Free Second Chance Bank Account - How to Get Accepted
Free Second Chance Bank Account - How to Get Accepted
Humiliation, frustration, shame. When asked how they feel after just having been rejected for a new bank account, these are the three words that most often roll off of people's tongues. "It shouldn't be this hard," is often tacked on as well.
The truth is, even upstanding citizens and consumers with immaculate credit scores can actually be rejected for a new bank account. This comes as a surprise to most people. But, once you understand how it all works behind the scenes, you will understand why people get rejected.
Reason For Getting Rejected For New Checking Account
If you have been recently rejected for a new bank account, it is likely that your name has been reported to something called Chex Systems. This innocent-sounding name is actually a database of ex-bank customers who are considered to be credit risks.
It is important to note that in this sense, "credit risk" has nothing to do with your FICO score, which is the credit score generated by Experian, Equifax and TransUnion that is used by lenders to determine your eligibility for a loan. No, Chex Systems is a different animal altogether and has nothing to do with your credit score.
In a nutshell, banks will report anybody who is deemed to be a banking credit risk to this system. If your name shows up there, then any bank considering you for a new account will almost surely reject your application outright.
What is Second Chance Checking?
Second chance checking is a godsend for anybody who has been having trouble securing a bank account through normal means. A second chance checking bank will never refer to Chex Systems to determine whether you are considered a banking credit risk to them - ever. In fact, second chance checking banks boast that they do not care whether your name shows up there. In other words, they will not let Chex Systems get between you and your own bank account.
How To Get Accepted
To get accepted for a second chance checking account, follow these steps:
1. Develop a list of possible banks: When choosing a bank, more choices is always better. Be sure to develop a list of at least 5 second chance checking banks before approaching any of them.
2. Prepare to prove your identity: Any reputable bank will require that you prove that you are who you say. Get ready 2 forms of ID and be prepared to answer questions about your financial history (don't worry, they're pretty easy!).
3. Apply: Once you have chosen a bank that you like, apply. The application process usually takes about 15- 20 minutes, especially if you apply online.
With second chance checking in play, score one for the average consumer who just wants a bank account without the hassle.