2nd chance checking accounts are primarily used by people that have been previously denied by a bank while trying to open a new account. Due to today's economic climate, more and more Americans have difficulty paying their bills. It has been reported that there are over 50 million Americans that do now have a working checking account.
The most common reason why a bank will choose not to do business with an applicant is in the past that person probably owes a bank money from a previously overdrawn account. If the debt is not repaid within the allotted time, then the account is closed with a negative balance.
Usually when that happens, the bank will report the person's name to Chexsystems. Once on the list, a name will remain on that list for up to 5 years. When someone is listed negatively on Chexsystems it becomes difficult to find a bank that will open a new account. Chexsystems is the #1 credit reporting agency that banks use to screen their applicants.
Opening a 2nd chance checking account is the easiest option for those who have past banking problems. 2nd chance accounts are just like regular checking accounts and come with routing numbers, paper checks, and a debit card among other features. These accounts may have a monthly maintenance fee or daily withdrawal limitations, but other than that they operate similarly to a normal bank account.
Depending on your individual circumstances and the bank's individual policies, you may or may not qualify for a second chance account. In that case it might be easier to seek out a company that offers prepaid debit cards.
Along with a less stringent acceptance policy, prepaid debit cards have similar features as a checking account. Direct deposit, electronic transfers, and automatic bill pay are some options that prepaid cards offer.
Not having a working bank account can be a tremendous hassle. If you have been denied by banks due to Chexsystems or previous banking history, 2nd chance checking accounts can help the bad credit consumer manage their time and money more effectively.
The most common reason why a bank will choose not to do business with an applicant is in the past that person probably owes a bank money from a previously overdrawn account. If the debt is not repaid within the allotted time, then the account is closed with a negative balance.
Usually when that happens, the bank will report the person's name to Chexsystems. Once on the list, a name will remain on that list for up to 5 years. When someone is listed negatively on Chexsystems it becomes difficult to find a bank that will open a new account. Chexsystems is the #1 credit reporting agency that banks use to screen their applicants.
Opening a 2nd chance checking account is the easiest option for those who have past banking problems. 2nd chance accounts are just like regular checking accounts and come with routing numbers, paper checks, and a debit card among other features. These accounts may have a monthly maintenance fee or daily withdrawal limitations, but other than that they operate similarly to a normal bank account.
Depending on your individual circumstances and the bank's individual policies, you may or may not qualify for a second chance account. In that case it might be easier to seek out a company that offers prepaid debit cards.
Along with a less stringent acceptance policy, prepaid debit cards have similar features as a checking account. Direct deposit, electronic transfers, and automatic bill pay are some options that prepaid cards offer.
Not having a working bank account can be a tremendous hassle. If you have been denied by banks due to Chexsystems or previous banking history, 2nd chance checking accounts can help the bad credit consumer manage their time and money more effectively.
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