Finding Banks That Offer Second Chance Checking
Through second chance checking banks, many applicants who have been denied a regular checking account are still able to receive access to banking services. There are many banks that offer second chance checking, shop around and compare the features offered before deciding.
There are many banks that offer second chance checking, but most people have a few questions about it before deciding that 2nd chance checking is right for them. For one, we all know that second chance bank accounts are different from normal accounts. But why are they different and why the needs to create another type of bank account in the first place?
The term second chance bank accounts refers to bank accounts for people with a record on the consumer reporting agency for bank account activities. The main reporting agency that banks work with is called ChexSystems. It is believed that up to 80% of the banks in the United States use this systems' database.
ChexSystems is an organization dedicated to maintaining a list of names which shows which people have bank account transactions that could cause trouble. Most of the names on this list went on because of their bank accounts have been closed with previously unpaid bank overdraft or bad check fees. There can also be other reasons but the bank overdraft is the most common.
If you name appears on the list, the bank may consider opening an account for you risky. These banks may not offer second chance checking and they will deny your account application with them if your name is in the list. This is also where second chance checking banks come into play.
Banks that offer second chance checking allow nearly individuals or businesses to start savings and checking accounts with them, despite having a ChexSystems record. They are also known as Non-ChexSystems banks. These banks basically do not check the list before letting you start an account with them, essentially giving you the benefit of the doubt. Making good use of your second chance account can also help you to reestablish good ties with banks and get your name off the dreaded list.
Many national or regional banks that offer second chance checking (including credit unions and other financial institutions) will offer both regular and non-Chexsystems accounts. What usually happens is that a person may put in an application for a regular checking account and the bank runs a check through on their information.
If they see a bad recod that hampers the application, they may turn around and offer deny the approval on a regular account but approve it for a second level account. To get around this, some people participate is a 6 hour educational program called Get Checking. Upon completion of this program, the likelihood of an individual getting access to a bank account is much increased. But the program is not available in your area, you can still consider 2nd chance banks.
There are many such 2nd chance banks available. As discussed, you really do not need to look for banks that are exclusively non-ChexSystems users. You can get the same type of non-ChexSystems account through many regular national or online banks or credit unions that provide both regular and second level accounts.
If you are interested banks that offer second chance checking, the best approach may be to do a little research online and look into banks that offer such accounts. Compare some of the features offered and check to see that they are FDIC insured banks or credit unions.
As an alternative to a conventional checking account, consider a prepaid Visa card account with no ChexSystems requirements. It works just like a checking account, allowing for direct deposit of paychecks and online billpay (one-time or recurring payments). You can deposit cash into the account from 135,000 retail locations nationwide. In addition, the card can be used anywhere Visa is accepted. Click to learn more: The Perfect Alternative to a Checking Account!