I've been using prepaid debit cards rather than a checking account for the past 4 years. I had a checking account years ago and screwed it up big time. Basically, I had a medical procedure done and while I had the money for that and to cover incidentals, there were some unforeseen complications that required me to stay in the city in which I had surgery. Between the Percocet and trying to stay caught up with schoolwork, I didn't keep a close enough eye on my balance, so when I was well enough to go home, I was hit with a nasty surprise. I still owe money to that bank and I will pay that debt. However, I'm sure that the information is and will remain in ChexSystems for at least another year or two.
So this is my question: is it worth enrolling in a second-chance checking program or continuing to use a prepaid debit card until the negative ChexSystem information drops off?
My situation:
The Walmart Money Card has no monthly fees as long as at least $1000/month is loaded onto it. Loading that much via direct deposit will be no problem for me. The biggest disadvantages are that I can't do automatic monthly payments and I have to pay check cashing fees if I get a check that's drawn on a particularly shitty bank, like Bank of America, which charges $6 to cash a check drawn on that same bank.
OTOH, not putting my finances on autopilot means I have to pay more attention to them, which forces me to focus on my financial situation on a regular basis rather than when I feel like it. I pay some of my bills, like rent and utilities, with cash. Those two things are under my partner's name, so I give him the cash for my half of the household expenses. The cell phone bill is paid online via debit card. My student loans are paid with the card over the phone (no fees) or with a money order via mail. I rarely get checks; when I do, I just go to Walmart because their fees are very low for checks under $300 (i.e., just about all of the checks I get) and it's within walking distance of my house.
I don't like checks and even when I had a checking account, I didn't use them. I'd rather pay the $.70 for a money order from Walmart or go to a check cashing place and get a free money order. That way, I don't have to worry about things being on hold and potentially finding myself with far fewer funds than I thought because I forgot to write down the information from that check. It's a relatively cheap way to insure that my forgetfulness and unmedicated ADHD don't trip me up financially.
I don't plan to buy a house because I can't stand the idea of being tied to one place for 30 years or being stuck trying to sell a house if I want or need to move. I don't plan to take out loans or get a credit card. For my situation, I don't really see a reason to have a checking account.
Having looked into second chance banking programs, I saw that a lot of them charge fees that are more than my prepaid debit card. If I don't deposit $1000 onto my MoneyCard, I am only charged $3 for that month. The lowest fee I saw for a second chance banking program at a bank in my area is $8/month, regardless of the account balance or how much is deposited into the account every month. Given that, I'm not inclined to give up my bank-free ways, at least for the next year or two, if ever. Other companies have found ways to provide the services that I need for free or at a very low price, so to me having a checking account is a lot like having a cell phone contract in that I'd be paying for a lot of other stuff that I don't need or use when there's a cheaper and suitable alternative.
Is there something else that I've missed?
I know that at some point I will need to open a savings account in my name. In the meantime, I plan to open another debit card for that purpose and keep it stowed away in my safe or use the old trick of putting it into a container filled with water and freezing it until I'm sure that I'll pass a ChexSystems verification and can open a savings account that doesn't charge ridiculous fees for an account that's in good standing and well above the minimum balance.