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Financial Problems? Try a Second Chance Checking Account
By Steven J. Talrechi | August 8, 2008
Have you had financial problems in the past and are not eligible for a checking account? ChexSystems, TeleCheck, or bad credit can keep you from having a checking account. If being reported to one of these systems is keeping you from having a checking account, a second chance checking account may be the answer to your problems.
Information usually stays with reporting agencies for five years or longer, but you can still obtain a second chance checking account in many cases. If you have had a string of financial problems that have led to a closure of your previous checking account, it can be difficult if not impossible to open a regular checking account.
Since there are banks that are beginning to realize this, they have started second chance checking accounts for people who may have had problems in the past. When you look for a bank that offers these types of checking accounts, make sure you check to see if they charge a fee for this. Some banks will charge a fee, sometimes up to $300, for their approval of your checking account.
Nevertheless, a second chance checking account is a real bank account. As with regular checking accounts, they have a debit card or checks available with them. The same benefits with your old checking account are available with your new one, too. You’ll still have a routing and account number, so that you can have your paychecks direct deposited if you wish. You’ll also likely have available to you a true debit card that works at any ATM, usually with a Visa or MasterCard logo. These, as with any other debit card, work anywhere that MasterCard or Visa credit cards do.
If you just want a debit card and not the ability to write checks, your setup will include a voided check so that you can set things up to have your paychecks directly deposited. You don’t have to go through credit checks or verification through either TeleCheck or ChexSystems. Other accounts may offer you a prepaid card, but this is in fact a regular debit card.
If you are tired of paying fees to have your check cashed and buying money orders to pay your bills, this may be the option for you. Everyone needs a second chance. Today a checking account is essential, from having your checks direct deposited to paying bills; it is a convenience that most people take for granted. However, if you are one of the unfortunate people that have had a little financial difficulty and have been denied a checking account you realize the problems not having an account can cause.
Many people bank online as well. This is impossible if you don’t have a checking account. Many employers require that you have a bank account so that they can offer direct deposit instead of paying with paper checks. This takes care of many problems for them and also makes it easier for payroll. Today, then, checking accounts almost essential. Yes, you can open a savings account and have money deposited there, but you also have to go to the bank to take money out.
What if you had the opportunity to start fresh with a second chance checking account? Thanks to many banking institutions realizing that this is not always the fault of the account holder and that many times people have problems that escalate out of control, they have decided to offer you a second chance.
Topics: Finance |