Are you looking for online banks for bad credit? If you have bad credit you may still be able to get a normal bank account. If you have been reported to chexsystems this can be another story. Normally banks do not look at your credit history. They look at a report that is provided by a company called chexsystems. Chexsystems only reports what you have done at other financial institutions. This mainly includes banks and credit unions. If you do not owe any banks or credit unions any money you should be able to open a normal bank account. However if you have already tried to open a normal account and have been declined, you will probably need an online checking account. The same goes if you have been reported to chexsystems, you will probably need to open an online bank account.
Finding online banks for bad credit is not terribly hard. It can be misleading and confusing at times, but I will tell you what to look for. A lot of prepaid credit cards will try to offer themselves as bank. So, the first thing you should look for is if they will do direct deposits. Most prepaid credit card companies cannot do direct deposits. Most of the non chexsystem banks will make it a point to list that they take direct deposits. You also want to make sure that the card you receive works like a debit card. You will also want to make sure they offer online bill pay. This is a service that will allow you to pay all your bills online. Not many people use checks anymore and the online bill pay has been replacing that part for some time. Almost all companies will take payment through bill pay.
Now you know the basics of what to look for when searching online banks for bad credit. The next thing you will want to know about the non chexsystem checking account is the fees. Some have a monthly fee and some have higher fees when you use the debit card. I have found that the banks that charge a monthly fee tend to be cheaper in the long run. I use rushcard and I am on their monthly payment plan. They also have another plan where you can choose no monthly payments. I would use this if I was just paying my bills online. However, I use my debit card a lot and am always going to the atm so the monthly plan saves me money.
The last thing you want to look for in online banks for bad credit is to make sure they will let you sign up for free. You don’t want to pay money just to find out they are not the right bank for you. Most of the companies will let you sign up for free so you can see the inside workings of the bank. Once you have signed up you can login and browse the inside of their site. Then if you like everything you can pick direct deposit or any other method you want to be able to fund your new online checking account.