Open Second Chance Checking Account Online
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Second Chance Checking Offers Alternatives for People with Bad Credit
Getting rejected for a new checking account is humiliating. Fortunately, there is something called second chance checking.
When you apply to sign up for a new checking account, most banks use a credit-check system called Chex Systems to evaluate your "worthiness" as a new depositor. Chex Systems works in a way similar to the way that the FICO (credit) score works. In short, Chex Systems tells your prospective new bank whether they should allow you to open an account with them.
The problem is, people who have had a bumpy banking history usually can't get approved for a new checking account due to the bank using Chex Systems to verify their eligibility. If this describes you, the whole situation can wreak havoc on your personal banking situation. After all, having a checking account is a cornerstone of the personal finances of most people.
Fortunately, there is an alternative. There are some very good banks that do not use Chex Systems at all when evaluating a new depositor. These banks are sometimes called "second chance checking" banks because they offer people a second chance to have their own checking account, despite possible past transgressions in their financial history.
This lens explores the second chance checking options available to you and guides you through how to open a second chance checking account online.
When you apply to sign up for a new checking account, most banks use a credit-check system called Chex Systems to evaluate your "worthiness" as a new depositor. Chex Systems works in a way similar to the way that the FICO (credit) score works. In short, Chex Systems tells your prospective new bank whether they should allow you to open an account with them.
The problem is, people who have had a bumpy banking history usually can't get approved for a new checking account due to the bank using Chex Systems to verify their eligibility. If this describes you, the whole situation can wreak havoc on your personal banking situation. After all, having a checking account is a cornerstone of the personal finances of most people.
Fortunately, there is an alternative. There are some very good banks that do not use Chex Systems at all when evaluating a new depositor. These banks are sometimes called "second chance checking" banks because they offer people a second chance to have their own checking account, despite possible past transgressions in their financial history.
This lens explores the second chance checking options available to you and guides you through how to open a second chance checking account online.
You Need a Place to Put Your Money
(Even if you have bad credit)
Second chance checking offers you the chance to have that checking account that is such a necessary part of daily financial life. Without a checking account, your options for keeping your money safe and organizing your money get reduced to putting it under your mattress (not recommended)!
Fortunately, some banks do not use Chex Systems at all when evaluating new applicants. That means that being listed on Chex Systems is not a barrier to getting approved for a checking account. In fact, second chance checking banks accept new customers with poor credit histories and even bankruptcies by the hundreds each day.
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Find out more how to be a more empowered bank customer!
6 Reasons People Get Reported to Chex Systems
Getting reported to Chex Systems can mean becoming ineligible for a checking account. Here are the main reasons you can get reported to Chex Systems.
- The bank was not able to collect for an overdraft or automatic payment that they made on your behalf
- Too many overdrafts
- Debit card or ATM abuse
- Providing false personal information about your background when opening a new account
- Any type of banking fraud
- Having an error - through no fault of your own - show up in Chex Systems about your banking history
The Second Chance Checking Application Process
1. Gathering of basic information:
The first step is to gather the basic information you find on most any application you might find yourself filling out, such as your name, address, social security number, driver's license (or passport number) information.
2. Proving your identity:
Since any bank needs to make sure you are indeed who you say you are, an identity review process is required. This process involves, for example, being asked some very specific questions about your financial history. For example, you may be asked to verify a former address or car payment amount. This is all done for your own security - to make sure nobody else tries to apply using your identity. Are you concerned you may have forgotten this information? No worries - you can get a free copy of your credit report to get this information.
3. Funding your account (optional):
This is an optional step. You can use a debit or credit card to make an initial deposit. Most second chance checking banks will allow you to fund the account at a later stage, if you don't have the funds at the time of the application process.
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by OutdoorExplorer
OutdoorExplorer
Everett is a lover of all things travel, outdoors, and adventure. When he's not working as a freelance writer, he's traveling around the U.S. and beyo... more »
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