Second Chance Checking Accounts

There are a number of reasons why it may be difficult to obtain a checking account, among which is having your name in ChexSystems. If you have ever written a check that did not clear because of insufficient funds there is no doubt about it. Your name will be registered with ChexSystems. If you have had the misfortune of having a checking account closed due to repeated bouncing of checks, then there are only a few choices you have if you want to open a new bank account. Sometimes it is even difficult to open a savings account if your name is on file. Unfortunately, in this day and age it is almost impossible to conduct any business whatsoever without a checking account so you may want to investigate second chance checking accounts.

What is a Second Chance Checking Account?
There are still a few banks around that are willing to open checking accounts for consumers without running a credit check. This is the basic gist of what a second chance checking account is all about. If they don’t run your credit it is not likely they will find a report provided from ChexSystems. Also, there are other times it may be difficult to obtain a checking account as a result of certain factors such as a recent bankruptcy or default on a major loan. Second chance checking accounts do not run your credit so that you have the opportunity not only to have a checking account, but you can also begin working to restore your credit.

Certain Restrictions May Apply
Whether you are looking for a checking account online or at a brick and mortar bank, certain restrictions may apply on checking accounts for people with less than perfect credit. Sometimes you will be required to keep a minimum balance in the account and other times there is a monthly fee attached to the account. There are banks and credit unions that will allow you to open a checking account but will not issue a debit card with a Visa or MasterCard logo on it. Each financial institution will have its own restrictions and contingencies so it is advisable to do a bit of research prior to opening an account. In other words, read the fine print!

Something to Keep in Mind
One of the things you need to keep in mind is that just because you have a checking account doesn’t mean that a merchant, landlord or bill collector will honor checks written by you. They, too, have access to ChexSystems and if they scan your check you may be highly embarrassed if they refuse your check in a public place. For this reason, it is probably in your best interest to find a second chance checking account that will issue a debit card with a Visa or MasterCard logo. Debit cards are honored the same as cash in most instances and can save you the embarrassment of not having enough cash on hand to pay for your purchases or even when trying to pay utility bills.

Once you have a new checking account it is up to you to remain in good standing. Second chance checking accounts may be easy to find, but third, fourth and fifth chances are hard to find. Some banks may issue second chance accounts even after running your credit, but those same financial institutions are under no obligation to open accounts for ‘repeat offenders.’ If you have trouble budgeting your money from paycheck to paycheck, do yourself a favor and don’t order paper checks! Use your debit card and if there is no money in the account, go without! You can’t get far in today’s society without good credit and a checking account, so value the chance you have been given to restore your good name. You will be thankful in the long run.

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