Bad Credit

• Your credit score is a set of numbers ranging from 300 to 850. A higher number represents a better credit score. You can further break down credit scores into four separate groups: great, good, average and sub-prime. Any score over 720 qualifies as great credit, and a score from 675 to 719 represents good credit. A score from 620 to 674 qualifies as average credit, while anything under 620 qualifies as a sub-prime score. All information is according to lendingtree.com. Sub-prime is another word for bad credit. You'll face difficulties obtaining a loan with a sub-prime credit score.
  
  

Opening a Checking Account With Bad Credit

• Your credit score generally has no effect on your ability to open a checking account, according to The Dollar Stretcher website. Most banks do not take into account your credit score when approving -- or denying -- you for an account. Checking accounts aren't like loans or credit cards. The bank isn't lending you money with a checking account, therefore, it doesn't really have a lot to lose. The only way a bank loses money by approving you for a checking account is if you overdraft your account and refuse to pay the money.
  
  

ChexSystems

• If you have had a bank account closed in the past due to an outstanding balance from overdraft fees, your bank likely reported you to ChexSystems. ChexSystems is a credit reporting agency, but it differs from a credit score, because it's not really a score at all. ChexSystems is an agency that banks use to report closed checking accounts and check for people who have had accounts closed. Most banks use ChexSystems. You essentially have no chance of opening a new checking account with a bank that uses ChexSystems if you've been reported to the agency.
  
  

Removing Your Name From ChexSystems

• Your name will stay on ChexSystems for five years, according to ChexSystems. The only way to get it removed is by either contesting the report or by asking your bank to remove your name. Some banks will remove your name from the system if you pay back the outstanding balance. However, the bank is not obligated to do so. If you cannot get your name removed, you can elect to search for banks that do not use ChexSystems. Certain banks advertise "Second chance checking accounts," which means they typically will approve you for a checking account even if you're on ChexSystems. Second chance checking accounts normally come with higher fees than normal checking accounts.