What are the Good Choice Banking Guidelines?

When selecting a bank account to use for your Contribution Funds, it is important to take into consideration Paydoff’s Good Choice Banking Guidelines.

First, ask yourself:  Is this bank account at a financial institution associated with any of my creditors? It’s important that the bank account you choose to hold money for creditor resolutions be a new, unique account and not one that you have a credit card or loan with.  It is safer, to keep your money in a bank account that is not tied to your credit card in any way, especially when you become past due on payments. 

Next, ask yourself: Have I ever made payments to any of my creditors from any bank accounts with this bank?  If you have paid your creditors through this bank account, you may not want to use this account to hold your Contribution Funds.  The creditor may keep bank account information on file from previous payments.  Once your account with the creditor becomes delinquent, it may be safer to hold your Contribution Funds in a bank account that the creditor is not aware of.  

Should the bank account you have selected not fit the Paydoff’s Good Choice Banking Guidelines, you may want to consider other banks.  Paydoff recommends banking with ING, an online bank.  Another option to consider - instead of banking with a major bank you could open an account with a small, local bank or credit union.