New To Checking Accounts? What You Need To Know

Posted on: 17 February 2016

If you are new to opening a checking account, or are interested in opening an account after making bad financial decisions, there are some things to keep in mind. A bank or credit union is ideal places to keep your money, but you need to choose the right type of account that will cause you the least amount of risk. It is also important to be prepared in the event you are denied a checking account.

 Selecting A Low Risk Account

One of the first things to consider when you want to open a checking account is consider all of the options that are available to you. There are a variety of banks that will only allow you to spend the money that is in the account in order to prevent any overdrafts. These types of accounts are considered low risk because it will save you money in the form of overdraft fees. When an account goes over the amount of money in the account, it can result in an account suspension. There are some people who can greatly benefit from these low risk accounts, especially if they are just learning how to properly manage their money.

There are some financial institutions that provide accounts with no overdrafts but they are not widely advertised. This is simply account that does not punish the account holder if you spend more money that is in the account. If you are interested in this type of low risk account, you will have to visit different financial institutions and inquire about the possibility of opening a no overdraft account.

What To Expect If You Are Denied

Unfortunately, there will be some instances in which people are denied for checking accounts. This is largely due to having negative feedback on a checking account consumer report, such as an account closure due to non-payment of overdraft fees. If you find that you have been denied a checking account, you can ask for a copy of your checking account consumer report and check for any errors, particularly if you think you paid any fees you may have incurred. There may be instances in which errors are present on your report, so it will be necessary to dispute them with the reporting agency that provided you with your consumer report. You may also need to dispute the issue with the bank that reported you.

If you are new to checking, it is imperative that you learn all of the responsibilities that come with making sure you have a healthy account. This includes learning how to balance the checkbook and reconciling it with your bank statement each month. Taking the time to learn about these will prevent you from having financial issues in the future. For more information, contact institutions like Cheviot Savings Bank.