Banking and Avoiding Predatory Products

Check-cashing stores typically charge one to five percent of every check just to cash it. Over a year, that adds up to hundreds of dollars lost to fees that a free checking account would avoid entirely.

A history of overdrafts or an unpaid negative balance can show up on a specialty report (similar to a credit report, but for banking history) and make it harder to open a new account. Many credit unions offer “second chance” checking accounts designed exactly for this situation, with fewer restrictions and a path back to normal banking. Ask a Care Center staff member for a current local recommendation, since which credit unions offer this changes over time.

Local credit unions are often not-for-profit, member-owned, and typically have lower fees and more personal service than large national banks. Compare monthly fees, minimum balance requirements, and overdraft policies before choosing.

Payday and title loan storefronts, rent-to-own furniture and electronics stores, and tax preparers pushing a “refund advance” loan with large fees are all designed around the fact that you need money now. There is almost always a better option, even if it takes an extra day to find it.