Refuting Two Common Myths Concerning Checking Accounts

Having a checking account can be an almost indispensable financial tool for many people. However, it can be common for individuals to be fairly uninformed about checking accounts. As a result, they may believe a couple of misconceptions concerning this type of a bank account. By having a couple of the more common misconceptions about checking accounts refuted, you will be better able to make choices as an informed consumer.

Myth: Banks Always Charge Monthly Fees For Checking Accounts

If you are like many people, you may want to avoid as many fees as possible. Unfortunately, it can be common for individuals to make the assumption that they will be unable to avoid paying a monthly maintenance fee for a checking account. Luckily, you should be relieved to learn that many banking institutions offer their customers a free option for a checking account. However, you should be aware that these accounts will often have stipulations mandating the account to contain a minimum average balance in order to avoid these fees. Therefore, you might need to evaluate the offerings from several different banks to find one that has a minimum balance requirement that you can meet.

Myth: You Will Need To Have Good Credit To Open A Checking Account

Having good credit can make it easier for a person to obtain financing, employment and other important advantages. However, individuals can encounter a number of financial problems that may compromise their credit history, and some people make the critical mistake of assuming that they will need to have a good credit score in order to open a checking account. Fortunately, this is not usually the case, but banks may be hesitant about issuing you an account if you had a previous account closed for overdrafting and failing to pay the balance. If this is the case, you will likely need to pay back the previous bank to open an account at another institution.

Being a smart consumer when it comes to your banking is important for making sure that you are getting the most from your money. Unfortunately, it can be easy for individuals to give credit to misconceptions about checking accounts. If you have never given much thought to this type of account, learning that you may be able to avoid monthly maintenance fees and that your credit history may not prevent you from opening an account will help you to make smart choices about managing your money. Contact a company like Rio Grande Credit Union to learn more.