The Frugal Rebel » Consumerism

What You Can Do To Get A New Checking Account

Kevin — Fri, 16 Jul 2010 18:14:06 +0000

Getting a checking account can be hard when you have had credit problems in the past, have had an account closed on you for over drafts, or being stuck in Chexsystem for whatever reason. Fortunately, there are some financial institutions that will offer second chance accounts that do not run your name through Chexsystem to determine if you are eligible for a new account.

Second chance bank accounts are a way to build your credit back up while managing your money and gaining trust with your new institution. Many times you are required a down payment of $200 to open the account, but this is not always the case. More often, however is that you pay a monthly service fee to maintain your account and keep it open. This becomes nominal after a while since your credit score is continuously getting better. Should you be charged a down payment it is normally there to cover any overdrafts you may have on your account and may be refunded when you close your account. It’s almost like insurance that you can draw on when you’re really in need of cash.

Another benefit is that after a year or so of responsible banking you will probably be offered an upgrade to a standard checking account that offers lower fees. As soon as you get back into the swing of regular banking you will have already been removed from Chexsystem and the benefits of responsible borrowing and banking will be pretty clear.

Not all banks offer second chance accounts, so don’t get discouraged should you be turned down at some of the larger institutions. Even at some banks that will offer you another opportunity, they may limit some of the things that you can do with your account, normally online banking. Making sure that you read the fine print before you sign up will help you understand what you’re getting in to and help you get back on the right track.

What Makes Checking Accounts Excellent to Have

Kevin — Thu, 15 Jul 2010 08:52:03 +0000

While it is not absolutely necessary to have a checking account to get by living, opening up an account with a reputable financial institution can make all the difference in the world. Making things much simpler, faster and safer. When it comes time to pay bills, depending on the individual, someone could go from carrying around a few hundred dollars to a couple thousand dollars just to get money orders. Although the chances of getting robbed are not very common, there is still that chance it could happen and that alone should be reason enough to open an account and take advantage of great checking account promotions going on. Many banks and credit unions will attempt to draw in customers because they want to increase their account holder number and profits thus if they are willing to give away some money initially they will make that money back somewhere down the line through loans and fees.

Being an account holder of a checking account is very safe, especially when dealing with a reputable bank that is insured by the FDIC (Federal Deposit Insurance Corporation) because up to one hundred thousand dollars is covered for each person. Furthermore, instead of having to get tons of money orders and carry a large amount of cash around it is much, much easier to simply pay bills automatically through the internet and set up a payment plan to withdraw the money right when the payment is required. When dealing with financial institutions, there are going to be some that are better than others and the most effective way to test several financial institutions out is by finding the best checking account bonus choices and giving each branch a shot. All in all, while it may take a little bit of time to find the perfect bank or credit union for staying loyal to, as long as someone takes advantage of the bonuses that are given then everything should be worth it in the end.

Three Reasons to Get Out of Debt

Kevin — Wed, 19 May 2010 04:37:48 +0000

Everyone knows we should get out of debt. We also know we should lose weight, but we just don’t until that high school reunion comes around. We all require motivation in order to make a change in our life. Presently the debt has allowed us to buy thing we wanted. That gratitude makes the debt feel good much like chocolate cake does. (Mmmm chocolate cake.) I just want to give you some reasons that getting out of debt might be worth the pain of spending a little less money.

Two Income House Holds May Be Hard to Maintain – The trend of two income homes has been on the decline in the United States. As jobs get harder to maintain and child care gets more expensive the reasons for one spouse to stay home is becoming more appealing. With that decision life style changes come into play and if you’ve already managed to eliminate debt from your budget you may be able keep your rounds of golf.
Interest Rates will Rise – Interest rates are at historical lows. I promise you they won’t go negative either (Japan already tried that) so they will rise. With more printed money and growing government debts inflation seems to be on the horizon. If you get out of debt and fix the interest rates on the debts that you can’t remove you won’t have to care what interest rates do.
Debt Saps Your Best Money Making Source – Your Income – Monthly debt payments take your ability to become wealthy away from you. Most of us don’t come up with a million dollar idea or pull a million dollar lotto ticket. However, lots of people earn their way to wealth over a life time, but it requires routine saving. It’s hard to save when you’re paying interest on goods and vacations that are long gone. Learn about stocks if you want to really find out what those monthly payments are costing you.

Hopefully, this sparks your thinking on getting out of debt. Read around more for yourself and decide if the time’s right for you to make a change.