There are a lot of people out there who are lost and have no idea what to do when they are getting rejected for a new bank account. You should know that although you might be getting rejected when you apply for a new bank account, it is because of your banking history. Despite your bad history with banks, there are banks out there that will offer you a second chance bank account. There are certain limitations, and all banks handle their second chance programs differently. Either way, there are banks out there that are willing to give you a second chance at using a checking account. There are a lot of credit unions out there that offer you a second chance. The best thing to do is start searching on the internet for a local bank that has this program. If you live in a small community, there is a good chance you might have to get a new account with a bank that is not local. You will still be able to deposit money with a direct deposit and withdraw money with your check card at atms and stores that offer cash back.
It sucks when you have a run of bad luck and you are so tight on money that your bank accounts are running into the negative. People get stuck in ruts and the fees are so much that they cannot pay them back. Well, what happens is you can get your bank accounts closed on you, and that in no way is fun. If that happens you will most like be put on chexsystems. This is a list where banks check your background before they decide to open an account with you. Ok, so if you land on that list go here: Chexsystems – This is the company that runs the bank list. From there, you navigate to get a free report to see what is on there you need to correct. Best thing to do is man up and pay the banks back if it you owe them. Now, if they completely ripped you off or there are errors on your report, than confront them on that. Basically you want to fix your Chexsystems report as if it is your credit report. In the mean time while you are doing that, you should sign up with a bank that will give you a second chance checking account. You really need to correct that chexsystems report because your name will stay on it for 5 years if you don’t touch it.
Banks are aware that a lot of people get into sticky situations and get trapped in a flood of non sufficient funds fees. These fees can often times be unfair and multiply like crazy. When you get a new account with a bank you have not had problems with in the past, you need to make sure you do not let any mistakes happen. Your checking account needs to stay well above zero dollars. Not only do you want to avoid getting NSF fees that can burn your pay check quickly, you want to make sure you do not lose your new second chance checking account. If you had problems with getting NSF fees, one way to prevent a mountain of them from happening is to not use your debit card for small purchases. Often times it is hard to track your balance when you are making a lot of small charges with your debit card. You should use cash to pay for small things like coffee, food, etc. It is okay to use your debit card for large purchases. When you are using cash it is a lot easier to keep track of how much you have spent, and you cannot overspend into the negative if you are only using cash for the small expenses. Banks make a lot of money with overdraft fees that customers pay, and you do not want to be one of those customers. Banks make a huge amount of money off of fees. When you go into the negative in your checking account, they consider that negative balance a loan. Each transaction that goes through your account while it is negative will generate a NSF fee. It has been said that banks have made up to 3000% on these “loans” when a checking account goes into the negative.
The goal with your second chance banking is to avoid these fees. Of course these fees are unfair and insane, but until something changes we will have to play by these rules. It should not have to be like this, but it is what it is. Think on the defensive side to make sure your second chance checking account is not going to be close to having a zero balance. Save a few hundred or more if you can in your checking account. If you have extra money in your savings account, you might want to just keep it in your checking account. Banks make the “overdraft protection” sound like a good thing, but it is just a scheme to get you to feel comfortable with getting your checking account below zero and charging you insane fees. Managing your money like a hawk is going to benefit you in the long run with your second chance banking account.
There is a vast number of people who are left without a checking account. Unfortunate things like a pile of NSF fees can drive a person into debt and lose their checking account. When something like this happens, the bank will submit their name to Chex Systems. Chex Systems is a company that manages a database for all the banks that use it. The people who are on this list are people who have had problems with NSF fees and owe banks money from these fees. When you go to apply for a new bank account at a different bank, they will most likely check the Chexsystems List and deny you a new account. This is where a Second Chance Checking Account comes into play. Banks out there know that a lot of people have had problems in the past with checking accounts, and they are willing to work with them. When it comes to a second chance checking account, there are accounts that are free and ones that cost a monthly fee. The fee can cost anywhere from 5 dollars to 12 dollars a month. The great thing is that you can still get a checking account. It can be difficult when you are trying to pay bills and you do not have a checking account to use. A lot of second chance checking accounts are just like a regular checking account that you have had before. You should manage your money in the new account more closely, because some banks can have policies that if you make more mistakes in the future they will cancel your account. Having your new second chance account canceled is the last thing you want to happen. Some banks that have a second chance checking program have a guideline when they accept or deny people. If you meet the requirements then you can get the account. There are also financial institutions that will offer a guaranteed checking account. Some of these banks will charge a monthly fee, but sometimes it is worth it to pay a small monthly fee to be able to use a checking account again. Cashing checks at a check store or Walmart can cost you money and add up fast. So if you are hesitant to get a checking account that requires a small monthly fee, figure out how much it is costing you to have your checks cashed at check cashing businesses. No matter what your situation is, you should be able to get a second chance checking account.
