Your Ticket to Financial Stability

Second Chance Bank Accounts - Life After Bad Credit

Approval of Second Chance Account
Second Chance Banking

There are times when we made mistakes in our lives, and these include financial mistakes.

While there are financial mistakes that are short-lived, others seem to reflect on our credit records for life. When this happens, traditional banks usually refrain to give us important financial tools like savings and checking accounts.

Well, if this is your case, then it may be just the right time to discover how second chance banks can help you.

Why is Having a Bank Account so Important?

A bank account gives you the freedom of using your money in a more convenient way.
It is like this: Having a bank account allows you to pay your monthly bills, such as utility bills, auto loans, insurance, and rent faster and easier. If you do not have a bank account, you will have to pay using a cashier’s check or money order, which you have to exchange first with cash.

Furthermore, converting your paycheck would be a big hassle if you do not have a bank account.
Depending on your pay date, you will have to cash your check once a month, twice a month, or you may even have to cash your paycheck every week. Not only do you need to find a place to cash your paycheck, you also have to pay fees every time an exchange is made.

Okay, let us say that you can manage to pay the bills using cash and it does not bother you to cash your paycheck every payday. Still you will not be entitled to have a debit card, which is considered as a very important tool in traditional banking. Debit cards allow you to make online purchases, shop cashless in physical stores, and most importantly to apply for a credit loan. Without a bank account, you will be financially limited, even if you have the money to spend.

What Exactly Are Second Chance Bank Accounts?

Second chance bank accounts are either savings or checking accounts (or both), which are offered to people who are denied to get the same accounts via conventional banking channels. More often than not, higher fees are associated with second chance banking in order to give the financial institution that is offering these second chance accounts the insurance.

Associated Fees

Banking FeesSecond chance bank accounts are beneficial to those who have bad credit records, but you must understand that these accounts come with certain fees.
Since second chance banks often consider their accounts as ‘high risk’, customers are often charged a relatively higher fee compared to those with normal bank accounts. Some institutions charge you at a per transaction basis, but some require you to pay for this fees at once.

Nevertheless, the fees that accompany a second chance account is comparatively lower than what you are actually spending on a “cold-cash lifestyle”. Furthermore, once you have rebuilt your financial credibility by doing responsible banking, you can probably go back to a regular financial account!

Where To Get a Second Chance?

A large number of financial institutions offer their services in terms of financial accounts to those with tarnished credit records.
Since many people were hit by the recent economic crisis, these institutions have finally decided to assist by offering a second chance for people who need a bank account.

  • Search for online banks.
    One of the best places to look for banks that offer second chance bank accounts is on the web. By searching online, you can look for these institutions and compare their services, fees, and terms and conditions. If you want to try and apply to one of the financial institutions, simply fill up their online application form and send it back. It is that simple. Moreover, knowing your application status is done almost instantly. You practically do not have to wait for it; you will know if your application is accepted or denied in a matter of days.
  • Traditional Banks.
    Some conventional banks give people whose names appear in the dreaded ChexSystems list a second chance. That is, if you have not committed a major fraud. In addition, your bank can also give you a “parole”, which allows you to open a normal bank account again, but this is not always the case. Alternatively, when all things have been tried and still did not work as you expected, you ask for a second chance at the bank.


It is crucial to give hope to people who have bad financial experiences, such as getting over-drafted, or having lost a lot of money due to monthly payments or debts. Regardless of the past financial issues you had, and no matter how bad it has been, opening a bank account is still possible.
You can get a fresh new start with a second chance bank account which allows you to rebuild your once-tarnished financial background.