Author: Adam Luehrs / Source: fivecentnickel.com
Is there really such a thing as a second chance in the world of personal finance?
Some banks seem to think so. In fact, certain institutions are willing to help people with troubled credit histories start to build up their financial futures by offering second-chance checking accounts.
Of course, these accounts don’t come with all the features of traditional checking accounts. You may have to jump through some hoops to get back into the good graces of the banking world.
However, a second-chance checking account could help you to build a brighter future and erase some unfortunate or irresponsible behaviors that have left marks on your banking history. Let’s take a look at everything you need to know about second-chance checking accounts.
Why Second-Chance Checking Accounts Are Necessary
The traditional banking world could shut you out for a number of reasons.
Banks often deny applications for new accounts from people with checkered banking histories. It’s impossible to hide a poor banking record when applying for a new account. In fact, every negative thing in your account history has been reported using something called the ChexSystems Network.
A person with a closed bank account in their history instantly sets off a red flag during the application process. The reality is that if you have an account closed due to unpaid overdraft fees, you may not be able to obtain a traditional banking account from a reputable institution.
Related: How Automation Has Helped Me Reduce Debt and Save
Why They Are Worth the Effort
Some people might say that jumping through hoops just to open a bank account simply isn’t worth the effort.
Those people might just decide to use prepaid debit cards or pay a cash checking service to cash their paychecks.However, those options can both become quite pricey over time when you consider all of the fees that are attached. What’s more, people who rely on those service can’t enjoy the convenience of online banking or around-the-clock ATMs. Plus, more and more employers are moving to deposit-only paycheck methods. If you don’t have a checking account, you might have trouble getting paid. Beyond that, your bank account situation can impact your ability to…
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