Do You Need A Second Chance Checking Account?

Are you desperately looking for a bank that will accept you in spite of having bad credit or a Chexsystems record

? Finding a bank like that can be hard, when it's widely reported that between 80 and 90 percent of all banks rely on Chexsystems to decide who they will open checking accounts for and who they won't. The good news is that there are still banks out there that open accounts for people who are on Chexsystems. These "special" accounts are called second chance checking accounts, or fresh start checking accounts.

Financial problems can quickly spiral out of control and when that happens, it's very hard to get your finances back in order. Sometimes all it takes is to have one big unexpected charge, and then you have a series of checks bounce (with the fees that come with it), or the checks get paid and you find yourself in such a large overdraft hole that you're unable to pay for it. If it remains unpaid, the bank simply closes your account and reports you to Chexsystems.

From that point on, it becomes extremely difficult to open a new checking account, as bank after bank will turn you down once your name come up in the Chexsystems database. This is because Chexsystems keeps a record of everyone who's considered as a bad client for banks. And most of them will run a check on your name to see if anything comes up.

There's no need to even point out how hard it is to function nowadays without a checking account: no ATM transaction, no direct deposit of your paycheck, no online bill pay, no online shopping, and so on. There's also the high risk that comes with having to carry cash everywhere you go. And the cost of having to cash your checks. It's a nightmare.

Non Chexsystems banks offer specific accounts for people on Chexsystems' database. They either don't check with them at all, or they don't base whether or not they'll open an account for you just on that factor. The trade-off is that your banking will cost you more than if you had a regular checking account, but that's kind of a trade-off.

Non Chexsystems banks comes in all forms. Some are local banks that service a limited geographic area. They are generally more flexible, since they tend to know their customers on a personal level. Some are bigger banks that cater to this under-served portion of the population and realize the profit potential because those people aren't all bad customers. There are also online banks that offer second chance checking accounts and will send you a debit card linked to your account so you can make purchases offline too.

by: Nicole McMahon

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