subject: Bad Credit Checking And Why It's Important [print this page] There are many things in life that are very important to us, yet we use them so often that it never really crosses our minds how important they are. Such is the case with bank accounts. We use our bank accounts every day, especially nowadays that so many transactions are conducted in electronic form. So having a bank account gives us a safe and convenient way to use financial services like using a debit card, an ATM, making purchases online, paying bills online, and so on.
There are people, however, who are blocked from this functionality. This is because their names are listed in Chexsystems' or Telecheck's databases. Those companies keep records of people who have had incidents happen on their bank accounts, and the businesses where those incidents have happened reported their information to those two companies, who serve as the credit bureaus of the financial industry.
Second chance checking accounts are therefore one of the best ways for those people. They're not able to open a new bank account and are in need of a fresh start if they ever want to re-establish a positive banking history. They also can't perform the basic financial transactions we talked about earlier, that we take for granted but that make life so difficult when we don't have access to them. So whether it's because of a bad credit history, or repeated overdrafts, or identity theft, those people are able to get fresh start checking accounts.
In many cases, you're not even required to have a minimum account balance, although many second chance institutions do require that you have a minimum opening balance for the account. No credit check is required for you to be eligible, which is why they appeal to people with a bad credit history. Most of those companies now offer Visa/Mastercard debit cards which you can use everywhere, and a limited number of checks per month. You also get access to online banking, including online bill payment.
You don't really have to jump through hoops to have access to second chance accounts. All you need is to find a bank that doesn't use Chexsystems (not all banks to, although most of the major ones do). They will give you an application form to fill and you'll be on your way to open an account. Other institutions do work with Chexsystems, but won't turn you down automatically if your record is not favorable. You may be asked to repay what you owe and show proof that you did before they open an account for you. Other times, they will ask you to explain what the situation was before making their decision.
A number of financial institutions have realized that this is a market that is being neglected by the big banks and they're providing those people with the chance to re-establish a banking relationship. If you're stuck in Chexsystems or Telecheck, you can make use of those companies to get a checking account and go on with your life while you're sorting things out.
by: Nicole McMahon
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