subject: Understanding Second Chance Banking - Access To Normal Consumer Banking Services [print this page] Understanding Second Chance Banking - Access To Normal Consumer Banking Services
Banks that offer second chance banking present a very much needed service to men and women who have been denied a standard checking account. When a banking institution turns down a person for a new account, probably the most frequent reason is that the applicant has a record within the ChexSystems database. ChexSystems monitors wayward savings and checking account activities.
What the ChexSystems database does is monitor checking account activities. In the event you close your bank account despite the fact that the account has no sufficient funds to pay for bank fees, your account will be flagged. When you want to open a brand new checking account, your record will be retrieved and you could possibly be denied the chance of opening a new bank account.
In case you have been flagged by ChexSystems, there's a way for you to get around the ramifications through a no ChexSystems account. The very first thing you can do is to find a bank that does not have ChexSystems checking accounts which means they don't use ChexSystems to figure out whether or not to open a new account. You can find out by calling the banks or by checking it out via the web. Some banks may even promote that they're not affiliated with ChexSystems on billboards or flyers.
More usual than not nowadays, most banks are members of ChexSystems. No worries. Many regular banks will still offer you or else have subsidiaries that specialize in second chance banking. If that is the case, you are able to use their services. These include huge nationwide and multi-state banks like Chase or USBank, Compass Bank, Wells Fargo and numerous smaller regional banks and credit unions. Along with a second chance checking account, you are going to also very likely qualify for a savings account.
The excellent news is that these second chance banking accounts behave almost just like standard checking accounts. You can write checks, do on-line bill pay, withdraw cash through an automated teller machine (ATM) and pay for purchases using a debit card.
If the financial institution is a recognized member institution of the Federal Deposit Insurance Corporation (FDIC), the account balance should be government guaranteed up to the standard amounts. As soon as you start establishing a banking history with these banks, they will monitor to see if you can keep your account in good standing. If so, they will most likely present to you an upgrade to a regular account. Typically, it takes about 5 years for the ChexSystems database to drop the incidents off, so by establishing a great rapport with the bank through your 2nd chance account, you get to have a normal bank account much sooner. This could make it even easier and cheaper to have a checking account.
Second chance banking services are widely at your disposal across the country. In the event you are unable to find a bank at your initial try, don't feel upset. Bear in mind some of the banks mentioned above. You can also take a look at additional reports as well as other websites online for some more options of financial institutions and banks to evaluate.
