Do you consider applying for a second chance bank account?
If so, then you should be looking for banks that offer second chance banking.
When looking for banks like this, it is important to consider a number of things.
You cannot just jump into the bank for the sole reason that it offers you a second chance account.
In order to improve your chances of acceptance, you should be prepared.
There are a couple of things banks will want to know.
So here’s what to expect.
What To Expect from Banks That Offer Second Chance Banking
You may get denied a bank account because you have previously overridden credit or regularly bounced checks. If this is the case, then there is a good chance that your name will appear in ChexSystems, which is a sort of a blacklist for bank accounts.
Second chance banks provide you with a service that most banks cannot offer: a second chance. Such banks offer second chance banking without consulting ChexSystems. They approve applications based on the present standing and not the credit history of the applicant.
- Additional Fees.
Since second chance accounts are considered “high-risk”, banks that offer second chance accounts require a higher monthly fee (in addition to the application fee).
Moreover, some second chance banks also ask for more fees per transaction, but this depends on the bank you are dealing with. On the other hand, some banks or financial institutions do not ask for monthly charges, but a one-time fee instead. If you are applying for a second chance account, fees are among the things that you should consider.
- Potential Upgrade.
Once your bank account is up and running, you can start using its features. The features of your second chance account vary per bank.
Nevertheless, most banks allow you to do financial transactions that you would normally do with a normal bank account, such as issuing checks, ATM transactions, online bill payments, and many more. If your issuing bank is a FDIC (Federal Deposit Insurance Corporation) member, your funds will be insured to the maximum amount.
Furthermore, you can re-establish a good bank history if you keep a good standing, that is, without any bouncing checks, unpaid loans, and the like, it will be possible for you to have a normal bank account again. Therefore, if you just keep a good bank standing, you do not have to wait 5 years to clear your bad ChexSystems record.
In conclusion, you should never get discouraged, especially if you know that you deserve another chance. If you haven’t found a bank yet, then look some more. You can definitely find banks that offer second chance banking and one of them might give you another chance to set your financial freedom.