Having a personal checking account is almost a necessity. It certainly makes your life easier since you can use it to pay bills online, shop with a debit card, and have a safe place to keep your money when you get paid. Even if you don't write checks, it's still a good idea to have a checking account. If nothing else, it makes it easy to cash a paycheck or personal checks from others. Here are tips for opening a personal checking account.
Your Credit History May Matter
It's a good idea to do some research on the bank you plan to use before you apply because banks have different policies. Some may do a soft inquiry on your credit score, but others may do a hard inquiry that could affect your score. If the bank checks your credit, you might get denied for an account if you have bad credit.
If you've had a bank account closed before, you might be denied an account if the bank you apply with checks banking databases that hold information about customers with closed accounts due to overdrafts or other problems. If you haven't had any credit issues, then applying for a personal checking account is easy.
If you've had serious credit problems, you may need to look for a bank that works with people who have low scores, low income, or a history of account closure. These are often called second-chance banking accounts.
Fees Vary Among Account Types
You might get a banking account that has no monthly fee. However, it's also common to pay a set amount each month, and the amount varies by the type of account you get. For instance, student accounts might be free, but they may also come with limitations. If you want a full-service account that comes with perks, you may need to keep a high daily balance to get free checking.
Know how you intend to use your account, the type of features you need, and the monthly payment you can afford so you can compare different types of accounts and find one that's a good match. Each bank usually has multiple account types so you can find something that's a good match no matter how much money you plan to put in your account.
Account Features Differ Too
Another thing to look for when you're comparing personal checking accounts is the type of features that come with the account. Online banking is a handy feature to have, so you may want to verify the account you have offers it and how it works. Banks often pay your bill the next business day, but others may have a delay. Some might even offer same-day payment for an added fee.
A debit card is also important, especially if you don't have any credit cards. Otherwise, you'll have to carry cash around, and that's not safe or convenient. You may or may not want checks. Some accounts don't even offer the ability to use checks, since they only provide debit cards.
Banks also vary in their policies. An important policy to understand is the overdraft charge. Some banks won't allow overdrafts and some do. Some instantly charge the fee while others give you a grace period of a day or so to bring your balance up before charging an overdraft fee. Some banks may also limit the number of overdraft fees they charge in a day.
For more information, contact a company like Citizens Progressive Bank.
Share9 February 2023
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