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Second Chance Bank Account - Tips On Opening A New Savings Or Checking Account

For anyone who has been denied a bank account, there is hope through a second chance bank account. Here, we explain 3 important factors to consider in your second chance savings or checking account application.

Are you looking to open up a second chance bank account because you have been turned down for a regular savings or checking account at a bank or credit union? If that is the case, you are definitely not alone. While some people have heard about the concept of second chance banking and think it is easy to get access, others have been turned down by more than one bank and are starting to be skeptical that they will get a new bank account soon. The truth is somewhere in between. Not all banks will extend this benefit to applicants, but there are banks that will. If you know what to lookout for, you will be well on your way to getting a new account set up soon. In this article, we provide the top 3 factors to consider. By applying these tips, you can easily get not only a good second chance bank account, but get one on good terms to your best benefit.



1. Policy On ChexSystems Record

Perhaps the main reason how someone gets denied for a bank account is because of a poor ChexSystems record, even more so than a bad credit score. A poor ChexSystems record could be due to many reasons, a common one is that you have previously closed another bank account with another bank and the previous bank is claiming that you still owe fees on the account. To get around this situation, you need to find banks that have a friendly view of an applicant with a negative ChexSystems record. The first category will be banks that banks that do not use ChexSystems or banks that do not base their account opening decisions on ChexSystems. It could also be a financial institution (acts and feels like a bank but does not call itself a bank) or a credit union. To find out, you could call or visit a branch or check their website to see if they are a ChexSystems member bank. Some banks may be ChexSystems member banks and actually review your ChexSystems standing when you apply. However, they have a friendly policy that will still extend second chance bank accounts to those with poor ChexSystems standings.

2. Bank Account Application Fees/ Monthly Fees

Some banks will offer second chance bank accounts, but they tag additional fees for accepting a checking account application and/or ongoing monthly service fees on these accounts. This could be something like a $10 application fee and/or $10 monthly fee. In addition, some could impose other terms like check writing fees and extra charges for an ATM debit card. If you have been used to a free savings or free checking account set-up, this may come as a less than pleasant surprise to you. The key is not to rush into setting up a bank account with the first bank that have a friendly ChexSystems policy. You can still comparison shop and find a bank that has low or no fees associated with a second chance bank account.

3. Upgrading Over Time

While some banks or credit unions may charge higher than regular monthly fees for a second chance bank account, this may only temporary for 6 - 12 months. Once you start the account with them, and the account remains in good standing over time, they could very well upgrade your account to regular status. That means that over time, you have a chance to build up your history with them and get back on the regular banking track with them despite the negative ChexSystems record. Even though it could take 5 years for a ChexSystems record to clear, by establishing a relation with the bank, your account will gain the full benefits of a regular well before your ChexSystems record clear up. So when opening an account, remember to ask about the possibilities of getting an upgrade on your account.

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!


The perfect alternative to a checking account