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If you’ve had financial problems that have made you ineligible for a checking account, don’t despair. You’re not alone. Systems such as ChexSystems or TeleCheck can keep you from having a checking account, as can a bad credit history. If you’ve been reported to one of these systems and you can no longer get a checking account, you might be eligible for what’s called a “second chance” checking account. In fact, it 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.

Banks are beginning to realize this, and to that end they have started to use what are called “second chance” checking accounts for people who have had financial difficulties in the past. When you’re looking for a bank that offers second chance checking accounts, check and see if they charge a fee for this. Some banks charge a fee of up to $300 in order for them to approve 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 no longer want to pay fees to have a check cashed or to buy money orders to pay your bills, a second chance checking account might just be for you. Most people need a second chance after they’ve gone through difficult times in their lives. A checking account is nearly essential these days, not only because you’ll need to have your checks directly deposited, but because you also need to pay bills. Most people take this convenience for granted. However, if you have unfortunately had some financial difficulty so that you’ve been denied a checking account, you realize that it can be a difficulty to have no checking account.

Many people do a majority of their banking online. This is impossible to do if you do not have a checking account. Many employers are requiring a bank account rather than paying with paper checks. This eliminates many problems and makes it easier for their payroll department. So today, you need a checking account. Yes, you can open a savings account and have everything deposited there, but this entails having to go to the bank to take money out.

What if, then, you could start fresh with a second chance checking account? Many banks have begun to do this, because they realize that these situations either were not the fault of the account holder or that this was simply a temporary situation that got out of control. These banks have decided to offer you a second chance, so why not take it?

Finances

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