You never realize just how much you depend on a checking account to keep your life simple until you no longer have one. Unfortunately for some, this is a life lesson they get a crash course in. Writing bad checks or repeatedly overdrawing your bank account, can quickly get you blacklisted on ChexSystems.
Once this happens, banks are very unlikely to let you open up a bank account with them until problems with your previous bank account have been cleared up. And even then, some banks still won’t open an account for you.
So how are you supposed to go about fixing your credit if banks aren’t willing to help you out?
There is a small portion of the banking industry that recognizes the need to help individuals who are looking to correct past mistakes. If you’ve been blacklisted on ChexSystems it is still not impossible to get a checking account.
These types of checking accounts are known as second chance checking accounts. Most mainstream, nationally recognized lenders don’t offer them, and since these types of accounts represent such a small niche of the banking industry, you’re going to have look high and low where you live to see what banks do. Most banks who offer second chance checking accounts are relatively small and local, and may in fact, be the only branch for miles around.
The lack of branches may be inconvenient, but it is a small price to pay for getting your credit back in order. Second chance checking accounts generally offer many of the same features as a regular checking account, but with a few added safety measures in place designed to protect the bank, as well as help you rebuild your credit and get it back on track.
Safety measures:
Aside from these safeguards, most second chance checking accounts provide you with an ATM card, online banking, online bill pay, and online monthly statements.
The criteria for being eligible to open a second chance checking account is that you must have cleared up any problems with the previous bank who had your name added to ChexSystems, meaning that you must have paid back any money you owe. Most second chance checking accounts also usually require a minimum deposit upon being opened, which is also required to be in the checking account at all times, as well as a monthly charge, which can range from $10 to $25, depending on the bank.
Being blacklisted on ChexSystems doesn’t mean you will be forced to cash your checks and carry cash around for the next five years. Don’t do this. It won’t help fix your situation. Instead, take charge and find a bank who offers second chance checking accounts. Follow their rules closely and within a year or two your credit will have improved and you will more than likely be given a regular checking account again.
Steve Baik is a contributing editor for multiple websites related to the credit and financial industry. You can see his work at:
CreditServicer.com - ChexSystems Help & Bad Credit Resources.
ApexCreditCards.com - Credit Card Offers & Reviews.
Source: www.articlesbase.com