Those who have been denied with a bank account can find hope through second chance banking.
Being denied a savings or checking account is not a recent issue.
As a matter of fact, if you were recently denied with one, then you are not alone. Hundreds of thousands of people are being denied bank accounts because of their bad credit statuses and delinquent accounts.
While some conventional banks may offer you a “parole” and let you open a bank account with regular features and service charges, some may not even think of giving you a second chance.
Therefore, if you found a bank where you can open a second chance account, you have to do your best in order to get approved.
To make it easier for you, here are some important factors that you should consider when applying for a second chance checking or savings account.
Application Tips for Second Chance Banking
- Choose a bank with a fresh, modern view on the ChexSystems list. More often than not, the reason why banks deny you a bank account is because you have a poor record in the ChexSystems. You may have a delinquent account listed in the ChexSystems list. While most banks automatically deny applications from those who are blacklisted through this list, some have a friendlier outlook on those who are listed in the system.
- Consider the fees. You should know that second chance bank accounts are approved 90% of the time. So, if you are considering to apply for one, you should pick a bank that has competitive application fees and monthly charges. These fees are common in second chance accounts, since the banks or financial institutions want to have assurance because they count you as a high-risk case. The typical application cost is $10 and the monthly fees range from $4-$10, depending on the services offered.
- Choose based on your gut and the facts you have gathered. When planning to apply for a second chance account, it is better to “collect then select”. List down 5 or 6 second chance banks that you consider and gather enough information about each one, then compare the facts and choose the best. Better yet, let your instincts help you decide which bank to choose for your accounts.
No credit, bad credit, or a bad checking history should not hold you back from getting another bank account. Getting a second chance account is possible.
Nevertheless, you have to be a lot more responsible in second chance banking. This might be your very last chance to prove that you can handle your finances and bring back the trust you need in order to have a normal bank account once more.