that doesn’t mean it’s impossible! As a matter of fact, you need to do something about this because once your information gets reported to them, your information stays there for the next five years (unless you’re a victim of identity theft or reach a deal with the bank[s] that reported you).

Here are your options:

1. Non Chexsystems banks. As their name suggests, these are banks that either don’t use the database at all to screen new account applications, or use it but just as a guideline, leaving the possibility of opening you a bank account even though you’re on ChexSystems’ list. Regional banks are a more realistic target, as most of the major banks use ChexSystems. As you can imagine, this can become pretty hard, but it is still feasible. We have a (partial) list of New York banks that reportedly don’t use ChexSystems, but please understand that this is something we have no control over and that the banks are free to adjust their policies according to their business goals. Banks: Abacus Federal – Allied Irish Bank – Bank Of New Hampshire – Bank of New York – Community Bank – Cross County Federal Savings Bank – Great Eastern Bank – Homestead Savings – Tompkins County Trust Company. Credit Unions – Alternatives Federal Credit Union – Columbia-Barnard Federal Credit Union – First Entertainment Federal Credit Union – Ticonderoga Federal Credit Union
2. Prepaid debit cards. This is an option that is almost guaranteed to land you a second chance bank account. But the catch is that it’s not really a “bank account”, it will be a prepaid debit card that will give you almost all the features that you would get if you were to open a regular debit card. This convenience, of course, comes at a price. Some prepaid debit cards saddle you with a lot of fees, while some will be very competitive in their offers. It will be up to you to do some comparison shopping before picking. In New York, the Excella prepaid debit card and the Western Union reloadable debit cards are very popular options.

Second Chance Bank Accounts In New York | NY Fresh Start Checking Accounts