After being discharged from your bankruptcy, it may be extremely difficult to open a new bank account. The first thing you should do, even if you are in the process of going through a bankruptcy, is to open a basic bankruptcy bank account. These accounts are designed specifically for those with terrible credit ratings such as individuals who have/are going through a bankruptcy.
Step By Step Instructions on Opening an Account after Bankruptcy
By following the steps detailed below, you should little to no trouble opening a bank account after bankruptcy. Remember that these instructions are not a guarantee; they just provide the best guidelines to follow in order to successfully open an account after bankruptcy.
Step 1: Research which banks will actually consider opening a new account for those that have been discharged from a bankruptcy. Finding banks that are not associated with ChexSystems are your best bet. This means that small banks and credit unions will be your best option.
Step 2: You can actually improve your chances of opening an account with banks that use ChexSystems even if your credit rating is extremely low. The best ways to do this are by requesting the bank to remove it from your file if your debt has been paid, and by getting a statement placed on the ChexSystems report that shows you have paid off your debt in its entirety.
Step 3: Before opening a checking account, open a savings account. The majority of banks will agree to open a savings account for you since they will not have to worry about checks bouncing or an individual incurring overdraft fees. If after some time you have successfully maintained your savings account then you may request to have the bank open a checking account for you. This demonstrates to the financial institution that you indeed capable of being responsible for your finances.
Step 4: Obtain a certificate of deposit from a bank and pay in cash. Kindly ask the financial institution to open you a checking account using your certificate of deposit as collateral. When cash is involved, banks are more likely to cooperate.
Step 5: Enroll in financial classes. Some banks actually allow people with low credit ratings to attend classes that discuss the skills you will need in order to keep a checking account current and apply for new accounts.
Alternatives to Bank Accounts
Although some individuals would find it nearly impossible to live without a checking account, it is pertinent to know there are various alternatives out there for you. One of these alternatives would be prepaid cards. Certain cards, such as the Cashplus prepaid Gold MasterCard will actually help you to revive your credit rating, one purchase at a time. The other good thing about this particular card is that it has a 100% acceptance rate. This card does not require a bank account nor a credit check; not to mention, your wages can be paid directly onto the card!
Another option would be managed bank account for those who have undergone bankruptcy. Although there is a small associated with the managed accounts, these accounts are becoming more and more popular since you are guaranteed to be accepted, even as an individual who has gone through bankruptcy.
What Is the Best Option
All in all, it is ultimately up to you to decide what benefits your more. Depending on the individual, different options will be open to different people. If you are unsure still of the best way to go about opening a new account then seek professional help. There is no shame is asking for help when it comes to your future. There are a multitude of banks offering a plethora of options for those who wish to open a new bank account either after or during a bankruptcy. Do your research and you will make the decision that works best for you.